Recently, there has been talk that to get cheaper insurance premiums, one should buy from abroad, such as Singapore, which is a financial hub offering a wider variety of products. However, questions remain about whether claims will be honored as promised if losses occur.
This issue has sparked broad debate, prompting Nusara Assakul Bunyatpiyaphot, president of the Thai Life Assurance Association, to warn that purchasing life or health insurance through online or digital platforms offered by foreign companies or legal entities not authorized to conduct insurance business in Thailand may involve several risks, such as
If you purchase insurance or hold a policy from an insurer not authorized in Thailand and encounter issues with claims, you cannot file complaints with the Office of Insurance Commission (OIC) because it falls outside Thai law. Moreover, if that company goes bankrupt, you cannot access Thailand's life insurance fund at all.
Additionally, when buying insurance abroad, whether life or non-life insurance, currency exchange rates must be considered, as in some cases, the value may not be worth the cost.
According to Thai law, the OIC has set penalties for agents or solicitants who encourage the public to buy life insurance from foreign insurers not authorized to operate in Thailand. This violates the Life Insurance Act B.E. 2535 (1992) and its amendments, Section 83, punishable by imprisonment up to six months, a fine not exceeding 50,000 baht, or both.
In summary, all insurance policies and companies operating in Thailand must meet OIC standards. Foreign companies without OIC authorization are difficult to assist in disputes or claims. However, Thai individuals with funds abroad who can accept the risks may choose to purchase insurance overseas, understanding the laws, complaint channels, and specific conditions of those countries.
The Thai Life Assurance Association notes three preliminary checks before purchasing insurance:
1. Verify before paying: Always check the licenses of companies, agents, and brokers via the OIC website or the LINE application named “OIC Smart.”
2. Too good to be true may be suspicious: If premiums are unrealistically low or terms too favorable, verify whether the company truly exists and how credible it is.
3. Safer to buy from Thai companies: Purchase policies only from companies authorized in Thailand to have legal rights for claims or follow-ups under Thai law, with OIC providing additional support if problems arise.
Finally, buying insurance in Thailand may facilitate easier problem resolution and dispute handling. However, for high-net-worth individuals with funds overseas, purchasing insurance abroad can be a diversification strategy depending on their life planning.
Source: TLAA, OIC
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