It is with extreme sorrowfulness and regret I am writing this piece of article on the third party liability automobile insurance practices in Bangladesh. Prior to abolishment of the compulsory third party motor liability insurance I n the country back in 2019, all motor bikers have to maintain a motor third party liability insurance policy for the limit of liability of BDT 20,200 for death and BDT 50,000 for third party property damage claims. Despite the fact the said limit is very inadequate considering the risk exposures on the wheels.
Again it provides certain level of coverage for the innocent passers-by in the road who might be the victims of the driving faults of the bikers or the drivers of the motor vehicles.
Most unfortunately the insurance regulatory body – IDRA BD, the regulation maker for the insurance market has abolished the motor compulsory third party liability insurance policy, maybe in the expectation of the introducing the comprehensive motor insurance in the country. Obviously the move was positive and construction for the automobile industry and insurance sector of Bangladesh. But the products have not yet been brought to light due to unknown hurdles in the administrative process, which is really undesirable to the point of the public safety and security, particularly of the passers-by in the road.
According to the report in the daily financial express dated November 21, 2022, some 2003 bike crashes claims 2097 lives in the Jan-Oct 2022. Very shocking statistics is this as reported by Road Safety Foundation.
If there is insurance mechanism, the families who have suffered the loss of the parson would get certain financial benefits for running the family.
Some sort of protection would be in their favor through insurance mechanism, which now is fully absent and the passengers have been deprived of the financial benefits.
In order to protect hundreds of lives and to make sure financial benefits of the diseased families, the concerned authorities should take immediate steps to strict compliance to Road Safety Act 2018 and to introduce comprehensive compulsory motor I insurance for the motor bikes or vehicles owners.
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