Thailand allocates 50 million baht for foreign tourist insurance

The Thai Tourism and Sports Ministry has allocated a budget of 50 million baht (US$1.38) for the fiscal year of 2024 to financially aid foreign tourists in the event of accidents or death. The ministry stated that this amount is likely to cover its expected influx of 35 million foreign visitors this year, in accordance with the average annual claims made over the past five years.

Tourism and Sports Minister Sudawan Wangsuphakijkosol emphasised the government’s regard for the tourism industry as a key source of revenue. The ministry aims to ensure the safety of foreign tourists. As of February 11, there have been 4.3 million foreign arrivals, putting the country on track to meet its target of 35 million by year-end, said Sudawan.

The allocated 50 million baht budget, received from a central fund, is earmarked to compensate foreign tourists for any mishaps that may occur during their travels in Thailand between January 1 and August 31 this year. The coverage includes up to 1 million baht per person in case of death, and 300,000 baht (US$8,296) per person for permanent organ loss, loss of sight, or a permanent disability. Furthermore, a maximum of 500,000 baht (US$13,825) is set aside for medical expenses, reported Bangkok Post.

Tourists qualify for coverage if the incidents are not due to their negligence, intention for illegal activity, or risky behaviour. They must be visiting Thailand with a tourist visa or for tourism purposes. The insurance programme fills in the gap left by the expiration of the Foreign Tourists Assistance Fund.

The fund, which was dissolved two years ago, is expected to be replaced by a new tourist fee to be used for tourism insurance and the development of tourist attractions. The new fee scheme had initially planned to charge 300 baht for air arrivals and 150 baht for sea and land arrivals, but this has now been indefinitely postponed.

Despite the ministry’s plans not to cancel the proposed 300-baht tourism levy, it will not be implemented in the next five-six months. The ministry is looking to increase the number of arrivals and tourism spending during this period.

Boost tourism

Mongkon Wimonrat, the ministry’s deputy permanent secretary, stated that the allocated budget is adequate, given that the annual average compensation is not likely to exceed this amount. The highest number of claims was in 2018 with 103 cases worth 52 million baht, primarily due to the boat capsize off Phuket.

In 2019, a record year for tourist arrivals, the number of claims was significantly lower, with 24 cases worth 6 million baht (US$165,883). Mongkon added that most foreign tourists purchase their travel insurance before visiting Thailand. Group tourists are required by the Tourism Business and Guide Act of 2008 to buy travel insurance. Only a small number of independent tourists do not purchase travel insurance.

The scheme requires tourists to initially cover their medical expenses, after which they can claim reimbursement. The Tourist Assistance Center, operated by the Provincial Office of Tourism and Sports, assists tourists with their claims within 15 days, with compensation expected within an additional 15 days.