Online Bike Insurance Bangladesh
Online motor insurance Bangladesh is now trendy and easy to buy for your motorcycle or private car. Bike insurance is an insurance product with which a bike rider can transfer his legal liability (that may arise in the road) to an insurance company by payment of money i.e. insurance premium. Motor insurance is a compulsory type of insurance in Bangladesh. A bike rider must have this insurance from the authorized insurance companies. In this webpage we have discussed ins and out of motor insurance products for motorbikes, private cars, buses, trucks etc.
The motor insurance companies in Bangladesh
The history of motor insurance dates back in 1972 when Bangladesh got independence. Out of 46 General Insurance company in Bangladesh, top five or six are reputed for prompt settlement of Insurance claim, which should be noted by a purchaser of bike insurance. Again all insurance products must be purchased from the reputed companies who have been rated by the reliable credit rating agencies of Bangladesh.
For BikeInsurance clients, we have compiled a list of top 10 motor insurance companies in the country. They offer different types of motor insurance in Bangladesh such as ‘Private vehicle Insurance’, ‘Commercial vehicle Insurance’, ‘Act liability Insurance’.
How to buy online bike insurance:
BikeInsurance has made buying of insurance as simple as possible because of which the bike rider now can purchase their insurance policy online using our web applications spending 3 to 5 minutes on the mobile device or PC (Personal Computer).
From the above three policies, ‘Act liability insurance policy’ is usually purchased by the motorbike riders largely due to its compulsory nature and its cheap price. This policy can be purchased only at BDT 250-300. However; the actual price depends on the motorcycle engine’s power’s values of the bike involved etc
Here are the 05 steps to purchase bike insurance online in Bangladesh
- Filling up the form by giving General information
- Going for payment option online
- Submitting the data to the server online
- Downloading PDF policy document from your email (usually within two working hours)
- Getting the hard copy of the policy document to your address (you mentioned in the General Information section under Serial no. 1 above).
Cost of buying and renewing the motor insurance policy
Maintaining your insurance policy is a continuous duty on the part of riders. So, it is wise to have the proper insurance backup and renew it every year from the reputed insurers who have the highest claim pay-ability it in the market.
By purchasing insurance, you can virtually transfer your legal liabilities to the insurance company. By payment of premium to them, you liabilities up to a certain financial limit would be borne by insurers.
The money you pay them to the insurer is called ‘premium’. It is fixed by the government bodies commonly known as ‘Central Rating Committee’ of Bangladesh led by IDRA, the insurance regulator in the country. The CRC produces the tariff for the motor insurance products in Bangladesh. The insurance companies are bound to use the tariff guideline for setting the price for selling insurance products to the bike riders or motorcycle owners.
Price chart for motor insurance
The price shown below is applicable only to third-party policy only. For comprehensive insurance, the price will be higher than those mentioned in the below chart.
|Types||CC (Cubic capacity)||Act Liability Premium|
|Bike/Motorcycle||UP to 150 cc||Taka 224|
|UP to 250 cc||Taka 259|
|UP to 350 cc||Taka 293|
|Private vehicle||UP to 1300 cc||Taka 414|
|UP to 1800 cc.||Taka 529|
|UP to 3000 cc||Taka 644|
|UP to 3000 cc||Taka 759|
|Toyota Hiace||UP to 1300 cc||Taka 776|
|UP to 1800 cc||Taka 891|
|UP to 3000 cc||Taka 1006|
|UP to 3000 cc||Taka 1121|
|Noah Micro Bus||UP to 1300 cc||Taka 559|
|UP to 1800 cc||Taka 684|
|UP to 3000 cc||Taka 799|
|UP to 3000 cc||Taka 914|
Besides; you can enjoy discounts under comprehensive motor insurance if you do not make any claims in a consecutive three years. The calculation of the discount as simple as mentioned here.
Documents required for buying insurance
Here the requisite document for purchasing motor insurance in Bangladesh:
- National ID card of the rider
- Blue book of the bike
- Driving license of the rider
- Purchasing invoice for the motorbike
- Passport size photograph of the rider (two copies are sufficient).
In addition to the above information, an insurance agent can ask for the following information from the riders:
- The length of self-driving
- The experience of the driver
- Any past insurance policy
- Qualification for the no claim bonus
- Inquiry about any past declinature from the insurance company
- The possible use of the motorcycle (social or professional)
- Whether you made an insurance claim in the last 3 years
Liability versus Comprehensive
Actor ability insurance policy in Bangladesh is a common one and this insurance is arranged in accordance with the motor vehicle Amendment Act 1991. This policy offers the basic coverage that is involving the liability of the riders to the third parties in the course of driving the bike. It means that during driving the bike, the rider may harm any third party involving any physical damage or bodily injury or even death. If the riders do harm or cause loss or damage to the third party, the insurance policy acts for the policyholders. Motor vehicle amendment 1991 suggests the liability of the Raider is limited to the Bangladeshi taka 20000 for death and Bangladeshi taka 10,000 for physical injury to the third party.
On the other hand; comprehensive insurance policy covers damage to the motorcycle itself and other loss or damage to the third party. The own damage limit of comprehensive covers basically depends on the value of the motorbike itself. For wider policy, you have to show the actual value of a motor vehicle and here you have to show the purchasing invoice because the price will be calculated on the basis of the vehicle value.
ACT ONLY LIABILITY INSURANCE POLICY: THE CHEAPEST INSURANCE IN BANGLADESH
In insuring your motor vehicles, you can do it at the cheapest price by simply getting coverage of the liability which has been made compulsory by the Bangladeshi law. This basic cover is known to all as Act Liability Policy.
In the page, we have shown the coverages and premium and other relevant information about the “Act Liability Policy”. You may already know that insurance coverage is a legal matter. We have presented the topic in a naive way for an easier understanding of this financial services in the simple English.
Let’s have a look at the following paragraph for knowing the basic coverage details.
WHAT IS ACT LIABILITY POLICY?
The Act only liability policy is the cheapest insurance policy one can purchase. This policy is also known as the Motor Third-Party Insurance Policy. The policy provides protection in terms of the Motor Vehicles Act, to cover ACT liability.
This policy covers bodily injury and or death and property damages. The scope of cover is to pay compensation for the death of or bodily injuries to third parties and damage to the property of third parties.
While the insured is treated as the first party and the insurance company second party, all others would be the third party. The Act only liability policy applies uniformly to all classes of vehicles. This is a compulsory cover usually added to other types of motor insurances such as ‘Commercial Vehicle Insurance’ and ‘Private Car Insurance’.
As per the requirement of the Motor Vehicle Act, while compensation for personal injuries to third parties are as follow;
- a) Death of or bodily injury to any person and/or Passenger or and property
1) Death………………………………………………………………………………. Tk. 20,000.00
2) Severe injury. ………………………………………………………………….. Tk. 10,000.00
3) Any other injury/hurt…………… ……………………………… …………….. Tk. 5,000.00
Property damage is limited to ………………….………………………………… Tk. 50,000.00
Besides; the policy also provides for the death of or bodily injuries with respect to paid drivers (workmen) engage in driving or maintenance of the vehicle. The compensation payable is limited to the provisions of Workmen’s Compensation Act.
Motor Vehicle Act provides that no person shall use (except as a passenger), or allow any other person to use, a motor vehicle in public place unless the vehicle is covered by a policy of insurance complying with the requirement of the Act.
The public place has been defined as a road, street, way or another place, whether a thoroughfare or not, to which the public have a right of access and includes any place or stand at which passengers are picked up or set down by a stage carriage.
It is to be noted that it is not only driving of the vehicle without insurance which will contravene the Act. The mere presence of a motor vehicle in a stationary condition in a public place will constitute the use. Secondly, the use should be made in a public place as defined earlier. Any place where the public has a right of access is considered as a public place.
LEGAL MATTERS RELATING TO ACT LIABILITY INSURANCE POLICY:
The Motor Vehicle Act requires that the policy of insurance must cover: –
- Against any liability which may be incurred by the insured in respect of the death of or bodily injury to any person, or
- Damage to any property of the third party; or
- Against death or bodily injury to any passenger of a public service vehicle. cause by arising out of the use of the vehicle in a public place.
Whereas Workmen’s compensation Act imposes a liability on the employers to pay compensation to the workman for accidents arising out of and in the course of employment, it does not make it compulsory for the employers to ensure that risk.
But the Motor Vehicle Act makes it compulsory for the owners of the vehicle to ensure their liability under the workmen’s compensation act towards certain categories of workmen employed in connection with motor vehicles.
Liability towards fare-paying passengers is required to be compulsorily insured. The Act thus recognizes motor vehicles owner’s responsibility toward passengers who pay for their carriage in the vehicle.
Compulsory insurance is also required in respect of passengers who are carried by reason of or in pursuance of a contract of employment.
“ACT ONLY” LIABILITY POLICY
(Applicable to all classes of vehicles with suitable amendments in ‘Limitations as to Use’)
Whereas the Insured by a proposal and declaration dated as stated in the schedule which shall be the basis to this contract and is deemed to be incorporated herein has applied to the Insurer for the Insurance hereinafter contained and has paid or agreed to pay the premium as consideration for such insurance in respect of events occurring during the period of Insurance.
Now this policy witnessed:
That subject to the terms, exceptions, and conditions contained herein endorsed or expressed hereon.
Liability to third parties:
- Subject to the limit of liability, the Insurer will indemnify the insured against all sums including claimants cost and expenses for which the insured shall become legally liable to pay as per provision of the Act, under the following circumstances:-
- i) in respect of the death of or bodily injury to any person or damage to any property of third party caused by or arising out of the use of the Motor Vehicle in a public place.
- ii) in respect of the death of or bodily injury to any passenger of public service vehicle caused by or arising out of the use of the Motor vehicle in a Public place.
The Liability as described in (i) and (ii) above under the policy will be as follows: –
- a) Death of or bodily injury to any person and/or Passenger or and property
1) Death………………………………………………………………………………. Tk. 20,000.00
2) Severe hurt.. ………………………………………………………………….. Tk. 10,000.00
3) Any other hurt…………… ……………………………………… …………….. Tk. 5,000.00
- b) Property damage ……………………………………………………………. 50,000.00
- The Insurer will pay all costs and expenses incurred with its written consent.
- In terms of and subject to the limitations of this policy, the Insurer will indemnify any driver who is driving the motor vehicles on the insured’s order or with his permission provided that such driver:-
(a) is not entitled to indemnity under any other policy
(b) shall as though he were the insured observe fulfill and be subject to the terms exceptions and conditions of this policy in so far as they can apply.
- In the event of the death of any persons entitled to indemnity under this policy the Insurer will in respect of the liability incurred by such person indemnify his personal representatives in the terms of and subject to the limitations of this policy provided that such personal representative shall as though they were the insured observe fulfill and be subject to the terms exceptions and conditions of this policy in so far as they can apply.
- The Insurer may at its own option:
(A) arrange for representation at any inquest or fatal Inquiry in respect of any death which may be the subject of indemnity under this policy and
(B) undertake the defense of proceedings in any Court of Law in respect of any act of alleged offense causing or relating to any event which may be the subject of indemnity under this policy.
Avoidance of certain terms and right of recovery
Nothing in this policy or any endorsement hereon shall affect the right of any person indemnified by this policy or any other person to recover an amount under or by virtue of the provisions of the M.V. Act 1991 section 112.
But the insured shall repay to the company all sums paid by the insurer which the insurer would not have been liable to pay but for the said provisions.
Application of limits of indemnity
In the event of an accident involving indemnity to more than one person any limitation by the terms of this policy and/or of any endorsement thereon of the amount of any indemnity shall apply to the aggregate amount of indemnity to al! persons indemnified and such indemnity shall apply in priority to the insured.
GENERAL EXCLUSIONS UNDER THE POLICY
1. The company shall not be liable in respect of any claim arising whilst the vehicle insured herein:
- being used otherwise than in accordance with the ‘Limitations as to Use’, or
- being driven by or is for the purpose of being driven by him/her in the charge of any person other than a driver as stated in the Driver’s Clause.
- The insurer shall not be liable in respect of any claim arising out of any contractual liability.
- Except so far as is necessary to meet the requirements of the M.V. Act, the company shall not be liable in respect of death arising out of and in the course of employment of a person in the employment of the insured or in the employment of any person who is indemnified under this policy or bodily injury sustained by such person arising out of and in the course of such employment.
- Except so far as is necessary to meet the requirements of the M.V. Act, the company shall not be liable in respect of death or bodily injury to any person (other than a passenger carried by reason of or in pursuance of a contract of employment) being carried in or upon or entering or mounting or alighting from the motor vehicle at the time of the occurrence of the event out of which any claim arises.
- The Insurer shall not be liable in respect of death or bodily injury caused or contributed to by conditions of war, civil war, riot or civil commotion.
- The Insurer shall not be liable in respect of any liability of whatsoever nature directly or indirectly caused by or contributed to by or arising from ionizing radiations or contamination by radioactivity from any nuclear fuel or from any nuclear waste from the combustion of nuclear fuel. For the purposes of this exceptions, combustion shall include any self-sustaining process of nuclear fission.
- The Insurer shall not be liable in respect of any liability directly or indirectly caused by or contributed to by or arising from nuclear weapons material.
- The Insurer shall not be liable in respect of death or bodily injury caused sustained or incurred after any variation in or termination of the insured interest in the Motor Vehicle.
- The Insurer shall not be liable in respect of the death of or bodily injury to any person or damage to any property of a third party which was not in a public place at the time of the accident. Except in the case of any act or omission which led to the accident occurred in a public place.
- The Insurer shall not be liable to pay in respect of damage to property belonging to the insured or held in trust by or in the custody or control of insured.
CONDITIONS OF THE INSURANCE
This policy and the schedule shall be read together and any word or expression to which a specific meaning has been attached in any part of this policy or of the schedule shall bear the same meaning wherever it may appear.
- The notice shall be given in writing to the insurer immediately upon the occurrence of an accident and in the event of any claim. Every letter claim writ summons and/or process shall be forwarded to the insurer immediately on receipt by the insured. The notice shall also be given in writing to the Insurer immediately the insured shall have knowledge of any impending prosecution inquest or fatal inquiry in respect of any accident which may give rise to a claim under this policy.
- No admission offer promise or payment shall be made by the insured without the written consent of the insurer which shall be entitled if it so desires to take over and conduct in the name of the insured the defense or settlement of any claim or to prosecute in his name for its own benefit any claim for indemnity or damages or otherwise and shall have full discretion in the conduct of any proceeding or in the settlement of any claim and the insured shall give all such information and assistance as the insurer may require. If the insurer shall make any payment in settlement of any claim and such payment includes any amount not covered by this policy the insured shall repay to the insurer the amount not so covered.
- The Insured shall take all reasonable steps to maintain the Motor Vehicles inefficient condition and the insurer shall have at all times free and full access to examine the motor vehicle or any part thereof or any driver or employee of the insured.
- The Insurer may cancel this policy by sending seven days’ notice by registered letter to the insured at his last known address and in such event will return to the insured the premium less the pro rata portion thereof for the period the policy has been in force or the policy may be cancelled at any time by the insured on seven days’ notice and (provided no claim has arisen during the then current period of insurance) the insured shall be entitled to a return of premium less premium at the short period rates for the period the policy has been in force.
- If at the time any claim arises under this policy there is any other existing Insurance covering the same liability the Insurer shall not be liable to pay or contribute more than its rateable proportion of any compensation costs or expense. Provided always that nothing in this condition shall impose on the Insurer any liability from which but for this condition it would have been relieved under the provisions of proviso (a) of paragraph 3 of this policy.
- All differences arising out of this policy shall be referred to the decision of an Arbitrator to be appointed in writing by the parties in difference or if they cannot agree upon a single Arbitrator to the decision of two Arbitrators one to be appointed in writing by each of the parties within one calendar month after having been required in writing so to do by either of the parties or in case the Arbitrators do not agree of an Umpire appointed in writing by the Arbitrators before entering upon the reference. The Umpire shall sit with the Arbitrators and preside at their meeting and the making of an award shall be condition precedent to any right of action against the Insurer. If the insurer shall disclaim liability to the insured for any claim hereunder and such claim shall not within twelve calendar months from the date of such disclaimer have been referred to arbitration under the provisions herein contained then the claim shall for all purposes be deemed to have been abandoned and shall not thereafter be recoverable hereunder.
- The due observance and fulfillment of the terms conditions and endorsements of this policy in so far as they relate to anything to be done or complied with by the insured and the truth of the statements and answers in the said proposal shall be conditions precedent to any liability of the Insurer to make any payment under this policy.
Quite recently the digitalization process of Bangladeshi financial market has a huge impact on the purchase of insurance or the behavior of insurance customers. Nowadays people search for insurance product in the search engine where Bike Insurance is ready to serve the millenials. They look for comparing insurance products through online tools like us. In the research, motorbike insurance deserves special mention. Howsoever; we are here to support their digital initiatives to purchase bike insurance online.
Please feel free to contact us for buying your insurance for private car or motorcycle.