MYANMA Insurance is planning to pay compensation to Air Bagan for damage to an aircraft that ran off the runway in Putao last week, injuring three people.

Dr Mg Maung Thein, the general manager of Myanma Insurance, said the compensation payout to Air Bagan was subject to approval by the underwriter, an unidentified foreign insurance company.

“We are planning to pay compensation for the accident because the aircraft carried aviation insurance with Myanma Insurance and was backed by a foreign insurance company. The compensation payout for the aircraft accident is still being processed,” he said.

But the accident site is yet to be examined by the underwriters and there are no guarantees compensation will be paid to the airline.

“Authorities from the foreign insurance company will come and see the accident site and then they will consider the payout. The [foreign] company will also pay compensation to the people who were hurt in the accident, according to the extent of their injuries,” he said.

The Air Bagan aircraft overran the runway on February 19 during takeoff from Putao airport in northern Kachin State, a spokesperson from the airline said.

The 70-seat ATR-72 aircraft was carrying 57 passengers at the time.

Myanma Insurance has paid out more than K80 million in comprehensive motor, third-party, travel, marine cargo and seamen life insurance since the beginning of this year.