Korea-based Skywings Asia Airlines yesterday bought aviation insurance from Cambodia-Vietnam Insurance, becoming the first foreign-owned company to hold a Cambodian air insurance policy.
Steve Kim, managing director of the airlines, said yesterday that CVI’s good performance with other airlines had led to the decision to co-operate with the company.
“They insure other airlines so we can trust them,” Kim said in Phnom Penh.
CVI insures Helistar and Cambodia Angkor Air, both of which are Cambodian-owned firms, CVI CEO Cao Minh Son said yesterday.
He said the aviation is a large industry in the Kingdom and offers potential in the way of insurance. Concerns about CVI’s ability to cover air disasters has led foreign-owned airlines away from purchasing Cambodia’s aviation insurance Chhay Rattanak, General Insurance Association of Cambodia chairman, said yesterday.
“[Foreign airlines] mainly buy insurance abroad because they think we don’t have enough capacity to repay on insurance claims,” he said.
The CVI is a join-venture investment between Vietnamese shareholders and two local Cambodian firms.