Compulsory Motor Insurance in Thailand – Is it enough?

If you’re a vehicle owner in Thailand, you’re probably familiar with the term “Por Ror Bor” – the Thai abbreviation for Compulsory Motor Insurance. While this insurance is mandatory by law, many drivers are unaware of its limitations and why additional voluntary coverage is crucial for comprehensive protection.

Understanding Compulsory Motor Insurance

Compulsory Motor Insurance, as the name suggests, is required for all vehicle owners in Thailand. Its primary purpose is to provide basic protection for third parties in case of accidents. Here’s what you need to know about its coverage:

1. Third-Party Bodily Injury: It covers injuries or death caused to third parties, up to 80,000 baht per person for medical expenses and 300,000 baht per person in case of death or permanent disability.
2. Third-Party Property Damage: It does not cover any damage to third-party property.
3. Personal Coverage: It provides limited personal accident coverage for the driver and passengers, typically up to 80,000 baht per person for medical expenses and 300,000 baht in case of death.
4. Vehicle Coverage: It does not provide any coverage for damage to your own vehicle.

The Limitations of Compulsory Insurance

While Compulsory Motor Insurance fulfills the legal requirement, it falls short in several crucial areas:

1. Insufficient Coverage Limits: The coverage amounts are often inadequate to cover real-world expenses in case of serious accidents.
2. No Property Damage Coverage: It doesn’t cover any damage to third-party property or your own vehicle.
3. Limited Personal Protection: The personal accident coverage for the driver and passengers is minimal.

Why You Should Consider Voluntary Motor Insurance

Given the limitations of compulsory insurance, it’s highly advisable to purchase additional voluntary motor insurance. Here’s why:

1. Comprehensive Coverage: Voluntary insurance can cover damage to your own vehicle, theft, fire, and natural disasters.
2. Higher Liability Limits: It typically offers much higher coverage limits for third-party bodily injury and property damage.
3. Additional Benefits: Many policies include extras like roadside assistance, bail coverage and more.
4. Customizable Plans: You can tailor your coverage to your specific needs and budget by limiting the coverage for own damages or by using a deductible.
5. Peace of Mind: With comprehensive coverage, you can drive with confidence knowing you’re protected against a wide range of risks.

Conclusion

While Compulsory Motor Insurance is a legal necessity in Thailand, it should be viewed as a bare minimum rather than sufficient protection. By investing in voluntary motor insurance, you’re not just protecting your vehicle – you’re safeguarding your financial future against the unpredictable nature of road accidents. Remember, the small additional cost of voluntary insurance can save you from potentially huge expenses in the long run.

Before purchasing any insurance, always compare different policies and providers to find the best coverage for your needs and budget. Safe driving!