MYANMA Insurance is close to settling a K62.2 million compensation claim for cargo on a ship that sank during a storm off Tanintharyi Division earlier this year, the state insurer’s general manager, Dr Mg Maung Thein, said last week.

The MV Aung Myint Thein, which was carrying mainly food products and cement on behalf of traders in Yangon, went down off Ye on July 1 during a voyage from the commercial capital to Dawei that began the previous day.

Dr Mg Maung Thein said Myanma Insurance usually pays cargo compensation claims within a week, if traders can submit the necessary documents.

“But because of the loss of some important documents it was taking longer than usual for Myanma Insurance to pay compensation for the cargo aboard the MV Aung Myint Thein,” he said.

Among the documents that the traders had needed to provide was a copy of the licence of the ship’s engineer, as the original was lost when the vessel sank, he said.

Dr Mg Maung Thein said the claim would be settled soon as Myanma Insurance had received the necessary approval from the Department of Marine Administration.

The traders had paid a premium of about K560,000, or about 0.9 percent of the value of the cargo, he said.

Dr Mg Maung Thein said Myanma Insurance would only pay cargo compensation claims if a ship’s licence was valid when an accident occurred and if the vessel was not overloaded.The owners of cargo were also required to lodge claims as soon as possible after an accident.

“Losses due to bad weather last year resulted in more traders taking out insurance cover this year,” Dr Mg Maung Thein said.