Some motor premiums to drop

General news - Thursday December 13, 2007

INSURANCE / AUTOMOBILE COVERAGE

Some motor premiums to drop

PHUSADEE ARUNMAS

Premiums for compulsory motor insurance will be reduced starting on March 1, the Office of the Insurance Commission (OIC) announced yesterday.

According to Chantra Purnariksha, the office's secretary-general, the new rates would apply to three types of vehicles: passenger cars with no more than seven seats, coaches with up to 15 seats, and trucks smaller than three tonnes.

The new premium for passenger cars will be 600 baht, down from 700 baht. The rate for coaches will decline to 1,100 baht from 1,200 baht, and for trucks to 900 baht from 1,000 baht.

Ms Chantra said that the new insurance acts now awaiting royal endorsement also would increase protection and medical expenses for motorists under the compulsory insurance programme.

Medical expenses have been raised to 50,000 baht from 30,000 baht, with protection in case of death or permanent disability to increase to 100,000 baht from 80,000 baht.

According to Mrs Chantra, apart from higher protection, the OIC is also committed to upgrading services, particularly the electronic claims system, to speed up reimbursements to motorists from insurance firms.

In a related development, the OIC has joined with the Thai Life Assurance Association and the Thai General Association to promote low-priced travel insurance coverage for those who travel between Dec 20 and Jan 1.

The premiums will cost as little as 15 baht per day for protection that is worth up to 100,000 baht.

Eleven insurance companies have already agreed to participate in the programme.

Bangkok Post