According to local insurance industry representatives, there has been an increase in sales of comprehensive personal auto insurance over the past year.
Myanma Insurance state-owned company chief executive U Aye Min Thein said Myanmar weather that the number of comprehensive auto insurance customers has grown from 27,000 to 60,000 in the past 12 months.
“Corn [this] is still [small] compared to the number of cars, ”said U Aye Min Thein – citing some 600,000 cars on the roads across the country.
AYA Myanmar Insurance also reported a significant increase during this period.
“Comprehensive insurance for vehicles has increased by around 60%,” said AYA Myanmar Insurance Managing Director Ko Soe Hein.
Ko Soe Hein attributed this to a better understanding of the insurance industry by the general public: “The owners [previously] thought that insurance companies are unwilling to compensate in full.
He said owners typically pay K 100,000 to insurance companies for a car worth K 10 million. Every vehicle registered in Myanmar is covered by liability insurance, as required by the Department of road transport administration (RTAD).
But Myanmar law does not require comprehensive car insurance, which means many do not go beyond basic insurance.