Government may take on flood risk protection

The government says it will consider assuming the flood risk of companies affected by the massive inundation after insurers showed reluctance to provide coverage to them."The strategy will help reassure foreign investors that they will have risk protection from natural disasters," Deputy Prime Minister Kittiratt Na-Ranong said yesterday.Insurance companies could decline business from firms in severely swamped provinces - Ayutthaya and Pathum Thani in particular.The government wants to persuade foreign investors, particularly those from Japan, to stay in Thailand.Ensuring insurance coverage is part of the government's post-flood rehabilitation plan.Reinsurers overseas reportedly have refused to accept all risks of companies whose business |is located in such high-risk |zones.When investors are rejected by insurers, they will reconsider their plans to set up plants in Thailand. If they are convinced by the government's measure, they will feel more secure, Kittiratt said, adding that the policy would not require a large budget.The government will also invite water-management experts to draw up a long-term plan so that the country can avoid massive flooding.