Deductibles distrust blamed for Thailand's high motor premiums

A reluctance to apply deductibles may be keeping Thai motor premiums unnecessarily high, according to the country's General Insurance Association.

Choosing a deductible, the amount paid by the consumer in the event of an accident before the insurance kicks in, can reduce premiums by 5%- 20%.

But despite this, insurers and drivers remain reluctant to include them in policies, according to Somporn Suebthawilkul, chairman of the GIA's motor insurance committee.

Speaking to The Bangkok Post, Somporn said that deductibles would reduce instances of insureds claiming petty losses and encourage more careful driving as they have to pay the first portion of any repairs.

Deductibles are part of significantly fewer policies in Thailand than in neighbouring Malaysia and nearby Singapore, where they are applied in more than 10% of insured losses, according to the publication.

An additional factor contributing to high motor rates is the fact that premiums are generally based on the kind of car being driven, rather than detailed information about the driver, such as behaviour, Somporn said.