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In Thailand, including the province of Chiang Mai, bad faith insurance refers to unfair practices by insurance providers, such as refusing to pay a valid claim without reasonable grounds or deliberately delaying settlements. The law obliges insurance companies to deal with their policyholders in good faith, meaning with honesty, fairness, and reasonableness. Any violation of this trust is considered as 'bad faith.'
Dealing with insurance companies can become complex, especially if they unfairly deny or delay your claims without a valid reason. If you suspect your insurance provider is acting in bad faith, you need a lawyer to help you navigate through Thai insurance laws and fight for your rights. They can help you collect the evidence needed to prove bad faith, negotiate claims, understand the possible legal remedies, and litigate the case, if necessary.
The main law regulating insurance activities in Thailand, including Chiang Mai, is the Insurance Act B.E 2535 (A.D. 1992). This Act specifies that if an insurance company refuses to pay a claim without just cause, the policyholder is entitled to additional compensation beyond the original policy amount. The rights of the policyholder and the obligations of the insurance companies are safeguarded by this Act.
1. What qualifies as bad faith insurance practice? Bad faith practices could involve an unreasonable denial of a claim, delays in processing claims, failure to conduct a sufficient investigation, or not communicating with the policyholder.
2. Can I sue my insurance company for bad faith? Yes, under Thai law, policyholders have the right to sue their insurance company if they believe the company is acting in bad faith.
3. What kind of damages can I recover in a bad faith insurance claim? Damage recovery can vary, but it generally covers the amount initially claimed, legal costs, interest, and possibly moral damages for the undue trouble caused.
4. Is there a specific time limit to file a bad faith insurance claim? Yes, under the Thai Civil and Commercial Code, the prescription period for insurance claims is one year, except for life and personal accident insurance, which is 10 years.
5. Can I handle bad faith insurance claim by myself? While individual policyholders have the right to engage directly with the insurance company, an experienced lawyer familiar with Thai insurance law can provide significant benefits given the complexity of these cases.
The Office of Insurance Commission (OIC) is a significant resource in Thailand. It is responsible for regulating and supervising the insurance sector, including dealing with bad faith insurance.Various legal advice clinics and centers in Chiang Mai offer free or low-cost advice and may provide assistance in bad faith insurance cases.
If you believe you are a victim of bad faith insurance, start by documenting the insurer's actions, including denial letters, correspondences, and notes from phone calls. Detailed records can strengthen your case significantly.Contact a local lawyer experienced in insurance matters for advice. The lawyer can review your insurance policy and the insurer’s conduct, then inform you about the best strategy to take.
