Kathmandu. The Office of Thailand’s Insurance Regulatory Insurance Commission (OIC) has significantly increased the coverage limit for compulsory and voluntary motor insurance.
According to the new rules, compensation of up to 2 crore baht (about Rs 8.7 crore) will now be paid per accident. However, the move is aimed at ensuring proper safety of victims of major road accidents. There will be no increase in premium.
According to OIC Registrar’s Order No. 51÷2568, the Mandatory Motor Insurance Act has now set a coverage limit of 20 million baht per accident for all types of vehicles.
This will be implemented immediately. That is, it will apply to both the existing policy and the new agreement. However, insurance companies will have to update the new folicy forms and conditions from January 1, 2026.
In addition, the death or permanent total disability compensation limit for voluntary motor insurance in the third party liability category has been fixed at a minimum of 20 million baht. This will be applicable to the new policies issued from January 1, 2026. The same rule will apply to electric vehicle insurance.
In early 2020, the OIC had raised the compensation limit for mandatory motor insurance from 300,000 baht per person to 500,000 baht. However, the per accident maximum limit was 50 lakh baht for cars with less than 7 seats and 10 million baht for cars with more than 7 seats.
On the other hand, the coverage limit of most policies for voluntary motor insurance was a maximum of 10 million vat. As a result, it was not possible to provide adequate compensation to many victims of major accidents.
Oic Assistant Secretary-General Paibun Piammetta said the new order was in line with reality and would ensure proper safety for accident victims. “Most importantly, the coverage limit has been increased without increasing the premium,” he said.
Experts say the move will strengthen Thailand’s road safety and consumer protection systems. On the one hand, the victims of major accidents will get adequate compensation and on the other hand, the policyholders will not face any additional financial pressure. As a result, it is considered a positive and necessary reform for both the insurance sector and society.
