The way the government has enacted the Motor Law in 2016 has been an ax to grind on the motor insurance business. Insurers are now realizing that. There is no end to the discussions on this issue, but there is no initiative to resolve it.
Insurers often said that the business of ‘motor third party liability’ or third party insurance was very good. Because, no claim would have been raised. Insurers believe that insurance business is good without any claims – what a terrible, horrible and misleading! The mainstay of the motor insurance business is the confidence of the people. There is no attempt to gain this confidence among the insurers.
Note that if a person is injured or killed due to a vehicle, or if there is a loss of property or another vehicle, this third party would be insured to compensate him. In other words, this insurance was to compensate for the loss that occurred outside the driver or passenger. But the Road Transport Act 2016 in Bangladesh did not make it compulsory to insure vehicles. In line with that law, the Insurance Development and Regulatory Authority (IDRA) has issued a notification canceling the insurance.
But if a citizen of a state is involved in a road accident or someone dies as a result of an accident, then no state can be exempted from its liability for compensation. Insurers promise to compensate citizens by registering with the government as part of this state obligation.
A review of the general insurance system and insurance business in Bangladesh shows how greedy and reckless we are. There are various opinions among the experts about the motor law of 2016 which is confusing. In fact, the state cannot interfere in the personal income and expenditure and personal financial management of a citizen under any circumstances.
If another citizen is harmed due to the negligence of one citizen only, the state can take legal action. Such is the statutory system, the third party liability policy of the motor. Citizens in almost all countries of the world buy such policies. While the insurers of Bangladesh live in daydreams, such a policy is a good reason, in this case the insurers do not have to claim.
I have six tips to make the motor insurance business profitable and increase people’s confidence. These are-
1. Third party liability insurance must be reintroduced. At the same time to introduce professional accident insurance for motorists and driver assistants (conductors). From these three policies alone, the income can be around two thousand crore rupees premium.
2. The policy premium has to be increased. In this case the rate of premium fixed for the same national policy of India can be considered.
3. The three policies need to be widely publicized across the country to make them popular. At least three years of campaigning and awareness-raising with insurance agents at major bus stands.
4. Until the policies are widely adopted, it is necessary to set up a commission to compensate the victims of all accidents and deaths in the country and to determine the amount of compensation. It is important to determine the amount of this compensation based on the X Gracia policy, as ethical criteria are more important than legal obligations in these cases.
5. The money that will be given from the government fund to the people and families affected by thousands of motor accidents must be given under the banner of Bangladesh Insurance Association (BIA). This will increase people’s confidence in insurance.
In order to restore people’s confidence in motor insurance, it is necessary to set up one motor insurance claims tribunal in each of the divisional cities.
Such tribunals will be able to expedite the settlement of all types of accident insurance claims and civil matters, including motor accidents. However, this motor tribunal must be developed as a separate judicial system like the administrative tribunal and tax office tribunal of the country. In this regard, the government may review the management of accident cases in India and other countries.
I believe that the Ministry of Finance, the Insurance Development and Regulatory Authority (IDRA) and the BIA will add about Rs 3,000 crore to the premium insurance business as planned. However, for that, Motor Comprehensive Policy, Motor Third Party Policy, Motor Drivers Risk Policy, Motor Vehicle Assistant Policy-these have to be popularized, i.e. brought within the purchasing power of common man. However, it is important to start a more comprehensive discussion and research.