A total of 8,742 automobiles have been insured with the state-run Myanmar Insurance Enterprise (MIE) during the 2013-14 fiscal year, according to recently released data.
Although there are approximately 600,000 automobiles in Myanmar, only a meagre two percent of these vehicles are insured under comprehensive coverage, according to U Aye Min Thein, director general of MIE.
“There are only a few clients who have purchased comprehensive coverage. However, we have had more sales than private insurance companies.”
The combined number of vehicles insured under the comprehensive coverage of the six private insurance companies is 6,929, he added.
The insurer under the comprehensive insurance plan has a maximum indemnity of K50 million for vehicle damage and K10 million for the death of a person.
Auto insurance premium rates for privately owned vehicles are 0.8 percent for K80 million, while it’s 1.4 percent for cabs for a K10 million insurance plan.
Myanmar Insurance provides two types of auto insurance – comprehensive and liability coverage.
Source: Myanmar BUSINESS TODAY