Third-Party Liability Insurance: Myanma Insurance tripled the compensation amounts

Starting from April 1st this year, Myanma Insurance had tripled the compensation amount than that of the previous amount.

The Third-Party Liability Insurance Rules had been enacted in Myanmar since 1976, and Myanma Insurance has been paying compensation to the injured victims caused by the accidents by the use of vehicles since then.

General Manager, General Insurance Services, Myanma Insurance, Lwin Oo said "We are the first country to do that among the ASEAN countries. At that time, Myanma Insurance would give 10,000 kyats as compensation if a person dies. There are 73 types of injury we cover, and we will pay them accordingly. Later, when the value of money depreciated because of inflation, 10,000 kyats is no longer enough for a victim. Therefore, we have gradually increased the compensation amount from 10,000 to 50,000, then to 100,000, and then from 100,000 to 500,000, and from 500,000 to 1,000,000."

Myanmar Insurance is also signing the Framework Agreement with ASEAN for the Cross Border Motor Insurance service.

According to ASEAN Framework Agreement on the Facilitation of Goods in Transit and GMS Cross-Border Transport Agreement, Compulsory Third-Party Liability Motor Insurance is providing for the cross-border goods-carrying vehicles, which are entering not only into ASEAN countries but also into China and India.

General Manager, General Insurance Services, Myanma Insurance, Lwin Oo said "There is an agreement within ASEAN that there will be motor vehicles passing over from one country to another. If people get injured (or) lost something by motor vehicles within Myanmar, we will compensate them according to the Myanmar’s law and rates. As soon as they get into Myanmar, we will give them ‘Blue Card’ at the Border Gate, and we will collect Premium fees. If an accident occurs within Myanmar, we will compensate them according to the Myanmar’s law."

It is learnt that suggestions has been made to the concerned officials to increase the compensation amount like other ASEAN member countries.

At present, the compensation amount is up to 3 million kyats for a person’s death, and up to 2.4 million kyats for an injury. Despite the increase in compensation amounts, the premium rate will remain the same.