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    Educational Information Only

    The content on this page is for general educational purposes and does not constitute legal advice. Every legal situation is unique. For matters involving investigation, arrest, litigation, or formal proceedings, consult a qualified legal professional.

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    Commercial

    Life Insurance Act and Non-Life Insurance Act (overview)

    พระราชบัญญัติประกันชีวิต พ.ศ. ๒๕๓๕ / พระราชบัญญัติประกันวินาศภัย พ.ศ. ๒๕๓๕ · Insurance Act · B.E. 2535 (1992)

    Updated:
    Insurance Act
    Commercial
    B.E. 2535 (1992)

    Overview

    Thailand regulates insurance under two parallel Acts, both B.E. 2535 (1992): the Life Insurance Act (see the entry life-insurance-act-2535) and the Non-Life Insurance Act (see the entry non-life-insurance-act-2535). Each repealed a B.E. 2510 (1967) Act. Both are supervised by the Commission (คณะกรรมการกำกับและส่งเสริมการประกอบธุรกิจประกันภัย) and its Registrar (นายทะเบียน), that is, the Office of Insurance Commission (OIC). Each Act requires a public limited company licensed by the Minister with Cabinet approval; sets Thai-ownership limits with a permission and relaxation power; requires a security deposit and reserves lodged with the Registrar (the Commission may require up to 25% of life policy reserves to be deposited under Life Section 24, and under Non-Life Section 24 the deposit is set by Commission announcement); requires capital funds at a ratio the Commission announces; requires approval of policy forms and premium rates; prohibits unjustified delay in paying claims, leaving the time limits to the Commission's announcement; licenses agents and brokers; and provides a policyholder-protection fund and penalties. A company may not run both businesses (Life Section 33(1); Non-Life Section 31(1)). The Commission may also prescribe agent and broker conduct rules, including operation in line with international supervisory standards (Life Section 79/1(6); Non-Life Section 74/1(6)). This is an overview of two Acts of 131 and 125 sections; use the two linked entries for section-level detail.

    Promulgating authority
    Parliament
    พระราชบัญญัติ
    Enacted
    1992-04-04

    Key Sections
    6

    The 6 sections most frequently cited in practice or relevant to foreigners. Click any section for a deep-linkable page suitable for sharing.

    Section Life 7 / Non-Life 6

    — Insurer licence

    Each Act requires a public limited company licensed by the Minister with Cabinet approval, with the security deposit and capital funds in place within six months of registration, otherwise the approval lapses. See the Life Insurance Act entry (Section 7) and the Non-Life Insurance Act entry (Section 6).

    licensing

    Section Life 10 / Non-Life 9

    — Thai ownership

    Each Act requires at least 75% of voting shares and at least three-quarters of directors to be Thai nationals. The Commission may permit non-Thai holdings up to 49%, and the Minister on the Commission's advice may relax the requirement further, so 49% is not an absolute cap.

    foreign-ownership

    Section Life 24 / Non-Life 24

    — Reserve deposit

    Under Life Section 24 the Commission may require up to 25% of life policy reserves to be lodged with the Registrar. Under Non-Life Section 24 the Commission may require the unearned-premium reserve to be lodged by class of insurance at the rates and rules in its announcement.

    reserves

    Section Life 27 / Non-Life 27

    — Capital funds

    Both Acts leave the capital-funds ratio to the Commission's announcement (Section 27 of each); neither fixes a ratio in the Act itself.

    capital

    Section Life 37 / Non-Life 36

    — Delay in paying claims

    Both Acts prohibit delaying payment without reasonable cause and leave what counts as a breach, including time limits, to the Commission's announcement; neither fixes a number of days. This is not Section 84 of either Act: Life Section 84 is the Life Insurance Fund and Non-Life Section 84 is a civil-fine (ปรับเป็นพินัย) provision.

    claims

    Section Life 33(1) / Non-Life 31(1)

    — Separation of life and non-life business

    A life insurer may not carry on non-life business, and a non-life insurer may not carry on life business.

    structure

    Amendments

    This is an overview entry covering two separate Acts (the Life Insurance Act, 131 sections, and the Non-Life Insurance Act, 125 sections). Each is consolidated as amended by the Act establishing the insurance Commission, B.E. 2550 (2007), its own No. 2 (2008), No. 3 (2015) and No. 4 (2019) amendments, the 2017 corporate-representative criminal-liability amendment Act and the Civil Fines Act B.E. 2565 (2022). See the two linked entries for section-level detail.

    The summaries on this page are plain-English educational paraphrases — not authoritative translations. For the binding wording you must consult the Royal Gazette publication or the consolidated text at the Office of the Council of State. Educational use only — not a substitute for advice from a Thai-qualified lawyer.

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