Section Code: 0861 - 0868

Thai Civil and Commercial Code


Chapter 1: General Provisions

Section 861. Insurance Contract

A contract of insurance is one in which a person agrees to make compensation or to pay a sum of money in case of contingent loss or any other future event specified in the contract, and another person agrees to pay therefor a sum of money, called premium.

Section 862. Definitions

In the present Title:

"Insurer" means the party who agrees to make compensation or to pay a sum of money. "Assured" means the party who agrees to pay the premium money.

"Beneficiary" means the person who is to receive compensation or to be paid a sum of.

The assured and the beneficiary may be one and the same person.

Section 863.

A contract of insurance is not binding on the parties unless the assured has an interest in the event insured against.

Section 864.

When the parties to a contract of insurance, in fixing the amount of the premium, took into consideration a particular risk, and such risk ceases to exist, the assured is entitled to have the premium reduced proportionately for the future.

Section 865.

If at the time of making the contract, the assured, or, in case of insurance on life, the person upon whose life or death the payment of the sum payable depends, knowingly omits to disclose facts which would have induced the insurer to raise the premium or to ref use to enter into the contract, or knowingly makes false statements in regard to such facts, the contract is voidable.

If such right of avoidance 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, such right is extinguished.

Section 866.

If the insurer knew of the facts mentioned in Section 865, or knew the statements to be false, or would have known of them - or of their falsity if he had exercised such care as may be expected from a person of ordinary prudence, the contract shall be valid.

Section 867. A contract of insurance is not enforceable by action unless there be some written evidence signed by the party liable or his agent.

A policy of insurance conforming to the contract shall be delivered to the assured.

The policy must be signed by the insurer and contain:

  1. The subject of the insurance.
  2. The risk taken by the insurer.
  3. The value of the insurable interest, if that has been fixed.
  4. The sum insured.
  5. The amount of the premium and manner of its payment.
  6. If the duration of the insurance has been fixed, its commencement and ending.
  7. The name or trade name of the insurer.
  8. The name or trade name of the assured.
  9. The name of the beneficiary, if any.
  10. The date of the contract of insurance.
  11. The place where, and the date when, the policy was made.

Section 868.

Contracts of Maritime insurance shall be governed by the provisions of the Maritime Law.