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 third-party 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.
Source: The Myanmar Times
