Insurance in Thailand - The Ins and Outs of the Tricky Business

We all know what insurance is - it's the means of guaranteeing protection or safety of your property, health or well being. Insurance comes in all forms, whether it be car, health, life, boat, motorcycle... the list is endless! Insurance in Thailand is the same in many other parts of the world, some of it is required and yet other forms are optional.

Vehicle insurance in Thailand is mandatory, you can face a hefty fine if you drive without it. There are two forms of vehicle insurance, compulsory and voluntary. Compulsory insurance is the basic form, and is easy to tell when a vehicle is missing it. When you purchase this type of insurance, you must place a sticker in the top left corner of your vehicle window. Police can easily tell when this is missing.

Voluntary insurance comes in 4 classes, Class 1, 2, 3 and 3+. Class 1 covers all accidents, no matter who's fault. Class 2 covers accidents to third parties only and will cover your vehicle if it was damaged by fire or stolen. Class 3 covers only third parties, similar to liability insurance in the United States. Class 3+ covers third parties and limited coverage to your vehicle.

Health insurance in Thailand is comparatively better than that in the United States. Although, if you can't show proof of insurance in advance, some hospitals might not admit you for care. Thailand has become a "medical tourism" destination, meaning foreigners often come to Thailand for cheap health care. Doctors in Thailand work for less pay than in the United States, but they do better work too. This could be because doctors in Thailand get into the profession out of interest, not greed. Thailand has many independent companies that offer health care coverage. The United States also has companies work in Thailand to bring coverage to the people. Premiums and maximum coverage are lower in Thailand than most countries, leading to the lower prices overall. One important detail to know is that Thai health insurance companies may refuse to renew your policy, which is renewed year by year. Thai law allows this practice.

Your insurance premium is set by age group, although if you file a claim you can expect to pay more. This sets up a reward system, if you take care of yourself, you will pay lower rates. If you get sick on a regular basis, your rates will go up.

Like in many countries, pre-existing conditions are not covered. Some exceptions to your policy may be sexually transmitted diseases, diseases caused by alcohol or stress, or an injury caused by riding a motorcycle taxi or playing dangerous sports. Dental coverage is usually included onto your health care plan and varies by company and policy. Life insurance in Thailand serves the same purpose as in other parts of the world, it will provide an income replacement to the people on your policy if you die. Thailand has two main categories of life insurance, term and permanent. Term policies only cover you for a specific amount of time, while permanent policies will cover you for life.

Insurance in Thailand has its ups and downs, and in many ways is similar to that of most European countries and the United States.