With effect from 20 March 2025, insurance companies will be able to introduce a copayment clause that will apply to health insurance policy renewals and new policies.
The insurance industry in Thailand is undergoing this significant transformation in March 2025 due to rising health insurance premiums, medical inflation, and unnecessary medical expenses. The copayment policy was developed by Thailand’s Office of Insurance Commission (“OIC“) in collaboration with the insurance sector, under the New Health Standard pursuant to OIC Order No. 14/2564 RE: Criteria for Approval of Standard Forms and Wording of Health Insurance Riders for Life Insurance Companies and OIC Order No. 15/2564 RE: Criteria for Approval of Standard Forms and Wording of Individual Health Insurance Policies for Non-Life Insurance Companies (“OIC Orders“), which have been in effect since November 2021.
To control rising medical costs and reduce unnecessary claims that impact premium rates, the OIC Orders have introduced the development of alternative health insurance products to manage healthcare expenses while safeguarding insured rights. The key measures include:
- developing alternative health insurance products to reduce unnecessary medical expenses; and
- encouraging self-medication for minor illnesses or obtaining prescriptions to purchase medicine directly from pharmacies.
The copayment policy is a targeted solution designed to address these concerns. This claims model aims to slow down premium increases and ensure the long-term sustainability of voluntary health insurance.
For more information, click here to read the full Legal Update.
Disclaimer
Rajah & Tann Asia is a network of member firms with local legal practices in Cambodia, Indonesia, Lao PDR, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam. Our Asian network also includes our regional office in China as well as regional desks focused on Brunei, Japan and South Asia. Member firms are independently constituted and regulated in accordance with relevant local requirements.
The contents of this publication are owned by Rajah & Tann Asia together with each of its member firms and are subject to all relevant protection (including but not limited to copyright protection) under the laws of each of the countries where the member firm operates and, through international treaties, other countries. No part of this publication may be reproduced, licensed, sold, published, transmitted, modified, adapted, publicly displayed, broadcast (including storage in any medium by electronic means whether or not transiently for any purpose save as permitted herein) without the prior written permission of Rajah & Tann Asia or its respective member firms.
Please note also that whilst the information in this publication is correct to the best of our knowledge and belief at the time of writing, it is only intended to provide a general guide to the subject matter and should not be treated as legal advice or a substitute for specific professional advice for any particular course of action as such information may not suit your specific business and operational requirements. You should seek legal advice for your specific situation. In addition, the information in this publication does not create any relationship, whether legally binding or otherwise. Rajah & Tann Asia and its member firms do not accept, and fully disclaim, responsibility for any loss or damage which may result from accessing or relying on the information in this publication.
