❌Exclusion Machine errors - Deka 6020-6021/2024

Court rules against paying claim $90 million in business interruption damages because power system was not covered by BI policy

Summary of issues

• Products: Insurance company insures customers with

• 1. Property Insurance (IAR)

• 2. Inventory Property Insurance

• 3. Business Interruption Insurance

• Loss: The generator in the vegetable oil factory made a loud noise and there was

  a flame at the generator, causing the customer's vegetable oil factory to be unable to operate.

• Claim Payment:

  • The insurance company paid A. 950,000 Baht for the repair of the generator to the customer.

  • The company refused to pay compensation for B. 5,912,725 baht for the stock of fresh palm fruit and C. 28,066,657 baht for the crude palm oil. D. 90,097,206 baht for the damage of business interruption.

• Arbitration panel The court ruled that the company should pay compensation of 113,979,383 baht (with interest of 7.5% per year).

• Court of Justice

  ❌ Not Compensation business interruption damages of 90,097,206 baht

  Exceptions: Does not cover damages from disruptions caused by damage to systems, machinery or electrical systems.

  ✅ Paid B. Fresh palm fruit stock 5,912,725 baht and C. Crude palm oil 28,066,657 baht.

Source: Supreme Court of Thailand, Case Nos. 6020–6021/2024 deka.supremecourt.or.th