Thai law requires all motor vehicles to carry compulsory motor insurance, known as "Por Ror Bor.". The Motor Victims Protection Act (B.E. 1992) came into effect on 5 April 1993, by requiring cars and motorcycles registered with the Department of Land Transport, as well as cars powered by electric motors and other energy sources to provide insurance coverage for everyone affected by car accidents, regardless of whether they are drivers, passengers, or pedestrians. If a person's life, body part, or health is damaged due to an accident, the deceased's heirs will also be covered.

According to the Act, the amount of insurance coverage per person of compulsory insurance is limited, so car owners are advised to purchase voluntary car insurance for maximum protection.

Car owners, car hire buyers, and those who bring cars registered in foreign countries to use in Thailand are responsible for compulsory car insurance.
Every vehicle must have a compulsory insurance policy by law and the policy must be renewed every year before paying the annual car tax. A fine of not more than ฿10,000 will be imposed on anyone who violates the compulsory insurance (Act).

The accident victims will be covered right from the first accident whether the driver, passenger, or even pedestrians. In the event of injury or death resulting from a car accident, you will be compensated for actual damages in the amount of initial damages coverage per person in the amount of not more than 500,000 baht, which will be medical expenses according to the actual treatment, not exceeding 80,000 baht. Per person and in the event of death or disability and loss of organs, you will be covered in the amount of 500,000 baht as required by law, excluding other damages to property.

     For those who have compulsory car insurance, in the event of an accident caused by a car, you will be eligible for initial damage protection (pay immediately without waiting for proof of liability within 7 days) including medical expenses, damage to life, permanent disability or loss of organs in the amount of initial damage protection per person which is divided into medical expenses according to the actual treatment, not more than 30,000 baht. In case of organ loss or death, will receive compensation in the amount of 35,000 baht per person. In addition, if the victims are injured and die after receiving medical treatment, they will receive compensation of not more than 65,000 baht per person.

 

In order to pay the driver's medical expenses, it will be in accordance with the standard central medical expense rate. The driver who is at fault is defined by the law to receive only preliminary damages because this law primarily provides protection to third parties.
 
The objectives of the law that requires all vehicles to have a compulsory insurance policy are as follows:

1. To protect and help people who have been injured or died because of a car accident, with timely medical attention in the event of injuries or death

2. As a guarantee to hospitals that they will receive payment of medical fees for the treatment of car accident victims

3. It is government assistance given to people who have suffered damage due to a car accident.

4. Promote and support insurance participation that provides relief of suffering for the victims and their families