Thailand Law Library

by Thailand Lawyer

Chapter 2: Insurance Against Loss

A contract of insurance on carriage covers every loss which the goods carried may sustain from the time when they are received by the carrier until they are delivered to the consignee, and the amount of compensation is fixed according to the value which the goods carried would have had on arrival at the place of destination.

If the goods carried are insured in course of their transportation, the insurable interest of such goods includes their value at the place where and at the time when they have been received by the carrier, increased by the freight to the place of delivery to the consignee and other expenses connected with transportation.

Profits to be made at the time when the goods were to be delivered, are included in the insurable interest only if there is an express agreement to that effect.

Unless otherwise specified by the contract, a contract of insurance on carriage remains valid if, under the necessities of transportation, the carriage is interrupted for a time, or there are modifications in the route or manner of carriage.

The policy of insurance on carriage must contain in addition to the particulars specified in Section 867.

1. The specification of the route and manner of the carriage;
2. The name or trade name of the carrier;
3. The place where the goods are to be received and delivered;
4. The period fixed for the carriage, if any.

Guarantee insurance is a contract of insurance where the insurer agrees to make compensation, on behalf of the assured, for a loss caused to another person and for which the assured is responsible.

The injured person is entitled to receive the compensation actually due to him from the insurer directly, but such compensation cannot exceed the sum due by the insurer under the contract. In an action between the injured person and the insurer, the injured person shall summon the assured to appear in the action.

The insurer is not discharged from his liability to the injured person by delivering the compensation to the assured, unless he proves that the compensation has been paid by the assured to the injured person.

If the compensation paid by the insurer under judgment does not cover the whole amount of the loss, the assured remains liable for the difference unless the injured person has failed to summon the assured to appear in the action as provided by the foregoing section.