Automobile Service Centre Hopes to Revitalise Insurance Sector

The Tokyo Auto Service Japan Co Ltd, an automobile service centre that will not only repair damaged vehicles but also provide automobile insurance services, opened its doors in Yangon.

The company said it noticed that car owners from Myanmar are not interested in buying insurance for their cars. Therefore, the company wants to try to spark interest among Myanmar drivers to purchase insurance.

The Tokyo Auto Service centre has linked with insurance companies to help support their advertising efforts.

“In order to raise the interest of the people in automobile insurance, we will offer this service when they come in for repairs at our centre. The insurance businesses have been operating in Myanmar for a long time but few people are interested in it,” U Htin Lin, managing director of Tokyo Auto Service Japan Co Ltd, said.

Premium fee for insurance of the whole car cost 1.2 percent of the value of the car. However, only 20 percent of the car owners have insurances. With insurance, the insurance holder will get compensation for the damages of the car accident which were not only done by them but also by others, according to Myanmar Insurance Enterprise.

Basic insurance for a vehicle covers basic accidents. Motorists can buy extra insurance to cover damages caused by events such as natural disasters and war for an additional .05 percent premium. Theft insurance can be purchased at 15 percent.

The insurance companies coordinate with dealerships to determine the price of vehicles. They also reference automobile magazines and publications to determine the price of vehicles, according an official from IKBZ Insurance Company.

“A car service centre that links with insurance providers is good. The practice of buying car insurances is still not common in Myanmar, however, this kind of centre will help promote automobile insurance,” U Aye Min Thein, director of Myanmar Insurance Enterprise, told Myanmar Business Today.

“People should have car insurance because an accident can happen at any time. The numbers of cars continue to rise in Myanmar so there will be a higher chance for accidents to happen in the future.”

Another hurdle to Myanmar motorists is providing a quality of auto repair work that is scarcely found in-country. With a small number of knowledgeable Myanmar mechanics and fewer places to learn the trade, knowledge is often handed down in an apprenticeship manner.

“There are very few skilful machinists in automobile servicing sector in Myanmar and also motor vehicle machinists need to get international recognised certificates,” Dr Soe Tun, chairman of Myanmar Automobiles Manufacturers and Distributors Association, suggested.

Because of a lack of educated Myanmar mechanics, Tokyo Auto Service boasts their Japanese-trained mechanics’ skills, however, their mechanics do not have international certification.

Tokyo Auto Service Japan Co Ltd said it will open an automobile centre in Mandalay this year and will also open more centres in Yangon in the near future.

 

Tags: Insurance, Automobile, Workshop, Car, Yangon, Myanmar, The Tokyo Auto Service Japan Co Ltd, U Htin Lin, Myanmar Insurance Enterprise, U Aye Min Thein, director of Myanmar Insurance Enterprise, U Aye Min Thein, Myanmar Insurance Enterprise, Myanmar Business Today, Myanmar Automobiles Manufacturers and Distributors Association

 

Source: Myanmar Business Today

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