Description of Motor Insurance Business:
Motor Insurance: Different types or policies may be issued for
different types of motor vehicles, Motor vehicles are usually
classified in the following manner:- Private Cars, Commercial
vehicles, Motor Cycles, Agricultural vehicles, Motor Trade vehicles.
Motor policies issued are usually of the following types irrespective
of the class of vehicles:
a) Comprehensive
policy
b) Act liability only policy.
Definition of private vehicle :
The Vehicles under private registration & used for private
purposes only.
Direct risks covered under private motor comprehensive
insurance policy
Fire, explosion, burglary and theft, riot & civil commotion,
earthquake, flood & cyclone, storm, any type of accidental
loss and Act liability (Life & property)
Extra benefits which may be included on payment of additional
premium
1. Loss of Rugs,
Coats and Luggage against fire and theft within a limit of Tk.
1,500 for any one loss
2. Accident to insured and any named passenger between 16-65 years
of age (other than the insured and the paid driver)
3. Accident to unnamed passenger between 16-65 years of age (other
than the insured and the paid driver)
4. Accident to insured and his/her/wife/husband
5. Legal liability under workmen’s compensation Act. 1923,
Fatal Accident Act. 1855 and at common law to person’s employed
in connection with the operation or maintenance of the vehicle
6. Legal liability of passengers for act of negligence
7. Electrical or electronic fitting fitted to the vehicle
Definition of commercial vehicle:
The vehicle used for hire or reward and which are not provided
for under the scope of private vehicle or motor cycle and registered
as commercial vehicle.
Direct risks covered under commercial motor comprehensive
insurance policy
Fire, explosion, burglary and theft, riot & civil commotion,
earthquake, flood & cyclone, storm, any type of accidental
loss and Act liability (Life & property)
Extra benefits which may be included on payment of additional
premium
1. Electrical
& Electronics appliances.
2. Approved Tachometer
3. Legal liability
to non-fare paying passengers who are employees of the insured
but not workman as per workmen’s compensation Act.
4. Legal liability
to non-fare paying passenger who are not employees of the insured.
5. Legal liability
to person employed in connection with the operation and maintenance
and/or for loading and unloading of the goods carrying vehicle
excluding drivers.
6. Legal liability
to paid driver and /or conductor in connection with the operation
of Buses only.
7. Legal liability
under workmen’s compensation Act. in respect of carrying
of more then 7 (Seven) persons of such employees including driver
in a goods carrying vehicle.
8. Indemnity
to Hirers.
In addition in respect of a commercial vehicle which is used
for carriage of passenger for hire or reward and in respect of
which legal liability to passenger is required to be covered in
terms of the motor vehicles Act 1991 is subject to additional
premium (Passenger risk coverage is compulsory) of liability to
passenger in accordance with the premium of the motor tariff.
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