Act Only Liability Insurance

Cover Act. Liabilities viz, death/bodily injury and damage to properties as per Motor Vehicle Amendment Act, 1991.

Comprehensive Insurance

Covers loss or damage to the motor vehicle and or its accessories whilst thereon by fire, explosion, self ignition, lighting, burglary, housebreaking, theft, riot & strike, malicious damage, terrorism, earthquake, flood, typhoon, hurricane, ...

Increased Liability Insurance

Cover liability in excess of no fault liability limits viz. BDT. 20,000 (max) for death or bodily injury and BDT. 50,000 (max) for property damage under Standard Comprehensive and Act Only Liability insurances.

Two types of covers are granted:

a) Act Liability policy/public Liability :-This policy provides indemnity to the insured against legal liability for claims by the third party in respect of accidental personal injury &/or damage to any property of third party property covered by the insured vehicles in public place as is necessary to meet the requirements of section 95 of the Motor Vehicles Act 1939. Increased limit of liability is also provided in respect of public liability policy.

b) Comprehensive Insurance Policy:- This policy provides cover against loss or damage to the insured vehicle by accidental external means or malicious act, Fire, External Explosion, Lightning Self ignition, Burglary, Housebreaking and Theft. Also whilst in transit by Road, Rail inland waterway, lift, elevator or air. Subject to the limitations mentioned in the policy and liability to public risks including Act liability.

Rates & terms of motor policy are governed by motor tariff and it is binding on the insurers to follow such rates & terms. For rating purpose, the vehicles have been classified into three classes according to their use viz. Private Car. Motor Cycle and Commercial Vehicles. Premium is calculated on cubic capacity and seating capacity in respect of Private Car, Motor Cycle, while premium in respect of commercial vehicles is calculated on tonnage capacity of the vehicles.