The Motor Accident Victims Protection Act B.E. 2535 (A.D. 1992) made third-party motor insurance compulsory for all vehicle owners except those for motorbikes, modified farm trucks, and modified samlors.
Under this Act, all owners are required to obtain insurance for injuries or death caused by their vehicles. Those injured will now be able to claim an initial payment of Baht 50,000 for medical coverage and Baht 80,000 for any instance of the following:
- Blindness, deafness, dumbness, or the loss of ability to speak or loss of the tongue.
- Loss of a reproductive organ.
- Loss of an arm or any other organ.
- Physical or psychological deformity.
- Permanent incapacitation.
The initial payment must come from either the insurance company or the Third Party Insurance Compensation Fund within seven days of the accident. The Compensation Fund, supported by the government and the insurance industry, will provide protection for injury/death caused by those otherwise uninsured, e.g., stolen vehicles, drivers without third party insurance, and accidents in which insurance firms refuse payment.
Drivers are required to renew their vehicle registrations once a year, and part of this process is obtaining a new insurance sticker. In addition to auto insurance, Thailand offers life, medical, auto, fire, and other kinds of insurance.
There are numerous life and non-life insurance companies active in Thailand. Most people prefer to appoint a broker who can play a supportive role almost as if a brokerage company were in fact the insurance department of your company. You will need to obtain two different insurance policies. One is the mandatory Thai insurance required by the State and costing about 1,600 Baht. The other is a First Class Insurance policy covering the cars occupants, damaged property, your own vehicle and adequate liability. This First Class policy usually costs about 20-30 Thousand Thai Baht for the first year. If you have no claims, it is reduced by 20% the second year and again by 20% for the third.
It may also be a good idea to look into a road coverage policy in case you break down on the highway in some remote location. I understand that these are available for about Baht 3,000 per year.