26 Jul 2019
The government announced yesterday that it will make vehicle third-party liability coverage compulsory soon.
Speaking during ‘Insurance Day’, an event held on Thursday in Phnom Penh to promote the industry, Finance Minister Aun Pornmoniroth said the government is planning to issue a law that will make vehicle insurance mandatory for every vehicle owner, which, he added, is in line with the existing Insurance Law.
He said the law will aim to provide financial protection against physical damage resulting from traffic collisions as well as protect the insured against any liability arising from such incidents.
“Victims will be appropriately compensated for their injuries,” he said, adding that the regulation will contribute to the development of the industry.
The minister did not reveal a timeframe for the launch of the law.
Nget Bunthoeurn, deputy CEO of Ly Hour Insurance, said less than five percent of vehicles on Cambodian roads are insured. When the upcoming law comes into effect, the sector will grow rapidly, he predicted.
“Property and vehicle insurance will experience strong growth in the years to come.”
Allen Thai, CEO of Dai-ichi Life Insurance, told Khmer Times at the event that the industry, particularly the life insurance segment, has experienced robust growth in the last few years.
“The market still has plenty of room to grow, that is why we decided to expand our business in the country,” he said.
There are 13 general insurance companies, 11 life insurance companies and 7 micro-insurance firms operating in the country, according to a report from the ministry. Total gross premium in the insurance industry has increased on average 35 percent a year for the last five years.
The total gross premium reached $196.4 million last year. It is expected to reach $260 million in 2019.