THAI 1991 THIRD PARTY LAW IS FAILING CONSUMERS, SAYS THAI ASSOCIATION

Thailand’s Foundation For Consumer Rights has proposed that the country’s existing third-party compensation law, enacted in 1992 with the aim of protecting the victims of vehicle accidents, be amended, on the grounds that the law as currently written is not working. Saree Ongsomwang, representing the Foundation, said that victims were not seeking assistance under the Motor Vehicle Accident Victims Protection Act, while those who did encountered problems. She alleged that red tape and unfair treatment meant that many victims turned instead to the services of the universal health scheme, the social security fund or the state official welfare fund. It was also claimed that, as a result, “private car insurance companies have been reaping profits for 10 years”. Motor insurers in Thailand had a loss ratio of about 50% between 1999 and 2004, according to the Thai Department of Insurance.