3 Thais arrested over illegal car insurance, causing 30 million baht loss

Victims tricked with fake guarantees and staged advertisement

Central Investigation Bureau (CIB) officers arrested three suspects for illegally operating a car insurance company that caused damages exceeding 30 million baht.

The Office of Insurance Commission (OIC) received complaints from clients of two second-hand car dealerships in Bangkok’s Bang Khae district and in Nonthaburi province, after an insurance company refused to cover repair costs as promised.

According to the complainants, the company persuaded them to purchase packages called “Car Health Insurance” and “Used Car Quality Guarantee”, costing 28,000 baht each. The company claimed these packages would guarantee the quality of second-hand vehicles. If any mechanical problems arose, the insurance would cover the repair costs.

Several victims reported issues with engines, gear systems, and injection systems. They had their cars repaired at garages as stipulated, but the insurance company later refused to compensate them, contrary to the terms stated in the contracts.

The OIC handed the case to the CIB for further investigation. Police discovered the company was registered in 2022 and had three managing directors: a 36 year old man named Autsanai, a 26 year old man named Phatsapong, and a 42 year old woman named Natpaphat.

3 suspects arrested for scam car insurance
Photo via Facebook/ ตำรวจสอบสวนกลาง

The trio advertised their insurance packages through more than 20 second-hand car dealerships and claimed to have agreements with over 200 garages. Victims paid premiums ranging from 9,000 to 100,000 baht, with coverage supposedly extending up to 300,000 baht.

Although the company was formally registered, it never obtained the required licence to operate as an insurance provider. It also issued vehicle inspection certificates, which require OIC approval.

Investigators found the company promoting its services online, including a video featuring a man driving a BMW who assured viewers that the company had covered all repair costs for his car. Police later identified him as a delivery rider who did not own a BMW and admitted he was paid 500 baht to appear in the advertisement.

Car insurance scam costs 30 million baht damage
Photo via Facebook/ ตำรวจสอบสวนกลาง

Financial records showed the company handled more than 30 million baht in transactions. Evidence confirmed that premiums were collected from 259 victims and 52 dealerships. However, police suspected nearly 500 people fell victim to this scam company.

Funds were initially transferred to the company’s account before being funnelled into the personal accounts of the three suspects.

With this evidence, police arrested the suspects at offices in Bangkok and Samut Sakhon, seizing documents linked to the illegal operation.

All three denied the charges, admitting only that they had offered the packages. They claimed the schemes were not insurance but rather services to certify the quality of used car dealerships and provide maintenance and repair support for second-hand cars.

1 Thai woman and 2 men illegally operates car insurance company
Photo via Facebook/ ตำรวจสอบสวนกลาง

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Petch Petpailin

Petpailin, or Petch, is a Thai translator and writer for The Thaiger who focuses on translating breakingThai news stories into English. With a background in field journalism, Petch brings several years of experience to the English News desk at The Thaiger. Before joining The Thaiger, Petch worked as a content writer for several known blogging sites in Bangkok, including Happio and The Smart Local. Her articles have been syndicated by many big publishers in Thailand and internationally, including the Daily Mail, The Sun and the Bangkok Post. She is a news writer who stops reading news on the weekends to spend more time cafe hopping and petting dwarf shrimp! But during office hours, you can find Petch on LinkedIn and you can reach her by email at petch@thethaiger.com.