Not sure how Voluntary Motor Insurance works?
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In Thailand, there is a mandatory, inexpensive insurance policy required by law for all motor vehicles. This is known as Compulsory Motor Insurance or “Por Ror Bor”. The act, which came into effect in 1993, requires all cars powered by electric engines or other types of energy to not only adhere to regulations by purchasing the policy, but also enforce an annual renewal of the policy, whereby failure to do so results in a fine of no more than ฿10,000.
The insurance provides coverage for everyone affected by car accidents, no matter if you are the driver, passenger or pedestrian. In cases where there is death, the deceased will be monetarily compensated. The objectives are apparent, as it aims to stimulate hospital visits after a motor accident. This is due to the reduction in payments required for treatments for everyone, as well as providing a better chance of recovery through timely medical attention. Furthermore, as the coverage is given as welfare from the government, it not only guarantees payments to hospitals, but also serves as a gesture of support and relief for suffering victims and families.
Although Por Ror Bor is enforced, it does not provide coverage for any damages to the vehicle. Hence, it is recommended to purchase a Voluntary Motor Insurance policy in conjunction with the Por Ror Bor. Moreover, Por Ror Bor merely covers medical expenses up to ฿80,000 per person, loss of vital organs between ฿200,000 and ฿500,000 per person, death and permanent visibility at ฿500,000 per person and daily compensation for ฿200 and up to 20 days.
In summary, Por Ror Bor can help significantly in terms of offsetting costs of treatment following a road accident, whereby its purpose of improving the chance of recovery and compensation for bereaving families should be applauded. However, having one motor policy is not sufficient and it is highly recommended to have Voluntary Motor Insurance too.
To learn more about Motor Insurance, click here.