Insurance: 10% discounts for NGV vehicles

Insurance extended to NGV conversion damage

POST REPORTERS

In an attempt to encourage car owners to shift to using natural gas for vehicles (NGV), 47 local insurance firms have agreed to offer 10% discounts on insurance premiums against vehicle damage caused by modifying to NGV.


According to Suchin Wanglee, president of the General Insurance Association (GIA), owners of cars that switch to NGV would be offered the special discount until June 30, 2009.


The discount would apply to all types of voluntary motor insurance on the condition that the owner proves that the car has been converted to use NGV.

According to Mr Suchin, the special insurance scheme would also extend coverage against damage to NGV equipment. Existing motor insurance excludes NGV equipment.


Installation expenses including equipment for vehicles modified for NGV average 50,000 to 60,000 baht.


Mr Suchin said that other benefits for the NGV insurance coverage scheme would remain the same.


Chantra Purnariksha, the secretary-general of the Office of the Insurance Commission (OIC), hailed the initiative, saying that more widespread use of NGV by local motorists would reduce oil expenses.


In a related development, Mr Suchin said the association yesterday agreed with the OIC's initiative to offer affordable fire insurance at only 600 baht a year. The policy would insure a residence for 150,000 to 600,000 baht based on type of house.


Anon Opaspimoltum, chairman of the property insurance sub-committee of the association, said the programme would cover losses incurred from fire, lightning, explosions of cooking gas, water damage, and plane and car crashes.


According to Mr Anon, the price offered under the scheme was cheap compared to existing products that generally cost about 2,000 to 3,000 baht for protection of 600,000 baht.


The association expects the project will appeal to about one million families and could generate premiums of about 600 million baht.


Mr Anon said the programme would be made available for one year.