If your car is stolen while on hire purchase you can stop paying installments, says Thai lawyer

 

Picture: Daily News

 

BANGKOK: -- A leading lawyer has said that most Thais believe that if a car is being bought on hire purchase the buyer has to continue paying for it by keeping up the installments.

 

Wirat Wangpitiphanit told Daily News Online that this is not the case, reports Daily News.

 

If a vehicle is stolen the purchaser should get a police report and give it to the finance company. Insurance - which is compulsory in HP agreements - will cover it.

 

The buy does not need to pay any more installments. If the vehicle is found the installments then must continue.

 

Lawyer Wirat said on his page @tanaiwirat.com that this is one of the common misconceptions that Thais have about the law.

 

Source: Daily News

 

-- © Copyright Thai Visa News 2016-11-16

It is this misconception that causes Thais to believe insurance has little value...

If this is true, you can see some   people who are struggling to pay

 installments,their cars will get stolen and maybe broken up for parts,

it would be a better alternative to having the car repossessed,sold 

and they would still be liable to pay the difference.

regards worgeordie

I foresee a sharp rise in the number of cars on finance being "stolen" and never recovered, and their owners suddenly exchanging their finance debt for the value of the car as parts.

 

Worgeordie I see you had the same thought as me at the same time!

Edited November 16, 20169 yr by Classic Ray
Similar comment

Is that not normal that a car purchased in installments should be ensured against theft etc. ?

What if the insurance premium was not paid?

Sister-in-law (nurse) had her car stolen.  She paid the bank each month for a car she did not have for four years.  The thief was caught but Pattaya police refused to act unless she stumped up 10K.  The thief stole two other cars.  Justice Thai style eh?

1 hour ago, worgeordie said:

If this is true, you can see some   people who are struggling to pay

 installments,their cars will get stolen and maybe broken up for parts,

it would be a better alternative to having the car repossessed,sold 

and they would still be liable to pay the difference.

regards worgeordie

beat me to it

 

The headline is a little misleading and so is the lawyer - the person that took out the HP on the car is always responsible for the loan........................................but

If they have insurance then the insurance company will cover the loss 

6 minutes ago, smedly said:

beat me to it

 

The headline is a little misleading and so is the lawyer - the person that took out the HP on the car is always responsible for the loan........................................but

If they have insurance then the insurance company will cover the loss 

The insurance company will cover the loss after they are satisfied it is not a case of fraud.

 

I wonder how many stolen cars there are where the owners are not able to hand over both sets of keys to the insurance company ?

 

And this is why insurance is so important. Insurance companies are not allowed to work in the same way as they do in the west. I honestly don't know why foreign insurance companies set up here. I guess they must be making money.

 

When you buy a car, it's 'your' responsibility to pay the money back for that car. If that car is stolen, it's still on you to pay the money back. It's not the car dealer's fault your car was stolen. This is why insurance is so important. You have coverage for theft. Someone steals your car and you get your money back, etc. 

 

The police need to crack down hard on people without insurance. My missus' car was hit in a fender bender. The insurance guy came out but the other driver said they'd rather just pay cash. Okay. Insurance guy came out and said there was 13k's worth of damage. The lady who hit us was shocked. "That's too much" she said. "Okay", we said "use your insurance". "But I don't have insurance' she said.

 

People need to be forced into acting responsibly. The lady who hit us thought it was her god given right not to have insurance and drive around like a dumb-dumb. She thought it was her god given right to only pay a little because that was convenient for her.

 

57 minutes ago, mikebell said:

Sister-in-law (nurse) had her car stolen.  She paid the bank each month for a car she did not have for four years.  The thief was caught but Pattaya police refused to act unless she stumped up 10K.  The thief stole two other cars.  Justice Thai style eh?

 

 

I'm sure she would've had insurance as part of the HP agreement, consequently she can sue for those payments, plus fraud, plus emotional stress

12 minutes ago, rkidlad said:

 

The police need to crack down hard on people without insurance.

 

 

Why should they crack down on  insurance that is not compulsory ?

11 minutes ago, rkidlad said:

And this is why insurance is so important. Insurance companies are not allowed to work in the same way as they do in the west. I honestly don't know why foreign insurance companies set up here. I guess they must be making money.

 

When you buy a car, it's 'your' responsibility to pay the money back for that car. If that car is stolen, it's still on you to pay the money back. It's not the car dealer's fault your car was stolen. This is why insurance is so important. You have coverage for theft. Someone steals your car and you get your money back, etc. 

 

The police need to crack down hard on people without insurance. My missus' car was hit in a fender bender. The insurance guy came out but the other driver said they'd rather just pay cash. Okay. Insurance guy came out and said there was 13k's worth of damage. The lady who hit us was shocked. "That's too much" she said. "Okay", we said "use your insurance". "But I don't have insurance' she said.

 

People need to be forced into acting responsibly. The lady who hit us thought it was her god given right not to have insurance and drive around like a dumb-dumb. She thought it was her god given right to only pay a little because that was convenient for her.

 

 

According to the lawyer the finance company, not the dealer, is responsible for for the insurance. At least that's how I read it.

 

Is it compulsory to carry third party insurance in Thailand?

 

There is the 3rd party insurance required when paying the annual road tax, but I believe this only covers injury and not mechanical damage?

1 minute ago, 12DrinkMore said:

 

According to the lawyer the finance company, not the dealer, is responsible for for the insurance. At least that's how I read it.

 

Is it compulsory to carry third party insurance in Thailand?

 

There is the 3rd party insurance required when paying the annual road tax, but I believe this only covers injury and not mechanical damage?

I'm not sure. For me, insurance on theft should be down to the driver. Insurance for accidents should be compulsory and checked by whomever has to check that kinda stuff. 

6 minutes ago, Don Mega said:

 

Why should they crack down on  insurance that is not compulsory ?

 

My point was referring to crack down on people without insurance for accidents.

 

As for people who don't have insurance for theft, that's on them. 

 

I think the "leading" lawyer is saying, the HP companies insure the vehicle against theft, but the buyers are not aware of this. It makes sense as many Thais dont take out insurance and the HP company would want to cover the loss.

 

A really irresponsible thread, with little information , that people may act upon. I dont need insurance ThaiVisa told me.

 

28 minutes ago, Thrilla said:

... consequently she can sue for those payments, plus fraud, plus emotional stress

 

I'm not entirely sure you know what you are talking about.

1 hour ago, StefanBBK said:

Is that not normal that a car purchased in installments should be ensured against theft etc. ?

What if the insurance premium was not paid?

 

 

If you don't pay the premiums, you don't have insurance...duh!

 

7 minutes ago, blackcab said:

 

I'm not entirely sure you know what you are talking about.

 

 

Then why bother posting

The PERSON buying the car has the responsibility

to maintain theft insurance on the car while it is being 

financed...usually included in the monthly payments...

 

i would ask ask for another legal opinion!!!

7 minutes ago, little mary sunshine said:

The PERSON buying the car has the responsibility

to maintain theft insurance on the car while it is being 

financed...usually included in the monthly payments...

 

i would ask ask for another legal opinion!!!

 

What you are saying makes sense, there is in fact a level of insurance, included in the monthly payments. The lawyer is saying most people are unaware of this.

2 hours ago, StefanBBK said:

Is that not normal that a car purchased in installments should be ensured against theft etc. ?

What if the insurance premium was not paid?

Then the idiot who bought the car can keep making payments for a car he doesn't have  

1 hour ago, Thrilla said:

 

 

I'm sure she would've had insurance as part of the HP agreement, consequently she can sue for those payments, plus fraud, plus emotional stress

Sue an insurance company for emotional stress     

Good luck with that plan

In the west you would be fighting a loosing battle

In Thailand, just slam your head into a wall, it would be a better result 

2 hours ago, mikebell said:

Sister-in-law (nurse) had her car stolen.  She paid the bank each month for a car she did not have for four years.  The thief was caught but Pattaya police refused to act unless she stumped up 10K.  The thief stole two other cars.  Justice Thai style eh?

Pattaya police refused to act unless she stumped up 10K. 

Standard procedure 

20 minutes ago, Peterw42 said:

 

What you are saying makes sense, there is in fact a level of insurance, included in the monthly payments. The lawyer is saying most people are unaware of this.

 

 

People need to to read their policy and know what they are paying for.

I would get a second legal opinion if I had theft insurance and the bank,

fimance co. Told me I had to continue to make monthly pmts after the

car was stolen.

1 hour ago, rkidlad said:

 

My point was referring to crack down on people without insurance for accidents.

 

As for people who don't have insurance for theft, that's on them. 

 

Are you talking about the compulsory government insurance ?

Who would you believe/ trust ? a lawyer, a policeman, a insurance salesman, or the adjuster for your insurance if you were involved in a situation as described?

3 hours ago, StefanBBK said:

Is that not normal that a car purchased in installments should be ensured against theft etc. ?

What if the insurance premium was not paid?

pretty sure the finance company builds that into the price of the repayments. can see may of ying lucks subsidized cars being 'stolen' when the owners can no longer afford the repayments.

27 minutes ago, slapout said:

Who would you believe/ trust ? a lawyer, a policeman, a insurance salesman, or the adjuster for your insurance if you were involved in a situation as described?

 

Is that a trick question, or is "none of the above" an option?

5 hours ago, worgeordie said:

If this is true, you can see some   people who are struggling to pay

 installments,their cars will get stolen and maybe broken up for parts,

it would be a better alternative to having the car repossessed,sold 

and they would still be liable to pay the difference.

regards worgeordie

 

 

This has been happening in the western world for decades. After leaving the Police force I became a private investigator, specialising in motor vehicle insurance frauds for some 22 years.  You wouldn't believe some of the stories told.  Many of them related to people not being able to meet their commitments.  Some got caught, some didn't, the ones who did were only the tip of the iceberg.    

8 hours ago, webfact said:

'If a vehicle is stolen ... Insurance - which is compulsory in HP agreements - will cover it ... If the vehicle is found the installments then must continue.' If that is the case, it would benefit the HP company to have a car stolen, then recovered. Unless they then need to repay the insurance company.