Car insurance, which comes under the car insurance policy, is compulsory in Bangladesh. It provides financial assistance to the car owner to handle situations like repair costs due to accident, theft or damage to the vehicle.
This insurance plan includes compulsory third party coverage to manage any injury or damage to any other person, vehicle or property caused by the insured vehicle.
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Car insurance: How to file for eligibility criteria, coverage, exclusion and claims
Car insurance type
A car insurance can be divided into 4 broad categories. They:
Broad policy: This is an all-inclusive plan that provides full coverage for all risks related to car, first party, co-traveler and third party. It provides coverage against all natural disasters or man-made disasters, including earthquakes, landslides, floods, strikes and riots.
Co-traveler Safety Coverage: Some insurance providers offer personal accident coverage for co-travelers, although this can be obtained by paying an additional premium. You can get 100% compensation for the death of a passenger or driver. 100% compensation can be claimed in case of any permanent disability due to any injury.
Third Party Liability Insurance: Bangladeshi law makes it compulsory for everyone to purchase this policy. It provides coverage against liability arising from any damage to third parties and property by the insured vehicle.
Personal Risk Coverage: A policy usually provides coverage only for car owners. However, instead of a driver, anyone with a valid license can also cover personal injury by purchasing a coverage rider.
Does it cover everything?
The including provided by car insurance generally different type of provider to provider. However, some situations and cases cover almost everyone. Let’s take a look at some points:
The car insurance policy provides protection to the driver / owner of the vehicle in case of an accident while driving
It covers any legal or financial liability arising out of injury to a person or damage to another vehicle or property by the insured vehicle
The policy covers any loss or damage to the vehicle for the following reasons:
Accidental and external damage
Fires and explosions
Riots and strikes
Robbery, house breaking, theft
Natural disasters like earthquakes, landslides, storms and floods
How does car insurance work?
This is to understand how car insurance works. This will help you to better plan for the coverage you need.
First you need to select the cover you need for your car. It depends on the type of car you have, where you live and its engine power. Since third party insurance is compulsory, the policyholder has the option to choose between a comprehensive policy and personal accident cover.
The insurer then inspects the vehicle to calculate the Insured Declared Price (IDV) considering various factors such as vehicle brand, model number, year of manufacture, claim history, etc.
In the event of an accident, vehicle damage or loss, the policyholder must first notify the insurance company by calling the toll-free number.
For the purpose to process the claim, he / she must also submit the required documents for reimbursement
In case of cashless claim process, the insurer’s surveyor will analyze the estimates prepared by the garage and pay directly to the garage after the repair.
In the payment claim mode, you have to pay after the repair and the provider will pay later
Getting car insurance is essential for all types of vehicles, old or new, as well as third party ins: coverage. To be eligible for this insurance, a person must be 18 years of age or older, be a citizen of Bangladesh, have a driving license and have a car RC.
In any case, you need to make a claim to the insurance company to get compensation for the financial loss. It is understandable to understand the steps to take with the claim process.
The first step when applying for a claim is to notify the insurer immediately after an accident or loss or theft. You can then apply for the claim by producing relevant documents such as a claim form, a copy of the vehicle registration (RC) and other documents.
A person can also get cashless claim by repairing his car in the garage under the insurance provider’s network. Repairs and replacements in network garages provided by ins: companies are cashless
If the policyholder drives his car to a garage that is not covered by the network, he will have to pay for the claim which can later be paid by the insurance company.