What does compulsory road insurance cover?

PHUKET: Tourists, expats and Thais all have one thing in common – when they on the road in Thailand, they are all covered by a bare-minimum insurance coverage as required by law. But what does this compulsory insurance coverage provide? How much much does it cost? And how do I make sure I am covered? Read on for the answers to these questions, and more, below.

Minimum insurance coverage is compulsory, but which insurer to choose is in your hands.

QUESTION

I recently went to the Phuket Land Transportation Office (PLTO) to renew the registration for my motorbike. But when I went to pay, the bill included a fee for compulsory insurance. I was happy to pay this as I did not already have comprehensive insurance for my motorbike.

I am familiar with the compulsory third-party insurance in my home country, but what is the coverage provided by the compulsory car and motorbike insurance required by local transportation office to renew the registration of my motorbike and my car, which I will need to do later this year?

– Anton, from St Petersburg.

ANSWER

In 1992, the Thai government passed a law that required all vehicles in the Kingdom of Thailand to have insurance coverage that covers the medical expenses of road-accident victims.

From April 5, 1993, any vehicle owner found guilty of operating a vehicle on a public road failing to have this insurance faces a fine of B10,000 to B50,000.

You can get compulsory insurance at the Land Transport Office when you come to renew your annual vehicle registration, or you can take out your own policy with a private company. BUT you must have the minimum insurance coverage before your vehicle will be registered – or the registration renewed – at the Land Transport Office.

When registering your car or motorbike, or renewing the registration, you can choose from several insurance companies that offer the compulsory insurance coverage.

Of these policies offered via the PLTO, the compulsory insurance for a motorbike can cost from B300 plus tax (about B323) up to B600 per year. For cars, the compulsory insurance available at the PLTO can cost up to about B900 per year.

The compulsory motor insurance for cars or motorbike covers only bodily injury of road-accident victims. Property damage is not covered.

But it covers all persons involved in an accident, including the driver and the passengers in the vehicle deemed at fault.

The basic coverage for medical expenses of no more than B30,000 per person and B35,000 per person for dismemberment. Victims can claim against this insurance immediately at the hospital. There is no need to prove who is deemed responsible for the accident.

However, people who are deemed not at fault of the accident in which they were injured can claim up to B50,000 person, and in case of loss of life the next-of-kin may receive up to B200,000 per death.

These maximum compensation payments for people who are deemed not at fault in the accidents they were injured in may increase in April.

– Ms Saowanee Khewphadee, Chief, Compulsory Insurance Division, PLTO.