The Office of Insurance Commission (OIC) targets 1.4 million micro-insurance policies to be issued to cover accidents during the Songkran holiday.
The scheme was initially launched last year for accident coverage during Songkran, a long holiday when road casualties and injuries tend to spike.
There were 3,724 accidents during Songkran in 2018, with 418 deaths and 3,897 injured. Motorcycles remained the mode of transport involved in the most accidents.
Last year's scheme cost 10 baht per person for a 30-day protection period, with compensation of 100,000 baht in case of death from an accident.
For this year, insurance premiums are offered at seven baht because of last year's few claimants and a low loss ratio.
The coverage period is 30 days and the purchasing period begins on April 14.
The OIC has partnered with consumer and retail companies to market the Songkran Took-Jai micro-insurance scheme.
"We target 1.4 million people becoming involved with this insurance scheme," said OIC secretary-general Suthiphon Thaveechaiyagarn.
Coverage conditions span three potential cases. A 100,000-baht compensation will be paid in the event of death, organ loss, loss of sight or permanent disability from accidents, as well as accidents that occur while driving or travelling on motorcycles.
Compensation of 50,000 baht will be paid in the event of death, organ loss, loss of sight or permanent disability from assault, as well as accidents that occur while driving or travelling on motorcycles.
Compensation of 5,000 baht for funeral expenses will be given in the event of death from an illness occurring within the first 15 days of the insurance policy becoming effective.
The micro-insurance policy will be available for those aged 20-70 at all branches of Government Savings Bank and on the e-commerce platform Shopee, while 1.4 million individuals who are customers of nine retail partners will receive the policy for free.
Anon Vangvasu, chairman of the Thai Insurance Business Council, said the key to success for micro-insurance is support from the regulator and the government to help find business partners with a wide-ranging customer base.
Business partnership enables wholesale customers to purchase a large amount of micro-insurance policies for their customers, Mr Anon said.
This process helps reduce operating costs, he said, and insurance companies can offer protection at a low price to penetrate the grassroots via the customer bases of partner companies.