Myanma Insurance (MI) issued compensation of over Ks1.4 billion to fire insurance and natural disaster insurance policyholders over the first seven months of this fiscal year, said U Aye Min Thein, managing director of MI.
He clarified the advantages of insurance to protect policyholders financially from loss of possessions, home and business by fire and natural disasters.
Between April and October, MI paid Ks88.3 million for loss of property damaged by fire, over Ks25 million for damage of 33 billboards and three structures by powerful wind, over Ks495 million for damage caused by flooding and over Ks2 million for damage by earthquake.
Non-life insurance policy is in higher demand in the local industry than that of life insurance, which is more popular in other countries, U Aye Min Thein said.
In 2013, the state-owned MI invited the private sector to operate insurance businesses under its rules. Only 19 out of 217 applicants submitted proper proposals to MI, which allowed some of them to open.
U Than Zaw from KBZ Insurance (Mandalay) said there are many legal frameworks relating to the insurance service business. Generally, policy buyers have to pay premium fees once a year.
The compensation is paid depending on the amount of the losses in each case. The compensation value for Comprehensive Motor Insurance has doubled as of August.
Aung Thant Khaing