Thailand Insurance Information

CIA link to demographic/economic data on Thailand

General Thailand Insurance Information

• Compulsory Insurance:
  
  1. Workers’ Compensation;
  2. Third Party Automobile Liability.
• Non-Admitted Insurance:
  Permitted except for compulsory coverages. Insured may directly deal with a non-admitted Insurer - Brokers and Agents may not place risks outside of Thailand.
• Policy Wordings & Rates / Tariffs Controlled:
  Property Damage / Business Interruption, Automobile, Employer’s Liability, Workers’ Compensation, and Personal Accident coverages are subject to tariff regulations. All wordings are subject to approval by the Insurance Commissioner.
• Policy Language:
  Thai or English.
• Types of Insurance Restricted to Government Institutions:
  Workers’ Compensation.
• Policy Currency:
  baht (THB).
• Currency Restrictions / Exchange Controls:
  Premium remittances in excess of US$ 5,000 abroad require Central Bank approval – usually approved.
• Policy Period:
  Annual. Long Term Agreements (LTAs) are available for Industrial All Risks policies at varying discounts depending on the length of term.
• Cancellation Provisions:
  Generally 15 day notice by Insurer. Check the policy cancellation provisions of each policy as conditions will vary.
• Premium Taxes, etc. paid by Insured:
  Non-life premiums are subject to VAT at a rate of 7% with the exception of Marine business which is zero. Stamp Duties are payable on all non-life policies at a rate of 0.4% and on reinsurance policies at THB 1 per policy. Personal accident policies are assessed a special business tax of 2.75%. A levy of up to 2% applies to compulsory motor insurance to fund the motor accident victims’ fund. All taxes are charged to the insured and paid to the government monthly. Reinsurance is ceded net.
• Insurance Companies:
  Maximum foreign equity ownership 25% at present. The rules are being relaxed and phased in over a period of 10 years.
• Brokers:
  Brokers and Agents operate in the Thai market.
• Brokerage Commissions:
  Commissions range from 13-20%. Commissions can be paid to foreign broker not locally licensed subject to a withholding tax. The commission structure is controlled by the Insurance Commissioner.
• Broker of Record Letters:
  Common and usual with commercial / industrial business.
• Reinsurance:
  No restrictions other than compulsory cessions to Thai Re for most lines (5% for all non-life lines except for Product Liability, Automobile, Professional Liability / Indemnity and Aviation risks; 10% for large fire risks).
• Local Natural Hazards:
  Typhoon, Earthquake, Storm / Tempest.
• Other Information:
  

Property Insurance

• Fire:
  Standard fire perils include - fire, lightning, explosion. Aircraft, earthquake, flood, storm / tempest, burst water pipe, riot / civil commotion, malicious damage, windstorm / hurricane, vehicle impact are available for an additional premium charge.
• All Risk:
  Available. Used principally for Contractors related risks.
• Coinsurance:
  100%.
• Blanket Insurance:
  Available.
• Business Interruption:
  UK Loss of Profits and U.S. Gross Earnings forms are available.
• Replacement Cost:
  Available.
• Discount for fire protection equipment / systems: Available.

Terrorism insurance is now available in the market for risks in the southern provinces of the country under a scheme organized by the Commerce Ministry.

Boiler & Machinery / Machinery Breakdown / Engineering

• Wordings:
  Local adaptation of German wordings. UK and U.S. forms can be written subject to local approval. Machinery Breakdown, Business Interruption and Boiler Explosion can be insured. Inspections are not required.

General / Public Liability

• Available Wordings:
  Comprehensive General / Public Liability forms including Product Liability. Product Recall coverage is not locally available.
• Comments:
  Occurrence and Claims Made forms are available. Third Party Environmental/Pollution risks are insured on a ‘sudden and accidental’ basis – no separate wordings exists.

Automobile / Motor

• Compulsory Limits:
  Bodily Injury: Baht 50,000 per person / Baht 5,000,000 per accident; Property Damage: not compulsory.
• Comments:
  Coverage applies to Insured and any licensed individual driving with Insured’s permission. Passengers are deemed Third Parties except for family members.

Workers’ Compensation

• Comments:
  This compulsory and tariff rated coverage applies to all employees working around metropolitan areas, and provides benefits for workers’ employed abroad, medical expenses and occupational diseases. Employees have to right to sue the employer under the Thai Code of Civil Law.

Marine

• Available Wordings:
  Forms follow the Institute of London Underwriters’ clauses. War Risks and Strikes rates follow London scale.

Crime

• Available Coverages:
  Fidelity (Blanket and Scheduled), Theft, Burglary and Surety. Ratings are subject to regulated minimums / maximums.