Tuesday, August 1, 2017

Myanma Insurance, private companies allowed to sell four new policies

July 31, 2017
THE Insurance Business Regulatory Board (IBRB) has granted permission to the state-run Myanma Insurance (MI) as well as private companies for four new types of insurance, said U Khin Maung Win, General Manager of the MI.

According to the announcement issued on 10 July, the new types of insurance include personal accident insurance, marine hull insurance, travel insurance and farmer’s life insurance.

U Khin Maung Win said that the personal accident insurance is a new version of health insurance. This new type of insurance will provide financial supports to policyholders for accidental death, disability and injuries. Every healthy person between the age of 16 and 65 are eligible for this kind of insurance policy for three, six and 12-month term. The insurance benefits will normally go to the policyholder. However, the beneficiary files a claim with the insurance companies when the insured has died in accident. The price for the policy ranges between Ks500,000 and Ks20 million.

U Khin Maung Win also said that persons between the ages of 16 and 60 are eligible for farmer’s life insurance. Farmers and their families, relatives and business partners may apply for the new insurance for a 12-month term with prices ranging from Ks100,000 to Ks5 million plus a one per cent premium. The insurance company will pay the full amount of insurance benefits for death and disability. Based on the level of injury, compensation will be paid for those who sustained injuries in the case of accident. U Khin Maung Win added that travel insurance system covers inbound and outbound travels as well as passenger transportation. The term of travel insurance is between one day and three months at the most, with the price ranging from Ks500,000 and Ks10 million. For outbound travel insurance, a person has to pay Ks200 fees for a one-week term and Ks500 for a three-month term.

Including the four new types of insurance, Myanma Insurance currently provides 31 types of insurance to the public, while private insurance companies offer 12 kinds of insurance.

“The MI always collaborates with private companies to develop the country’s insurance market. There is no discrimination, with the MI planning to grant all types of insurance to the private sector in the future through a stage-by-stage approach. For the time being, the MI does not allow private companies to offer some forms of insurance with higher compensation rates,” said U Khin Maung Win.He continued to say that the MI operates like a private company, offering compensations to policyholders as quickly as possible. The quick responses have been given by respective departments to survey the cases, getting necessary documents from relevant organisations.

Of all the types of insurance, fire insurance is the best seller, representing 40 per cent of total earnings, followed by comprehensive motor insurance, marine insurance and life insurance, said U Khin Maung Win.

The Myanma Insurance company independently operates like private companies under the supervision of the Insurance Business Regulatory Board.
May Thet Hnin
Ref; The Global New Light of Myanmar

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