THAILAND: Travel insurance for tourists may become compulsory

Thai authorities are moving toward making travel insurance mandatory for all foreign visitors, as hospitals struggle with rising unpaid medical bills from tourists. It’s not law yet, but according to the Bangkok Post, the direction for travellers is clear, so Australians should take note.

Why Thailand is cracking down

The push is being driven by a growing financial burden on the public health system. Hospitals across Thailand are reportedly absorbing at least 100 million baht (AU$4.4 million) annually in unpaid bills from foreign patients, with tourist hotspots like Phuket and Chiang Mai hardest hit. In Phuket alone, one hospital says it writes off around 10 million baht each year treating uninsured visitors.

Much of this comes down to accidents, particularly involving tourists riding motorbikes for the first time. This often happens without proper licences or insurance, sometimes combined with alcohol use. Because emergency care can’t be refused, hospitals are left covering the costs when travellers can’t pay.

What the new rule could look like

While details are still being developed, the likely outcome is that travellers will need to show proof of medical or accident insurance before or upon entry to Thailand.

That requirement could be built into the visa process, checked at the airport before departure, or verified on arrival. It may also be linked to a previously proposed entry fee of around 300 baht (AU$13.20), although it’s unclear whether the two measures will be combined.

You should already have insurance

For most Australians, this won’t be a major cost, but it will remove the option of travelling uninsured.

A typical two-week travel insurance policy for Thailand can cost as little as AU$40–$50, while providing coverage in the millions for medical treatment. Despite that relatively low cost, many travellers still arrive without any cover.

That’s a foolish gamble, particularly in Thailand, where medical evacuation or private hospital care can quickly run into tens of thousands of dollars.

Part of a bigger global trend

As the world travels more, issues that were small, like health costs, have become big. With post-pandemic travel booming to all-time highs and most countries battling budget overspends, it is little wonder that tourists’ health costs have become a focus of interest.

Thailand wouldn’t be doing anything unusual here. To enter the Czech Republic recently, the guidelines said I had to have evidence of medical insurance. Also, a ticket out and the means to support myself while in the Czech Republic. That provision is not unusual; it’s already a condition of entry to Europe’s Schengen zone and countries like the UAE and Cuba.

2PAXfly Takeout

Travel insurance should be regarded as a basic thing that goes along with ‘ticket, passport, credit card‘ when you are doing your final check for travel.

Most of us with a reasonable credit card may have travel insurance associated with that card. You need to read the fine print on that coverage. I know that’s something we all love to do! Check that the policy provides the coverage you want. Others might be covered by union membership policies or their private health insurance. In all cases, you need to know the extent of that coverage and whether it covers you for what you need.

If you’re young, then you’ll probably take more risks than older folk. That means some will go head over heels and break something, so they need to be covered. At the other end of life, older people need health insurance because they likely have pre-existing conditions. They could worsen while travelling. Those in between should just have it, even if just to deal with lost luggage or cancelled ticket woes.

In fact, other than the marginal cost, there is very little downside to having good travel insurance. If you can’t decide whose policy is best for you, head over to a place like Choice Magazine. They provide comparisons, checklists, and recommended products. You may need to pay or subscribe to get the information, but it will be worth it.