OIC Drafts Compensation Plan for Loss of Vehicle Use During Repairs, Set for Implementation in 2019

At present, complaints concerning compensation for loss of vehicle use during repairs—where the claimant is not at fault and seeks compensation from the other party’s insurer—rank as the most common type of complaint in Thailand’s motor insurance sector.

The Office of Insurance Commission (OIC) therefore convened a meeting to discuss possible solutions, with representatives from the Thai General Insurance Association also participating. The meeting reached a preliminary conclusion that minimum daily compensation rates for loss of vehicle use should be divided into three main categories:

1. Private passenger vehicles with no more than seven seats: not less than THB 500 per day.
2. Public passenger vehicles with no more than seven seats: not less than THB 700 per day.
3. Vehicles with more than seven seats: not less than THB 1,000 per day.

The OIC is currently drafting a Registrar’s order to amend the terms and conditions of motor insurance policies. The new requirements are expected to take effect in 2019 and are intended to help reduce complaints relating to this issue.