Claims assessors to help SCB corporates

Siam Commercial Bank (SCB) has contracted claims assessors to help its flood-hit corporate clients to expedite their insurance claims.

Business experts will also advise on future flood-risk protection, but insurance claims are seen as the most troublesome issue.

Complicated and lengthy filing procedures are extending the suffering of many clients.

Arthid Nanthawithaya, a senior executive vice-president, said small companies in particular are finding the claims process difficult due to a lack of experience in this area.

SCB itself is not a business expert and so has employed consultants to advise business clients in the post-crisis period, he said.

Roadshows will travel to all seven affected industrial estates to present the bank's financial and non-financial assistance measures including insurance claim assistance.

"The question of insurance claims after the floodwater subsides is a big problem for several of our clients. Helping them to clear up this issue speedily will benefit both clients and the bank _ a win-win situation," he said.

Most corporate clients have insurance protection to cover all risks including floods, said Mr Arthid.

Combined losses of the seven affected industrial estates is estimated at 300 billion baht, 60-70% of which is covered by insurance.

Some 800 of SCB's corporate clients have been affected, one-fourth of them directly such as Japanese automotive and electronics concerns.

However, SCB has suffered only marginal exposure from those two sectors, as for them it generally provides fee-based income services and working capital rather than term loans.

SCB's automotive and electronics clients are generally small and medium-sized enterprises, and the credit lines for the two sectors together represent less than 10% of its corporate loan portfolio.

At this critical time, financial assistance for large businesses will comprise grace periods and expansion of loan maturity rather than additional loans.

This is because most of them have a solid financial status and already enjoy sufficient liquidity support from their parent companies.

"With their financial and operational strength, our affected corporate clients will resume operating in 3-6 months, with full production expected in the first half of next year," Mr Arthid added.