The huge number of motorbikes damaged by storm Usagi in Ho Chi Minh City last week is seen as a great opportunity for insurance firms to fill a gaping hole in the market by developing motorbike insurance policies.
A huge number of motorbikes were damaged by storm Usagi in Ho Chi Minh City last week
For days after the floods from storm Usagi, motorbike repair shops across the city have been overloaded. While compulsory motorbike insurance only offers compensation if drivers get in accidents, only a few locals purchased physical insurance covering fire and flood damage.
According to the latest statistics of the Vietnam Association of Motorbike Manufacturers (VAMM), the total number of motorbikes in Vietnam hit 52 million. However, only one per cent of motorbike users buy extra motorbike insurance, according to Liberty Insurance Vietnam Limited Company.
The little interest in motorbike insurance is also the main reason behind people having to pay VND700,000-1 million ($30.4-43.5) per repair, according to the insurer.
With the huge number of local motorbike riders, the awareness forphysical insurancepresented by storm Usagi is a golden opportunity for insurance firms. Thus, it is high time for insurance firms have to change strategies and lay down on local motorbike users.
In fact, the majority of insurance firms already said that the relatively small value of motorbikes is the main reason behind the disinterest in physical vehicle insurance, while car owners are far more eager to buy insurance.
Dantri.com.vn cited Liberty Mutual Insurance’s (the parent company of Liberty Insurance Vietnam) representative as saying that the company has received nearly 1,000 calls from customers after the storm Usagi, mostly about car rescue and information enquiries. This was a record number of requests in the past several years.
Vtv.vn stated that the majority of people only buy vehicle insurance because it is compulsory, without even knowing what coverage it offers.
In Vietnam, vehicles are required to purchase compulsory insurance that covers accidents. Additionally, most automobile owners buy voluntary insurance to cover physical damage, including the vehicle and parts damaged by natural disasters or certain unexpected accidents.
By Van Mai
- HSBC puts Vietnam insurance business up for sale: sources
- HSBC says it may sell Vietnam insurance business
- US sees no 'game-changer' in China's emissions goal
- Localization: The game-changer of Vietnam’s manufacturing industry
- Russia's air war in Syria a game-changer for US: experts
- US deploys 'game-changer' weapon to Afghanistan
- Syria sees Russia game changer, US-trained rebels enter fray
- Apple's next iPad may be a 4G game changer
- Insurance business permitted to open a maximum of 20 branches
- Switzerland helps improve Vietnam's insurance business capacity