Proposed changes to the law which will make third-party vehicle insurance compulsory in Cambodia are to be welcomed in a country where traffic is a leading cause of death and injuries.
Traffic in Cambodia: the statistics
As most people in the Kingdom will acknowledge, Cambodia’s roads are dangerous. This is backed up by statistics from the UN.
In 2019, an average of 5.4 people lost their lives each day in road traffic accidents across the Kingdom. This alarming figure represents a 25% increase over the decade from 2009 to 2019, outpacing the population growth of 17% during the same period. It won’t surprise anyone to discover that 80% of road accidents in Cambodia involve motorbikes.
Given the high chance of being involved in a traffic accident, expatriates should be glad to hear that finally, over a decade after it was first proposed, third-party vehicle insurance should be compulsory from 2025.
The news was announced by the Director General of the Insurance Regulator of Cambodia (IRC), Bou Chanphirou, in an interview with Khmer Times.
New Insurance Legislation in Cambodia
Although there is currently no official date by which third-party vehicle insurance will become mandatory, it is hoped that it will be implemented sometime in 2025.
Mr Chanphirou emphasised the importance of preceding new legislation with an education campaign to inform drivers of the need for this type of insurance, not only to protect themselves financially but also to protect other road users. Cambodia Insurance Day 2024 was one of a series of events that aim to educate the driving public before third-party insurance is made compulsory.
Without a doubt, the proposed new policy will make Cambodian roads safer and hopefully bring down the number of accidents and fatalities.
Vehicle insurance in Cambodia: third-party versus fully comprehensive
Of course, there is absolutely no need to wait for the new legislation to be put in place to ensure that you have sufficient vehicle insurance coverage. Indeed, we recommend third-party insurance to all expatriates driving in Cambodia as an absolute minimum.
Third-party vehicle insurance provides coverage for damages or injuries that the policyholder may cause to another person, vehicle, or property in the event of an accident. However, it only covers the costs incurred by others. It does not cover any damage to the policyholder’s own vehicle or injuries they may sustain. This type of insurance is the minimum legal requirement in many countries, ensuring that individuals are financially protected if they are responsible for causing harm to others while driving.
Fully comprehensive vehicle insurance, on the other hand, protects against a wide range of potential risks. It not only covers third-party damages and injuries that the policyholder may cause to others but also includes protection for the policyholder’s own vehicle, regardless of fault.
This means that if your car is damaged in an accident, stolen, vandalised, or even affected by natural disasters, a fully comprehensive policy typically covers the repair or replacement costs. Additionally, it often includes benefits such as coverage for personal belongings inside the vehicle and sometimes even medical expenses.
Fully comprehensive insurance is of course more expensive, but the extra cost is well worth the peace of mind of knowing that you have the ultimate in protection against a variety of potential incidents on the road.
Vehicle insurance in Cambodia
Infinity Cambodia offers well-structured motorcycle and private car insurance to individuals and businesses.
With road accidents a common occurrence in Cambodia, make sure that you and your family are protected from the heavy financial costs that result from these including repairs, replacements and legal liability to third parties.
The benefits of arranging insurance through us include:
- A wide range of policies from the world’s leading insurers to choose from
- Outstanding levels of coverage at the lowest premiums
- Help understand the small print
- 24/7 English-speaking helpline in the event of an accident
- Comprehensive claims assistance
Our team has decades of experience finding expatriates in Cambodia comprehensive insurance solutions for expats in Cambodia and assisting policyholders with claims.
Don’t wait until third-party vehicle insurance is compulsory, protect yourself and your loved ones today with an affordable insurance policy for peace of mind. Contact us today for a quote.
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