BIA issues guidelines for compliance with motor insurance

The Bangladesh Insurance Association has requested the insurance companies, motor vehicle drivers, owners, institutions and the concerned authorities to implement the insurance policy in motor vehicles. This insurance organization has published this notification in several dailies on January 12, 2020.

The notification published by Bangladesh Insurance Association is as follows:

For the kind information of motor vehicle owners or organizations, it is being informed that the Road Transport Act 2018 has been implemented by repealing the Motor Vehicles Ordinance 1983.

Section 60 (2) of the Road Transport Act-2018 has made insurance compulsory for every motor vehicle and according to that section, Comprehensive Motor Insurance has to be taken for every motor vehicle which covers the loss or damage of motor vehicle including Third Party Insurance. . The clause is described below:

“60 (2) – The owner or organization of the motor vehicle shall insure the motor vehicle operated under it regularly and the loss or damage of the motor vehicle shall be covered by the insurance and shall be entitled to receive appropriate compensation from the insurer.”

In the wake of the promulgation of the Road Transport Act-2018, the Insurance Development and Regulatory Authority (IDRA) has canceled the insurance products related to third party insurance. As a result, no insurance company will issue a third party insurance risk insurance certificate, instead a Comprehensive Motor Insurance certificate.

Pursuant to Section 11 of the said Act, the police officer may summon the driver or owner of the motor vehicle for the purpose of giving an excuse for keeping false or forged documents in the sense of penal code, 464A of 1860, including motor vehicle insurance policy.

In this situation, all motor vehicle owners are requested to keep their vehicles safe and drive on the road with Comprehensive Motor Insurance Certificate.