First Loss Policy on Non-Life Insurance Contract: Comparative Study of New Zealand, Japan and Thailand

Abstract

Currently, the capacity of purchasing the full value insurance is low; therefore, the proportion of under-insurance products has been demanded and provided in the market. Moreover, the insured has the advantage upon the under-insurance policy and pays the lower cost of

Premium. However, in partial loss, the compensation will be deducted upon the components of the Average Clause once there is any alteration upon the formula. The actual value of the insured asset is the most problematic fact in accordance with other relevant issues. These factors have led a number of insufficient compensation claims in Thailand until now. The fact could be solved by the methodology that is concise to make the insured accurately understand and simply access to the protection which First Loss is the most suitable idea to be proposed in order to raise the sustainable awareness of sharing risks on insurance through the people.