FAQs: Transportation
Insurance
Q.
Does Thailand have specific laws on marine insurance?
A. No.
Although the Civil and Commerce Code provides that contracts of
marine insurance shall be governed by the provisions of the maritime
law, there is currently no maritime law that deals with marine
insurance. However, the Thai court is prepared to adopt the principles
of English marine insurance law, provided that it is established
that such principles are the general rules of law.
Q.
Under what conditions may the insurer subrogate the rights of
the assured?
A. If
the loss is caused by an act of a third party, the insurer who
paid compensation is subrogated (up to the amount paid by him)
to the rights of the assured and of the beneficiary against such
third party. If the insurer has paid only part of the compensation,
he cannot exercise his right to the prejudice of the right of
the assured or of the beneficiary to claim the remainder of the
loss from the third party.
Q.
Who is responsible for the expenses for valuation of loss?
A. The
insurer. The actual amount of the loss shall be valued at the
place where, and at the time when, the loss occurred.
Q.
What is the effect of insurance where the subject matter insured
is assigned to a third party?
A. If
the subject matter passes from the assured by will or operation
of law, the rights under the contract of insurance will be transferred
with it. For other cases, unless otherwise provided by the contract,
if the assured transfers the subject matter, he needs to notify
the insurance company of the transfer, otherwise the rights under
the insurance contract will not be transferred with it. However,
if by such transfer the risk is substantially altered or increased,
the contract of insurance will become void.
(October 11, 2007)
The above is intended to
provide general information only. The contents do not constitute
legal advice and should not be relied upon as such. If legal advice
or other expert assistance is required, the services of competent
professionals should be sought.
For
further information, please contact Ms.
Pimvimol (June) Vipamaneerut, Partner & Head of Transportation
& Insurance Group
(june.v@tillekeandgibbins.com).
