Jurisdiction - Thailand
Thailand – Legal Grounds For Refusal Of Insurance Claims By Law.

7 April, 2014



No Insurable Interest

According to Section 863 of the Civil and Commercial Code of Thailand (CCC), a contract of insurance is not binding on the parties unless the assured has an interest in the asset or event insured against.

A common example is where the insured does not have any ownership or possessory right on the property insured, the insurer is able to reject the claim since the insured is not affected in the event of loss or damage.



At the time of applying for, or renewing, the insurance policy, the insured is under a duty to disclose relevant facts and information. This disclosure would have a bearing on the insurer, on whether to raise the premium or to refuse to enter into the contract.

If the insured knowingly omits to disclose or provides false statements in regard to such facts, the aforesaid contract shall be voidable and the insurer may be able to reject the claim on grounds of non-disclosure (Section 865 of the CCC).

However, such right of avoidance will extinguish if it is not exercised within one month from the time when the insurer has knowledge of the ground of avoidance, or within five years from the date of the contract (Paragraph 2 of Section 865, CCC).

Failure Of Premium Payment

The Thai Supreme Court has previously ruled that paying insurance premium was a reciprocal obligation of the insured according to Section 369 of the CCC. If the insured had defaulted in payment of the insurance premium, the insured shall be deprived of the right to claim damages. In the case where compensation has already been paid to the insured, the insurer is entitled to recover such compensation. 

Late Notification

When a loss occurs from an insured risk, the assured or the beneficiary must give notice thereof to the insurer without delay (Section 881 of the CCC).

However, the consequence of late notification is not expressly provided for. The court has rendered judgment that even though the insured had failed to comply with his duty to promptly notify the insurer upon discovery of the loss, the insurer is not discharged from his liability to compensate the victims. However, the insurer has the right to claim compensation for any damage suffered thereby.

Notwithstanding the above, the insurer may refuse to pay compensation on account of late notification, if such ground is expressly provided for in the insurance contract.


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For further information, please contact:


Yodwarat Tedkham, Partner, ZICOlaw

[email protected]


Chulapong Yukate, ZICOlaw

[email protected]

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