Most people know only two things about their own insurance: when the premium is due and how to claim. In fact a policyholder has many rights conferred by law and by the policy. This article collects the important ones, so you can get full value from what you already have.
Group 1: rights at the start of the contract
- The free look right — cancel the contract within the specified period after receiving the policy and receive the premium back under the applicable rules. It is the safety net for your decision, which we have written about in detail.
- The right to full information before buying — the seller has a duty under professional ethics to explain the cover, the exclusions and the conditions. You can always ask for the full documents.
Group 2: rights while holding the policy
- The grace period — around 30 days after the due date, with cover fully in force.
- The right to change information — your address, the payment frequency, and most importantly the beneficiary, which can be changed through the proper process at no cost. Review it whenever life changes.
- The right to a policy loan — for policies with a cash value, within the specified limit and at the specified interest rate [check the conditions in the policy].
- The right to use the policy value — when you no longer wish to pay premiums, you may choose surrender, paid-up value or extended term: three routes with very different results, compared in our series on managing a policy.
- The right to cancel riders — reduce only the parts you do not want while keeping the main contract.
- The right to request documents — both the premium payment certificate for tax deduction purposes and a copy of the policy if the original is lost.
Group 3: rights when something happens and at claim time
- The right to have the claim assessed within a time frame — the law sets a period for paying a claim once the documents are complete [check the latest information].
- The right to know the reason for a refusal — you may always ask for a written explanation of which condition the refusal rests on.
- The right to appeal and submit further documents — a first refusal is not always the final answer.
Group 4: the right to complain to the regulator
If negotiation with the company does not produce a fair resolution, a policyholder may complain to the OIC, through the hotline on 1186 or online, at no cost, and there is a dispute mediation process available. This right is the important support that means an individual consumer does not have to fight alone.
Making your rights work in practice
Every right works better with evidence. Keep every document, record every contact (the date, who you spoke to, about what), and communicate in writing on important matters. A well-organised policyholder is one who always negotiates with weight behind them.
In short
A policy is not a one-way contract where you simply pay and wait. Policyholders have rights at the start, while holding, at claim time, and when a complaint is needed. Know them and use them all, and every baht of premium carries its full value. If you are unsure which right applies in your case, message us on LINE any time.
This article was inspired by material from the Thai Financial Planners Association (TFPA) and has been entirely rewritten.