Coverage beyond borders

Writer: CHAROEN KITTIKANYA and WICHIT CHANTANUSORNSIRI
Published: 25/09/2009
Newspaper section: Business

Thai motorists with compulsory insurance will soon be covered when they cross the border to Laos, Cambodia and Vietnam.

Under the memorandum of understanding on compulsory cross-border motor insurance co-operation clinched yesterday by the four countries, motorists from Vietnam, Cambodia and Laos would also be offered the coverage when they are in Thailand.

However, protection varies depending on where the motorists seek their compensation when they have accidents.

For Thailand, compulsory insurance covers only bodily injury or death of any damaged party, as required under the Protection for Motor Vehicle Accident Victims Act B.E. 2535 (1992).

But in Laos, the compulsory motor insurance covers both bodily injury and material damages, according to Holady Volalath, deputy managing director of Assurances Generales du Laos.

"Although the co-operation in cross-border insurance is in the initial stage, we do hope it will help boost transport, trade and tourism among the four countries," said Chantra Purnariksha, the secretary-general of the Office of the Insurance Commission (OIC).

Each year, cross-border vehicles from Thailand are estimated at 250,000 to Laos, 100,000 to Cambodia and 150,000 to Vietnam, while cross-border tourists from Thailand are estimated at 500,000 to Laos, 250,000 to Vietnam and 250,000 to Cambodia.

The number of cross-border vehicles and tourists is expected to increase substantially during the 25th SEA Games to be held in Vientiane in December.

The co-operation is part of the Asean framework agreement on the facilitation of goods in transit (GIT Agreement), which consists of nine protocols. The agreement includes Asean-wide compulsory motor vehicle insurance, which calls for the establishment of the National Bureau.

The National Bureau would take responsibility for handling and settling claims due to accidents caused by foreign motorists among the member countries.