The payout will be followed by compensation of up to THB90,000 ($2,675) for actual losses under a government-funded insurance scheme covering about 30 million households nationwide.

The scheme took effect on Oct. 1, after severe flooding in Bangkok and several surrounding provinces caused extensive property damage.

Speaking recently at the Department of Disaster Prevention and Mitigation (DDPM), Thai Prime Minister and Interior Minister Anutin Charnvirakul said the programme represented an important step towards establishing a system of "advance financial protection" to help people proactively cope with losses.

People wade through a flooded street after heavy rain in Bangkok, Thailand, Sept. 27, 2026. Photo by AP

The annual insurance scheme provides maximum compensation of THB100,000 per incident for damage to homes caused by floods, storms or earthquakes, as well as THB2 million for each death caused by a disaster.

For storm- and earthquake-related disasters, the initial payout is THB5,000 with additional compensation of up to THB95,000 for damage incurred. Households cut off by flooding for more than seven consecutive days are also eligible for a THB10,000 payment.

The program operates under a mechanism in which the Thai Government uses the national budget to centrally purchase insurance from 11 private insurers, coordinated by the Thai General Insurance Association (TGIA).

The mechanism is designed to automatically trigger compensation and shorten the time needed to provide assistance to people in disaster-affected areas, without imposing any costs on households.

Thailand's GDP last year ranked third in Southeast Asia, behind Indonesia and Singapore, according to the International Monetary Fund.