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Jul. 26--New premium rates for compulsory car insurance are to be cut by an average of 10 percent in an attempt to boost the level of vehicle coverage.
Exceptions to the reductions include trucks with trailers. The annual premium on each trailer will increase to 600 baht from 500 baht. As well, the premiums for motorcycles and tuk-tuks will be unchanged as the vehicles are owned mainly by low-income drivers.
The reduction in premiums is aimed at encouraging people to insure their cars and pickup trucks. Only 44.5 percent of the total of 21.28 million registered vehicles of all kinds are covered by third-party insurance.
Montree Vipuntwarapong, deputy director-general of the Insurance Department and chairman of the committee that finalised the rates, said the premiums were reviewed every two years to reflect actual losses and economic circumstances.
The new rates need approval from the department's ...