HOUSE OF THE WEEK
Value for money in two-storey Thingangyun house
THIS fully furnished two-storey house in Thingangyun could be considered something of a bargain because it provides loads of space and plenty of features for a relatively low price of K200 million. more
Developers continue to shun insurance
May 24 - 30, 2010
PROPERTY developers are failing to buy fire and property insurance, the general manager of Myanma Insurance said last week.
The construction industry is unconvinced of the benefits of insurance, said Dr Maung Mg Thein.
“We’ve discussed the need for fire insurance several times with developers over the past six years, but there is no interest,” he said.
But in other sectors, the insurance of property against fire is the best-selling product among 50 kinds of insurance, he said. Property can also be insured against flooding, storms, earthquake damage and high winds.
“I have no idea why developers don’t see the benefits. Abroad, insuring the property is the first priority, even before the project starts,” said Dr Maung Mg Thein.
Developers cite different reasons for their lack of interest, including the fact that the insurance is provided by the government.
“Only the government offers insurance, there are no private insurance companies,” said U Ko Ko Lay, director of Three Friends Construction.
Insurance cannot be bought for dangerous buildings.
“We don’t stipulate an age at which a building becomes dangerous, but we will not insure any structure listed by the Yangon City Development Committee as dangerous,” he said.
“Sales of property insurance increased after Cyclone Nargis, especially in the business sector and factories,” said Dr Maung Mg Thein.
In the 2008-09 financial year, Myanma Insurance paid out about K5 billion in compensation to factories because of Cyclone Nargis, but the figure last year was just K1.5 billion.
