The crash made headlines, prompting authorities to review cyclist-safety measures.
The victims were riding with friends in Chiang Mai province when a drunk university student ploughed her car into their group at 6am on May 3. The accident killed three cyclists and injured two others.
The driver was covered by mandatory and voluntary car-insurance policies from Mittare Insurance.
The firm has agreed to pay Bt200,000 from the mandatory policy and Bt1 million from the voluntary policy.
“We would like to express condolences to the families of the victims. We understand their losses are irreplaceable but we have done our best to compensate them fully,” the firm’s president Sukhathep Chansrichawla said yesterday.
He said drunk driving was one of the most common causes of car accidents.