The government gave up liability protection for third parties in the case of transportation. As a result, all kinds of cars, bikes and others, will now be used without insurance. The removal of third party liability insurance, in the case of transportation, would have a significant negative effect on general insurance companies’ profits.
They claim nearly all motorcycle insurance is third party insurance in Bangladesh. Third parties are insured for public transport. Although some private automobile insurers are first parties, most of them are third parties. The loss of third party insurance would lead to nearly all income generated by auto insurance from the general insurance companies.
According to those affected, 10% of the general insurance firms’ annual premium revenue is derived from auto insurance. Many of the bikes come from. The amount of claims paid to these insurance providers is also very low because almost the whole portion of it is a third party. As a consequence, almost all engine insurance firms have earnings. Now that third-party insurance is implemented, companies will lose this premium revenue.
The explanation for the lack of auto insurance premium revenue is that first-party insurance is only available because third-party insurance is abolished. And insurance for first parties is not mandatory. The premium rate of premium insurance, on the other hand, is very high. This inevitably leads the owners of motor vehicles to move away from insurance.
The source states that liability insurance by the third party was mandatory pursuant to Section 109 of the Ordinance on Motor Vehicles 1983 and a levy pursuant to Section 155 was introduced. However, third-party insurance was discontinued under the latest Road Transport Act 2018.
Instance Case
The Bangladesh Road Transport Authority (BRTA) recently pointed out that there is no opportunity to file a lawsuit against the owner of a motor vehicle or motor vehicle in question without third-party insurance. The notice from the BRTA has been transmitted to the Inspector General, all Metropolitan Police Commissioners and Highway Police Chiefs.
Registration is obligatory to insure motor vehicles, according to sources from the insurance industry. This ensures that all licensed motor vehicles are registered. In 2015, Tk 362.16 crore, which is 9.14 percent of the company’s overall premium revenue, was received by general insurance companies in the country operating in insurance vehicles. During the year, the general insurance companies received Tk 4,179,22 in total premium revenue.
However, general insurance companies once received an insurance premium of around 12.5 percent. In 2016 and 2017, however, the premium insurance rates of general insurance firms for motor vehicles decreased to less than 10%.
Picture of profits of motor vehicle insurance general insurance providers
Premium Year Total
Percentage of engine insurance
Payment of the engine argument
3621.75 9.14 949.7 2018 41792.23
36,51 3613,6 9,75 960,33 2018 36,51.
3448.612.48 743.93 2018 2627.48
328.6 12.48 72.6 2015 2638.95
2014 24440.39 2643.75 11.64 sixty-seven.
According to BRTA sources, 45 lakh 23,600 motor vehicles are registered in the meantime.30 of them are motorcycles, 32 thousand 559 crore. This year (until August), two lakh 21,990 new motor vehicles were registered, including one lakh.89,140 motorcycles. For these licensed motor vehicles, third parties’ liability insurance became compulsory prior to the current BRTA guidelines. For these motor vehicles, no insurance is now compulsory.
The BRTA Director (Engineering) was told when he was called. Lokman Hossain Mollah told Jago News that third party insurance had been abolished by statute. Now only first party insurance is available. In all nations, first-party insurance is optional. It doesn’t have to be compulsory. As a result, even if he does not want to, the owner can insure his transport.
The CEO of the central insurance company (CEO) said when he was called. Khan told Jago News that during our last meeting with the Prime Minister, it was also mentioned that comprehensive insurance by eliminating third-party insurance should be made compulsory. Now, the legislation does not make complete insurance compulsory but excludes third party insurance for transport insurance. In the event of travel, insurance is also not obligatory.
Agent-1 Insurance
He said that the removal of third-party insurance would have a significant adverse effect on the revenue of the general insurers. Since nearly all engine insurance is third party insurance in Bangladesh. Low premium third party insurance can be made. You have to pay a heavy premium to insure the first party. Customers would still not be motivated to insure now because transportation insurance is not compulsory.
QAFM QAFM Pioneer Insurance consultant Syrajul Islam said to Jago News that almost half of our country’s motorcycle insurance is owned by third parties. Most private vehicles, buses, minibuss, trucks and other transportation insurance is provided by third parties. The insurance is very poor, comprehensive or first party. The reason for this is that the overall insurance premium is very high. I believe that the overall premium rate of insurance should be decreased.
He said the car that I got would have been insured by a third party for 500 rupees. Now it costs approximately Rs 42,000 to fully insure the vehicle. With so much money, who’s going to insure it?
It is also necessary for Rs 225 to insure a third-party motorcycle. Comprehensive insurance costs around two and a half thousand rupees for a motorcycle worth one lakh rupee.The general insurance expert also says that if the price of an engine is greater, the insurance premium rate would be higher.
What’s in the latest road transport legislation on insurance?
In paragraphs (1) (2) and (3) of section 80 of the new law, different information on motor vehicle insurance has been given. These three paragraphs are the following:
> > > Any motor vehicle’s owner, or organisation, can insure the life and possessions of the number of passengers indicated for the transport of any motor vehicle that it owns, where it so wants.
> > > The motor vehicle owner or company is responsible for insuring the motor vehicle operating regularly and for insurance coverage of loss or harm to the motor vehicle. The insurer has the right to compensation.
> > > For a car which has fallen or been destroyed in an accident, there can be no payout from the financial assistance fund established under Section