STATE-RUN Myanma Insurance is expecting to pay at least K3 billion in compensation to more than 300 businesses that lost property during cyclone Nargis last month, said Dr Mg Maung Thein, the general manager of the insurance firm.

He said the estimate – which will be the highest amount paid by Myanma Insurance for a single disaster in its history – was based on surveys conducted in recent weeks of insured companies located in disaster-hit regions.

“We will make separate compensation payments because so many businesses were affected,” said Dr Mg Maung Thein. “We’ll start by taking care of 60 small industries at the beginning of this month.”

Although cyclone Nargis inflicted the majority of its damage on Ayeyarwady Division, most of the insured properties were located in industrial zones around Yangon.

“Twenty rice factories in Ayeyarwady Division had purchased storm insurance but the majority of insured properties were in Yangon,” said Dr Mg Maung Thein.

He said compensation processes were also underway for some local industries that carried policies through Myanma Insurance but backed by a foreign insurance company.

“Two expert groups from Singapore came last month to collect data at damaged sites and they have to come back to Myanmar again to continue the assessment process,” he said.

Dr Mg Maung Thein said insured companies that have completed the second stage of the compensation process – which entails a more detailed damage assessment that will enable a careful calculation of losses before compensation is paid – can contact Myanma Insurance for a cost assessment.

Myanma Insurance was also planning to pay compensation to six people who lost consumer products when a cargo vessel sank near Hainggyi Island as the result of the cyclone.

Additional compensation will be paid for damage to 13 vessels owned by Myanma Five Star shipping line that carried marine hull insurance.