Comprehensive Motor Insurance in Myanmar
Motor insurance in Myanmar is relatively straight forward. Insurance covers the vehicle rather than the driver, so there isn't a need to extensively access the profile of driver.
The insurance premium is based on the value of the car, in other words Sum Insured, which is the market value of the car. The higher the value, the higher the premium which is usually 2% of sum insured (2% x value of the car) annually. If you have car that has a market value of US$10,000 (c. 120 lakhs Kyats), the premium payable including taxes is US$200 (240,000 Kyats) for a year. This is very cheap.
In the UK, I pay yearly premium of 600 GBP for the car that worth 5,000 GBP, and I am an experienced driver with years of no claim bonuses (NCB).
Because this is a comprehensive insurance, this covers thrid party liabilities, should the insured was at fault. For US$200 (240,000 Kyats), the risk you mitigate is enormous.
For the time being, due to young market where car owners and drivers perceives motor insurance as nothing but extra cost, the regulator, Myanma Insurance (MI), and insurance companies are encouraging the market by lowering the premium. So far the insurance companies can afford to do so, providing their massive reserves. When claims happen, insurers are willing to pay out swiftly, to build up confidence in the market. Insurance related facebook pages are filled with how much of claims have been processed.
I am sure this will change in the future. Motor insurance will be more expensive as the market mature. It is now the best time to get your risks covered at unbelievably low cost.
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