MOTOR INSURANCE

(1)  Private Car
(2)  Commercial Vehicle
(3)  Motor Cycle.

 

Catagory:

(1) Act Liability Policy Form (Third Party): A common policy form for all types of vehicle, ie.             Comprehensive Policy Form: Separate policy forms to be used for private vehicle,
motor cycle & commercial vehicle.

Policy form shall contain two sections:

(i) SECTION 1, Own damage section. Under Own damage section the loss or damage to the insured                  vehicle to be covered.

(ii) SECTION 2, Act liability section. Under Act liability section the liability of the insured, as per motor       vehicle Amendment Act, 1991 shall be covered.

 

(2) Act Liability Policy Form (Third Party): A common policy form for all types of vehicle i.e. private       vehicle, motor cycle & commercial vehicle to be used. Liability of the insured          made compulsory by       motor vehicle Amendment Act, 1991 as well as additional liabilities may be insured.

Comprehensive Policy (What it Covers):

  1. By fire, explosion, self-ignition or lighting.
  2. By burglary, house-breaking or theft.
  3. By riot & strike including malicious and terrorist activities.
  4. By earthquake (fire and shock damage).
  5. By flood, typhoon, hurricane, storm, inundation, cyclone, hailstorm, frost, tempest.
  6. By accidental external means.
  7. Whilst in transit by road, rail, inland waterway, lift, elevator or air.
  8. Act liability insurance risks.

Act Liability Policy (What it Covers):

Death                           Tk. 20,000
Grevious Injury           Tk. 10,000
Minor Injury                Tk. 5,000
Property Damage       Tk. 50,000

Rating of Motor Insurance:
We have three types of tariffs in our country for rating of motor insurance. These are private car, commercial vehicle and motor cycle tariff. As per tariff, the rating of motor insurance depends on following factor:

 

1)         Private Car:

  1. Horse power or cubic capacity of the vehicle
  2. Insured’s estimated value of the vehicle
  3. Seating capacity of the vehicle

2)         Commercial Vehicle:

  1. Passenger Carrying: Type of vehicle

Insured’s estimated value of the vehicle
Seating capacity of the vehicle

  1. Goods Carrying Vehicle:

Carrying capacity
Insured’s estimated value of the vehicle

3)         Motor Cycle:

  1. Cubic capacity of the vehicle
  2. Insured’s estimated value of the vehicle

No Claim Bonus

A rebate in accordance with the following scale may be allowed by way of deduction from the premium required for the next renewal. No Claim Bonus applicable to own damage premium only.

On Comprehensive Policy Private Vehicle Commercial Vehicle Motor Cycle
1st. Year. No claim made during the preceding year of insurance 30% 30% 15%

2nd Year.  No claim made during the preceding 2 consecutive years of insurance

40% 40% 20%

3rd. Year. No claim made during the preceding 3 consecutive years of insurance

50% 50% 25%
On Act Liability Policy Private Vehicle Commercial Vehicle Motor Cycle
1st. Year. No claims made during the preceding year of insurance. 10% 10% 5%

2nd. Year.   No claims made during the preceding 2 consecutive years of insurance.

20% 20% 10%

3rd. Year.   No claims made during the preceding 3 consecutive years of insurance.

25% 25% 15%

Claim Loading for Private Vehicle & Commercial Vehicle (Own Damage Section Only):

If the insured is not entitle to any NCB & made claim or claims during the preceding year of insurance, the basic premium at next renewal shall be loaded in accordance with the following scale:

Own Damage Section Private Vehicle Commercial Vehicle

One claim in preceding period of Insurance

30% 30%

Two claims in preceding period of Insurance

40% 40%

Three claims in preceding period of Insurance

50% 50%

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