What is Compulsory Motor Insurance (Por Ror Bor)? Differences from Voluntary Insurance

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For every car owner in Thailand, the term "Por Ror Bor" (พ.ร.บ.) is frequently heard, especially when it is time to renew the annual car tax. However, many drivers still confuse this Compulsory Motor Insurance with standard Voluntary Insurance (Type 1, 2+, 3+), unsure of how they differ and why having both is necessary. This article clarifies these details.

1. What is "Por Ror Bor" (Compulsory Motor Insurance)?

"Por Ror Bor" refers to the "Protection for Motor Vehicle Victims Act." It is a mandatory insurance policy required by law for every vehicle registered with the Department of Land Transport. Failure to possess a valid policy results in a fine of up to 10,000 THB, and more importantly, the vehicle owner cannot renew the annual car tax.

The primary objective of this compulsory insurance is to provide protection and financial aid to "people" affected by car accidents—whether they are drivers, passengers, or pedestrians—regardless of who is at fault. This ensures that victims receive timely medical treatment.

Coverage Details (Current Rates) Compulsory Motor Insurance covers only bodily injury and death; it does not cover property damage or vehicle repairs. Coverage limits are divided into two categories:

1. Preliminary Compensation (Paid immediately without proving fault):
   • Actual Medical Expenses: Up to 30,000 THB/person.
   • Death, Disability, or Loss of Organ: 35,000 THB/person.
   • (Combined limit if both occur: Not exceeding 65,000 THB).
2. Maximum Compensation (For the non-at-fault party after fault is proven):
   • Actual Medical Expenses: Up to 80,000 THB/person.
   • Death or Total Permanent Disability: 500,000 THB/person.
   • Loss of Organ: 200,000 – 500,000 THB/person (depending on severity).
   • Daily Compensation (Inpatient): 200 THB/day (Max 20 days).

2. What is Voluntary Motor Insurance?

Voluntary Motor Insurance refers to the policies we choose to purchase additionally from insurance companies, commonly known as Type 1, Type 2+, Type 3+, or Type 3. The law does not mandate this insurance, but it is crucial for financial risk management.

3. Key Differences between Compulsory and Voluntary Insurance

To visualize the distinction clearly:

• Legal Requirement:
  • Compulsory (Por Ror Bor): Mandatory. You cannot legally drive or renew tax without it.
  • Voluntary: Optional. It is not legally required, but highly recommended.
• Scope of Coverage:
  • Compulsory: Covers only "People" (Life and medical expenses). It does not repair your car or the other party's car.
  • Voluntary: Covers both "People" (expenses exceeding the Compulsory limit) and "Property" (repairs to your car, the other party's car, and third-party property depending on the policy type).
• Coverage Limits:
  • Compulsory: Limited caps set by law (e.g., max 80,000 THB medical for the victim), which may be insufficient for serious accidents.
  • Voluntary: Much higher limits (hundreds of thousands to millions of Baht), acting as a buffer for costs that exceed Compulsory insurance limits.

Conclusion

Compulsory Motor Insurance (Por Ror Bor) is a basic welfare measure enforced by law to ensure that accident victims have access to medical funds. However, relying solely on Compulsory insurance is often inadequate due to high modern medical and vehicle repair costs. Having Voluntary Motor Insurance alongside it provides complete peace of mind and protects your finances from unexpected events.

References:

1. Office of Insurance Commission (OIC): Information regarding protection for motor vehicle victims and compensation rates.
2. Road Accident Victims Protection Co., Ltd.: Details on the Protection for Motor Vehicle Victims Act and claim procedures.

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