The plane, carrying 63 passengers, was attempting to land at Heho airport in heavy fog when it had to make an emergency landing in a field next to the airport, The Daily Telegraph (Britain) reported.
"Because of the emergency landing near the airport, the plane broke up in the middle," a government official said, adding that passengers were evacuated.
"The cause of the accident is not clear yet. Only the pilots will know the cause, but we can't contact them yet as they have been sent to hospital," said Air Bagan spokesman Ye Min Oo.
The airline said a passenger on the plane and a motorcyclist on the ground were killed. Earlier reports said an 11-year old boy was killed also killed in the crash landing, Radio France Internationale reported.
Two Americans, two Britons, a Korean man and the plane's two pilots were also among the injured. They were taken to a local hospital for treatment.
The cause of the crash landing is under investigation.
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