Insurance Gaining in Importance in Cambodia’s Construction Sector

• 2 November 2018
• Local News
• 1597 Views

With the rapidly increasing construction activities across the country, the insurance market is gaining in importance and relevance.

On 01 November, 2018, EuroCham hosted a breakfast talk on ‘Construction Insurance Policies in Cambodia’ that provided detailed information on the importance of having insurance for construction projects.

Speaking to the audience of around 40 people, Mr Charles Amar, Manager, Vice-Chairman of EuroCham Real Estate & Construction Committee and Manager at Bun & Associates, emphasised the importance of taking out insurance.

“Construction booms therefore construction insurance is important”, he said.

In addition to the insightful presentation about the construction insurance policies available in Cambodia, Mr Charles Amar highlighted the compulsory ‘civil liability’ insurance for damages to third parties.

While stressing the risks associated with any construction project and things to be considered before taking any insurance, it is compulsory for developers or contractors to take out construction insurance [civil liability] before starting any projects to avoid fines or project suspension.

“If you don’t have it, they [the authority] can suspend your project”, Mr Amar explained, while adding that despite limited inspections at this time, the authorities do have the power to take this action.

Speaking on the importance of taking construction insurance, Mr Meas Savong, Founder & CEO of Grace Trading who also participated in the event, said he is planning to take out insurance for his project upon gaining this insightful information regarding the construction policies.

“This event was very good; now I know what insurance to take out for my project” he said.

• Analysis
• Laws and Regulation