Rise in car in­surance

The Myanmar Times - - Business - AYE NYEIN WIN ayenyein­win@mm­times.com

THERE has been a spike in sales of com­pre­hen­sive per­sonal car in­surance over the past year, ac­cord­ing to lo­cal in­surance in­dus­try rep­re­sen­ta­tives.

Man­ag­ing director of state-owned Myanma In­surance U Aye Min Thein told The Myan­mar Times that the num­ber of com­pre­hen­sive car in­surance cus­tomers had risen from 27,000 to 60,000 in the past 12 months.

“But [this] is still [small] com­pared with the num­ber of cars,” U Aye Min Thein said – cit­ing that there are some 600,000 cars on the road around the coun­try.

AYA Myan­mar In­surance also re­ported a sig­nif­i­cant in­crease over this time pe­riod.

“Com­pre­hen­sive in­surance for ve­hi­cles in­creased about 60 per­cent,” said gen­eral man­ager of AYA Myan­mar In­surance Ko Soe Hein.

Ko Soe Hein cred­ited this to an in­creased un­der­stand­ing of the in­surance in­dus­try by the gen­eral pub­lic: “Own­ers [pre­vi­ously] thought that the in­surance com­pa­nies are not will­ing to give full com­pen­sa­tion.”

He said that own­ers typ­i­cally pay K100,000 to in­surance com­pa­nies for a car worth K10 mil­lion. Ev­ery regis­tered ve­hi­cle in Myan­mar has third­party in­surance as the Road Trans­port Ad­min­is­tra­tion Depart­ment (RTAD) re­quires it.

But Myan­mar law does not re­quire com­pre­hen­sive car in­surance, mean­ing many do not look beyond ba­sic in­surance.

Photo: Staff

Traf­fic builds up on a Yan­gon road.

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