Ahmed Saifuddin Chowdhury :
Act Liability Motor Insurance or third-party motor insurance is currently closed due to the Road Transport Act-2018. In the present scenario, owners of vehicle group seem as benefited, but in reality, they would be losers in the long run. Due to cancellation of Act LiabilityMotor Insurance, the insurance sector is a loser. On the other side, the Government is losing revenue in crores taka. Besides that, there is no system to meet the security and financial loss of the people. Owners are also not getting protection from financial loss due to lack of insurance. Earlier under the Act LiabilityMotor Insurance if any Client died in an accident, for individual person Taka 20,000.00 was allowed to benefit and Taka 50,000.00 in case of property damage were given as compensation, which is very insignificant compared to the present time. This insurance should be updated rather than discontinued.
Earlier the insurance company was paying the claim, if the claim is filed with all the documents required to get the Act Liability MotorInsurance claim. Claims are not being paid by the insurance companies, that allegation is a misconception. Act liability Motor Insurance is continuing in the almost countries of the world, no vehicle can drive without this insurance. By which way the passengers and pedestrians die in accidents in different parts of the country, the Government often subsidizes for that. But it was committed to be provided by the insurance companies and it was necessary to make it easier for the beneficial person how to get his compensation under the insurance.
If the Policy of the Act Liability Motor Insurance can be brought again into the insurance sector by modernizing it keeping peace with the world, it will collaborate in increasing the penetration of the insurance sector. A good perception of our insurance products will create in the world. Or if anycar goes to India from our country, can it cross the border without motor insurance or Act LiabilityMotorInsurance? Really, the words are being said here to explain the need for Act Liability motor Insurance. Again, which damage caused by a boat or ferry accident in Bangladesh, it can be covered through insurance. People’s lives may not come again, but when the sole breadwinner of a family dies, no one can understand the condition of the said family except the victim. As a result, if these vehicles are covered by insurance, the victims will benefit. Even vehicle owners who have lost business capital they can benefit from this source.
Another topic, society will be beautiful if there are social responsibilities. If everyone has a sense of responsibility then others can also benefit from it. But there is no aim of insurance. Insurance works for that aim and goal. If the affected person gets the compensation of his property, he may be interested in work again with new enthusiasm and curiosity; if it is not done, then he is being destroyed yourself, it also heard constantly in the society.
On and above my concept to implement of Act Liability Motor Insurance product which should be modified for people to buy and my suggestion is that to change third party insurance benefit continuing with the market demand that is,
a) Benefit of individual person death should be Taka 2,00,000/- instead of Taka 20,000/-.
b) Property damage coverage should be Taka 3,00,000/- instead of Taka 50,000/-.
And also simplify the claims settling procedure with the following documents as mandatory:
01. General Diary (GD) in Police Station.
02. Investigation officers (IO) Report.
03. Death Certificate should be taken from Chairman/Commissioner of Union Parishad/ Pourasava/Municipality from respective area.
04. Death Certificate should be taken from Hospital/ Registered Doctor.
05. A copy of NID in case of adult.
06. In case of property damage, Police Report should be considered as valid document.
In case of reduce of Act premium we may impose of voluntary excess as below:
a) If client agree to reduce 30 per cent of benefit for each and every loss than 40 per cent premium may be discounted from the net premium.
b) If client agree to reduce 50 per cent of benefit for each and every loss than 45 per cent premium may be discounted from the net premium.
At last, I want to talk about that, it is being, what the government is said about the contribution of the insurance sector to GDP as per insurance rules 2014,to implement it, it is obliged/compulsory/necessary to make some of insurance products should be mandatory for the welfare of the people besides motor insurance. Otherwise, the Insurance Sector will fail to achieve its aims and goals.
(The write is Chief Executive Officer, BGIC PLC).