Thailand approves 10.5 billion baht in flood relief
The cabinet has approved flood assistance alongside debt-payment suspensions, soft loans and tax measures, following deadly flooding that disrupted manufacturers.
Thailand’s cabinet approved 10.5 billion baht in flood relief on Tuesday, 20 October, alongside debt-payment suspensions, soft loans and tax measures for those affected by flooding.
The approval follows floods that disrupted automotive manufacturing and parts suppliers. Reuters reported that at least 80 people had died, while Bangkok was declared a disaster-affected zone in September after exceptionally heavy rainfall.
Relief follows earlier assistance payments
The government had already paid more than 5 billion baht in flood assistance before the latest approval, government spokesperson Ekkapob Pianpises told a briefing.
A finance ministry official said the cabinet had also approved tax relief and customs duty exemptions for flood victims. These sit alongside the debt-payment suspensions and soft loans announced as part of the government’s response.
The measures combine direct financial assistance with support on borrowing and taxes. For affected households and businesses, those are distinct forms of help rather than a single cash payment.
Flooding hits Bangkok and manufacturers
Nearly 300 millimetres of rain fell on Bangkok over three days in September, roughly matching the amount the city typically receives during the entire month. The capital was subsequently declared a disaster-affected zone.
Flooding also interrupted operations at automakers and parts suppliers, extending the consequences beyond damage to homes and disruption in affected communities.
Despite those interruptions, Bank of Thailand Deputy Governor Piti Disyatat told Reuters the previous week that the floods would not significantly affect the wider economy. He said economic growth was expected to reach 2.3 per cent or higher this year.
Separate insurance scheme covers homes and disaster deaths
Separately, The Nation reported cabinet approval of a 15.5 billion baht national disaster-insurance scheme. That programme concerns insurance premiums and should be distinguished from the 10.5 billion baht flood-relief allocation.
The insurance cover runs from 1 October 2026 to 1 October 2027 and addresses floods, windstorms and earthquakes. The Department of Disaster Prevention and Mitigation will implement it with the Office of Insurance Commission and the Thai General Insurance Association.
Of the insurance budget, 15 billion baht is allocated to group residential policies covering approximately 30 million homes. The remaining 500 million baht is for group accident insurance covering disaster-related deaths.
For flood damage, residential policies provide up to 100,000 baht per home per incident, comprising an initial 10,000 baht payment and up to 90,000 baht in additional compensation. Windstorm and earthquake cover carries the same maximum, with an initial payment of 5,000 baht.
The eligibility distinctions matter for residents: residential cover applies to legal homeowners and can also extend to occupants of structures outside the civil-registration definition of a home, provided an authorised official certifies regular habitation. Death benefits of 2 million baht per person apply to Thai nationals with a 13-digit national identification number.
DDPM director-general Theerapat Kachamat described the insurance programme as a shift towards managing disaster risks in advance, intended to make compensation faster and reduce unpredictable demands on government relief budgets.
