Previously you did not need a Thai health insurance when applying for a non immigrant O visa but it looks like that when I am applying for that visa on the Thai E-visa site. Is that correct?
Answer summary
The requirement for health insurance when applying for a Non-Immigrant O Visa appears to be changing. While some embassies and consulates require proof of minimal insurance for the validity period of the visa, individuals applying directly in Thailand may not need it. Basic travel insurance may suffice in certain cases.
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David ********
You don't need insurance if you apply for the non O if in Thailand. Get a tourist visa and then apply in Thailand.
It's a very common requirement at many embassies and consulates. They just want proof of minimal insurance for the 90 days the visa will be valid for. Most basic travel insurance policies are enough to satisfy this requirement.