Cabinet ministers yesterday accepted an exemption of up to 15,000 baht per year on health-insurance premiums tax-payers paid for their parents.

It also accepted a change in the tax law that would let off employers from tax charge for premiums on group insurance coverage for their workers.

The two changes would become effective in January 2007 and would relate for tax calculations starting next year.

The new policy aims to cheer more taxpayers to take out insurance cover for their families as dipping the financial burden for caring for the elderly.

Under the rule, taxpayers could claim up to 15,000 baht per year in insurance contributions as a tax inference for policies taken in the name of their own parents or in-laws.

Policies should be with an approved, registered insurer located in Thailand and the parent should also be aged 60 years or more and have income of less than 30,000 baht per year.

The corporate tax assumption would waive actual premium costs paid by companies on group health care insurance plans for policies taken out with limited insurance companies. Authorities hope that the new measure would cheer more companies to take out health-care insurance for their workers, thereby dipping costs for the health-care system.