You are using an outdated browser and your browsing experience will not be optimal. Please update to the latest version of Microsoft Edge, Google Chrome or Mozilla Firefox. Install Microsoft Edge

March 4, 2019

Thailand to Introduce its First Marine Insurance Bill

Subscribe to Updates

In January 2019, the Thai Cabinet agreed to propose the Marine Insurance Bill, as prepared by the Ministry of Finance, to the National Legislative Assembly for consideration. When the bill has been passed by both the House of Representatives and the Senate it will be passed to the monarch to be signed into law, and then published in the Government Gazette  before coming into force.

Thailand does not currently have specific laws governing marine insurance, and the market therefore commonly adopts or refers to English law as the governing law for marine policies. This bill, once enacted, will be used to govern marine insurance in Thailand, and it therefore sets out specific terms in relation to marine insurance (that could also be used for insurance on other modes of transportation if specifically agreed by relevant parties).

The key points introduced in the bill are as follows:

  • Definitions of fundamental terms in relation to marine insurance, and the enforceability of marine insurance contracts in the transportation of goods by sea within Thailand and internationally.
  • The rights and duties of the insurer and the insured, including, inter alia:
    • duties of the insured in presenting risks and disclosing information in the case of commercial marine insurance contracts;
    • rights of the insurer in proving that the insured did not comply with their duty in presenting the risks for non-commercial marine insurance contracts; and,
    • rights of the insurer when the insured acts fraudulently.
  • Specifications of content that must be shown in the marine insurance policy, e.g., signatures and seals, including the ability of the insured to amend the representation before any damage is incurred.
  • The method of calculating the insurable value of the ship, freight, goods, and other insured objects, as well as specific definitions and criteria relating to insurable interest in marine insurance.
  • The criteria to be met for damages that will be covered by marine insurance—and damages that will not be covered, such as willful misconduct by the assured and loss caused by delay—including definitions of total loss and partial loss.
  • The principles and duties for premium payment.
  • The method of calculating the insured’s entitlement to compensation where the insured object is subject to total loss or partial loss, and the compensation method in the event of double insurance.
  • The prescription period for a compensation claim under a direct insurance contract and a reinsurance contract (set at two and six years respectively in the current draft).

Once enacted into law, the new regulations would improve the economic potential of the Thai marine insurance and transportation industries, strengthening the ability of companies in those sectors to compete internationally. 

We will continue to monitor the status of this bill closely and provide updates as they become available. For more information on insurance law, please contact Tilleke & Gibbins at [email protected] or on +66 2056 5555.

Related Professionals

Industries

Insurance

Location

RELATED INSIGHTS​ 

June 30, 2026
Tilleke & Gibbins’ insurance specialists in Bangkok provided Thomson Reuters’ latest country update on Thailand’s regulatory framework for the insurance industry. The country update, which is part of Thomson Reuters’ extensive Regulatory Intelligence offerings, contains information and guidance for insurers active in the Thai market. The guide covers the following topics in detail: Permission to operate; Legal and regulatory considerations for domestic and international insurers; Capital reserve requirements; Investment management and markets; The Office of Insurance Commission’s arbitration system for handling complaints; Creditor hierarchy; Rehabilitation of non-life insurance companies; and Personal data protection requirements for insurers. Thomson Reuters Regulatory Intelligence is a service that provides with curated news, analysis, and data across jurisdictions to help legal, risk, and compliance professionals manage compliance and mitigate global risk. The full Thailand insurance country update is available by subscription to Regulatory Intelligence on the Thomson Reuters website.
Read More
June 30, 2026
Insurance specialists from Tilleke & Gibbins have provided an update to the Vietnam chapter of Thomson Reuters’ Practical Law guide to insurance and reinsurance. The guide is a Q&A-style overview of insurance and reinsurance law in jurisdictions worldwide. The Vietnam chapter provides a detailed overview of the legal framework for the insurance and reinsurance market in the country, covering the following issues: Regulatory framework for insurance and reinsurance Authorization for insurers, reinsurers, and insurance intermediaries Ownership restrictions Ongoing requirements Penalties for noncompliance Sales and marketing of insurance and reinsurance Transfer of risk Reinsurance contracts and risks Contracts and policies Claims Dispute resolution Insolvency Tax Practical Law, a legal reference resource from Thomson Reuters, publishes a range of guides for hundreds of jurisdictions and practice areas. The insurance and reinsurance guide is a valuable resource for legal practitioners, covering numerous jurisdictions worldwide. To view the latest version of the guide, please visit the Practical Law website and enroll in the free Practical Law trial to gain full access.
Read More
June 5, 2026
Thailand’s Office of Insurance Commission (OIC) has opened a public hearing on proposed amendments to the OIC Notification on Criteria for Information Technology Risk Governance and Management for Life Insurance and Non-Life Insurance Companies B.E. 2563 (2020) via the centralized Law platform. The public consultation period runs from May 8, 2026, to June 9, 2026. The proposed amendments aim to elevate the IT risk governance and cybersecurity risk management framework to be more modern and aligned with international standards, with a focus on strengthening cyber resilience, enhancing the role of IT audits, and establishing data governance and data quality controls. The parties affected by these amendments include life insurance companies, non-life insurance companies, and external IT auditors. Key Changes Elevated Role of Board of Directors The proposed notification requires the company’s board of directors to oversee data governance, cybersecurity, and the responsible use of AI. Additionally, the board should include at least one director with IT knowledge or experience. Companies are also required to designate a head of security responsible for information security. The board’s duties are expanded to include oversight of data governance and AI usage, including establishing relevant policies and committees. Enhanced IT Security and Cybersecurity The revised notification consolidates the existing chapters on IT project management, IT security and cybersecurity to reduce redundancy, and introduces significant new measures. These include mandatory multi-factor authentication for material systems, enhanced data security measures such as data masking and data leakage prevention, security hardening requirements, web filtering, and mandatory vulnerability assessment and penetration testing at least annually. New requirements are also introduced for mobile application security, API security, and security measures for emerging technologies such as cloud computing and post quantum cryptography. The cybersecurity framework now encompasses identification, protection, detection, response, and recovery. The draft also introduces source code review
Read More
April 9, 2026
Thailand’s Office of the Insurance Commission (OIC) has published two parallel sets of draft regulatory amendments for public hearing—one governing non-life insurance and the other governing life insurance. The proposed amendments would significantly revise the rules for issuing, offering, and selling insurance policies, as well as the conduct of agents, brokers, and banks. Stakeholders may submit comments until April 25, 2026. The key proposed changes are summarized below. Electronic Policy Delivery by Default Under both draft amendments, electronic delivery would become the default method for delivering insurance policies. A printed copy would be required only if the policyholder expressly opts out, and any such printed copy would be treated as a substitute for the electronic original. For life insurance, this requirement would also extend to coverage summaries and to exclusion documents. The OIC would also retain authority to approve alternative delivery methods for specific types of policies. Misuse of Licenses Both amendments would introduce an explicit prohibition against sales representatives using another person’s name or license, or allowing another person to use their name or license, in connection with the offering of insurance or in sales documentation and policies. Premium Collection Reforms Both amendments would introduce the premium collection reforms outlined below. Premium receipt accounts Insurers must ensure that sales representatives inform customers of the available payment channels, which are limited to channels that remit premiums into the insurer’s account. If a customer pays an insurance premium to an insurer’s employee, an insurance broker, or any other person, and the company acknowledges the payment by issuing an insurance policy or other documentary evidence of insurance coverage, the insurer would be deemed to have received the insurance premium. Written premium collection and refund guidelines Insurers would be required to prepare written internal guidelines covering premium collection and refund policies, risk
Read More