News eDaily24 Nov 2015

Thailand:Insurers keen to raise and liberalise auto premiums

24 Nov 2015

The Thai General Insurance Association is eyeing premium increases for some vehicle categories, to better reflect actual repair costs.

The association's President, Mr  Anon Vangvasu, said that premiums should be increased for cars with higher repair costs, reported The Bangkok Post. Statistics show that the highest costs are for repairs to vehicles with engines below 1,500cc and for pickup trucks

Mr Anon also said that the association wants the Office of the Insurance Commission to allow insurers to set their own premium rates. Prices for automobile parts have risen by about 10% every year, but insurance premiums have not been adjusted accordingly.

Mr Anon said that currently premiums are listed in five categories, based on the price range of the vehicles. These categories are:

  1. Vehicles priced over THB5 million (US$139,500), such as Ferrari or Jaguar;
  2. Vehicles priced from THB1.5 million, such as Audi, BMW, Lexus;
  3. Vehicles priced from THB1 million, such as Chevrolet, Fiat and Ford;
  4. Vehicles priced from THB700,000, such as  Toyota Corolla and Sport Rider; and
  5. Vehicles priced below THB700,000, such as Honda City, Nissan NV, Nissan Sunny and Toyota Soluna.

The costs of repairs and parts for vehicles in groups four and five are quite high, he said.

The association has found that some car makers do not sell parts to general repair shops, with their cars repaired only by authorised maintenance centres, resulting in higher costs.

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