Tokio Marine updates electric vehicle insurance policy in Thailand

Photo courtesy of KhaoSod

Tokio Marine Insurance (Thailand) Public Company Limited recently announced changes in its electric vehicle (EV) insurance policy, which came into effect yesterday, July 1. The news sparked significant discussion among EV users.

Tokio Marine Insurance clarified that it would continue to provide insurance for EVs. The company explained its decision to revise the premium calculation method, influenced by the fluctuating market prices of new and used EVs, impacting the insurance value. These changes will take effect from tomorrow.

Current customers renewing their policies will continue to receive standard coverage, with premiums calculated based on their claim history. However, new customers or those transferring their policies will face temporary suspension of the existing fixed-rate premium. Instead, they can inquire about the premium rates from company representatives, who will assess the insurance value and offer rates on a case-by-case basis.

Customers participating in programmes with car manufacturers and dealers will still receive insurance coverage. Tokio Marine remains committed to its partnerships, ensuring all participants in these programmes are adequately covered. The company is also conducting further research to offer appropriate insurance premiums and values in the future. Tokio Marine expressed gratitude to all its supporters for their continued trust.

Earlier, the Thai General Insurance Association warned about a potential time bomb in the insurance industry due to the competitive pricing of EV insurance. The rapid depreciation of EV prices could affect the insurance value, with claim rates soaring to 90 to 100%, posing a risk of insurers not making any profit. Additionally, repair and spare parts costs for EVs are 50 to 60% higher than for combustion engine vehicles.

“We are grateful for the continued support from our customers and partners.”

The company is keen on addressing the challenges posed by the EV market to offer sustainable and beneficial insurance solutions for all stakeholders involved, reported KhaoSod.

Bangkok NewsEconomy NewsThailand News

Puntid Tantivangphaisal

Originally from Hong Kong, Puntid moved to Bangkok in 2020 to pursue further studies in translation. She holds a Bachelor's degree in Comparative Literature from the University of Hong Kong. Puntid spent 8 years living in Manchester, UK. Before joining The Thaiger, Puntid has been a freelance translator for 2 years. In her free time, she enjoys swimming and listening to music, as well as writing short fiction and poetry.

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