Logo of Phnom Penh Post newspaper Phnom Penh Post - Decree to define Caminco role

Decree to define Caminco role

Decree to define Caminco role

T HE state-owned insurance company Caminco submitted a decree to the Council of Ministers asking for controls on private insurance companies, which currently enjoy a free hand.

The decree drawn up by Ung Tang Im, Caminco's director also asks for a government insurance department to be set up which will clear up ambiguity about Caminco and make it purely a state-owned firm.

Currently Caminco's role is unclear, though like all insurance bodies it ultimately falls under the jurisdiction of the Finance Ministry. Im said he expected the decree to be passed in early September.

Im explains: "Now Caminco has an ambiguous role. It is supposed to be only a company, but as this is the only state specialist on insurance, it works also as a kind of unofficial insurance department for the Ministry of Finance.

"Thus the Ministry will have control over a real department which is the framework to issue concrete laws on insurance. As explained in Articles 2 and 3, it will have study and control offices [for the insurance industry].

He added that the control office would ensure that companies seeking to establish themselves in Cambodia would have the proper qualifications, a minimum number of skilled staff, a reasonable amount of funds for payouts and proper investments within Cambodia.

"This will avoid both junk companies and the flight of capital overseas," Im said. The regulations will require companies to spread their investment across a range of fields.

The study office will not only collect statistics on the industry but also get the proper documents and infrastructure for registration.

"With these 'consultants' [in the study office] we intend to foster the development of a modern insurance system.

Philippe Lenain, director of Indochine Insurance Union in Phnom Penh, adds: "The government has mostly adapted for Cambodia the Malaysian and Singaporian insurance systems which have a very strict and complete control over all the agencies. For example, if you insure a building made of brick or of wood, your commission rates are controlled and different.

"For a developing country, such a control is often the only way to avoid any deviation [in terms of money laundering]. Indeed an insurance company, as it deals only with papers, is a very convenient structure to clean suspiscious money."

Even under the new decree the status of Caminco, which began operations in 1989, remains partly unclear. Im said it was up to the Ministry of Finance whether the reconstituted Caminco would have special rights as compared to private companies.

MOST VIEWED

  • New US bill ‘is a violation of Cambodian independence’

    After a US congressmen introduced bipartisan legislation that will enact sanctions on Cambodian officials responsible for “undermining democracy” in the Kingdom, government officials and the ruling Cambodian People’s Party on Sunday said they regarded the potential action as the “violation of independence and sovereignty

  • Long way to go before Cambodia gets a ‘smart city’

    Phnom Penh, Siem Reap and Battambang will struggle to attain smart city status without adopting far reaching master plans, according to officials tasked with implementing the program. The brainchild of the Association of Southeast Asian Nations (Asean), the smart city program seeks to link up

  • Japan bank buys major stake in ANZ Royal Bank

    Japan's largest bank acquired more than half of ANZ’s shares in Cambodia on Thursday, according to a statement from Kith Meng’s Royal Group. Japan's JTrust Bank, announced that they had acquired a 55% of stake in ANZ Royal Bank. According to a Royal Group

  • Ministry’s plan for net sparks fears

    The government has ordered all domestic and international internet traffic in the Kingdom to pass through a Data Management Centre (DMC) that has been newly created by the state-owned Telecom Cambodia, in a move some have claimed is an attempt to censor government critics. Spokesman