Definition of insurance?
Insurance is one way you manage risk. When you buy insurance, you transfer risk to the underwriter in exchange for an agreed-upon fixed amount (premium). In the event of an accident or other insured event, the insurer will pay you as stated on the policy. Of course, insurance must be purchased before an accident or some other covered event occurs.
What does car insurance mean?
Vehicle insurance (automobiles and motorcycles) provides coverage for financial loss due to vehicle accidents or other insured events. Depending on the type of insurance chosen, it may cover damage to the insured vehicle, as well as damage or loss to third-party property or persons due to the use of the insured vehicle.
What is a car insurance contract?
A car insurance contract is an agreement between an insurance company and the insured. The insured pays compensation for losses related to the insured vehicle after the events specified in the contract. The insured must pay a fixed premium at the outset to be covered.
What is compulsory insurance (compulsory insurance)?
Under Thai law, all vehicles must be covered by the compulsory insurance. It covers the basics, mainly injuries to occupants of the vehicle (including the driver), and injuries to others as a result of the use of the vehicle. The amount of insurance is very limited. The policy maximum is only 500,000 baht and does not cover any damage to the covered vehicle or other vehicles. Roojai strongly recommends that every driver purchase voluntary insurance in addition to the mandatory insurance.
Who is covered by compulsory insurance?
Anyone injured or killed in an accident involving a covered vehicle.
What does compulsory insurance cover?
- Medical expenses in the event of bodily injury up to THB 80,000 per person
- Loss of vital organs, 200,000-500,000 baht per person
- Compensation for death and permanent disability is up to THB 500,000 per person.
- Daily compensation for hospitalization, 200 baht per day (up to 20 days)
What is Voluntary Auto Insurance?
Voluntary insurance is optional and not required by Thai law. Depending on the type of insurance, it may include damage to the insured vehicle, whether or not the driver is at fault; damage to a third-party vehicle if the driver of the insured vehicle is at fault; liability for injury from an accident in which the driver is at fault; loss or damage caused by theft, fire or natural disaster. Voluntary auto insurance is divided into five categories.
Category 1: Comprehensive insurance, which pays for damages in the event of an accident, fire, theft, or natural disaster, regardless of the negligence of the insured vehicle, and also for liability to third parties (property damage) when the driver is at fault and bodily harm).
Category 2: Covers damage to the insured vehicle only in the event of fire and theft, and covers liability to third parties (property damage and personal injury) in the event of driver fault.
Category 3: Covers liability to third parties (property damage and personal injury) only if the driver is at fault.
2+ classes. Pays for damage to an insured vehicle, regardless of fault, as long as there are other confirmed vehicles involved in the accident, as well as damage caused by fire, theft, or flooding. It also includes liability to third parties (property damage and personal injury) when the driver is at fault.
3+ classes. Covers loss of an insured vehicle, regardless of fault, as long as there are other confirmed vehicles involved in the accident. It also assumes liability to third parties (property damage and bodily injury) when the driver is at fault.
How important is voluntary insurance?
In addition to the mandatory insurance required by law and the insurance required to renew road tax, voluntary insurance is highly recommended. Unlike third-party property insurance, which is required by law in many other countries, there is no such provision in Thailand. In the event of an accident, if you are at fault, you are liable for damage to someone else’s property, which is not covered by the compulsory insurance. Also, if you injure someone while using your car, compulsory insurance is only responsible for damages up to 300,000 baht. You will be responsible for any medical expenses, or compensation over THB 200,000 that the court may award. For these reasons, Roojai strongly recommends that you purchase at least the third type of insurance, which only covers losses to third parties and injuries to third parties.
If you want to insure your vehicle against damage, then Type 1 and Type 2+ are the two types of coverage you should consider.
Does my voluntary insurance include compulsory insurance (compulsory insurance)?
Your voluntary insurance policy is separate from your compulsory insurance policy, but you can buy both at Roojai.
Which type of coverage is the best?
“Type 1 Insurance” provides the most comprehensive coverage. Type 1 insurance will cover your vehicle in most cases: Accidents involving other vehicles (regardless of your fault), no sand and other Accidents of vehicles (eg, scratches while parking), natural disasters (floods, storms, etc.), fire and theft.
For newer cars worth more than 200,000 baht, Category 1 insurance may be the best option. Other types of insurance may be more suitable (and cheaper) for older cars worth less than 200,000 baht.
Does the insurance continue to be valid after the car is sold or transferred?
When the car is transferred to someone else, the new owner will be covered as specified in the policy. Insurance companies must continue to cover for the remainder of the policy’s life. If the owner does not cancel the policy before the transfer and has purchased a designated driver plan, the owner must notify the insurance company of the new driver’s details so that the premium can be adjusted based on changes in risk conditions. Also, if the driver’s name does not match the name on the policy, the new owner will not be liable for the additional deductible.
If the insured sells the car to someone who works as a car dealer, car rental, car repair, or car maintenance, the policy will cease to be in effect on the date and time of that sale.
What is the deductible?
The policy deductible, which is the maximum amount you will have to pay in the event of damage to your vehicle, only applies if you are at fault or have no identified third party responsible for the accident. The deductible does not apply if you are not at fault and a responsible third party is identified.
What is a No Claims Bonus?
“No Claims Bonus” (NCB) is a discount given by an insurance company in the event of a no-fault claim. The following applies.
- A 20% discount on renewals if the driver has no claims within 1 year.
- A 30% discount is available on renewal if the driver has no claims for 2 years.
- If the driver has no claims for 3 years, a 40% discount is available on renewal.
- 50% discount on renewal if the driver has no claims for 4 years.”
Where can I find my No Claims Discount record?
You can find your no-claim discount record on your current insurance company’s policy. Some insurance companies will send you an invitation to renew your policy, notifying you of the no-claim discount before the policy expiration date.
What is road tax?
Road tax is the tax you need to pay each year at your local Ministry of Land Transport office. Tax rates are based on engine size (cubic meters, cc). To pay the tax, you need to bring a valid certificate of compulsory insurance (compulsory insurance) and a car registration certificate (blue book). Road tax is issued in the form of a sticker that you must display on your windshield to prove that the tax has been paid and is within the validity period.
How to renew road tax online?
The information you have to prepare is only the policy number of the compulsory insurance (compulsory insurance). We recommend that you renew your road tax in advance (up to 3 months) before it expires. Please note that the online service is currently only available in Thai.
Do insurance companies pay road tax while providing insurance?
Currently, Roojai does not provide road tax service, but we are working on it.
