Motor Insurance
- Motor Insurance:
Motor insurance is insurance for Cars, Buses, Trucks, Motorcycles, and other vehicles. It provides financial protection against physical damage of the vehicle as well as Third Party Property Damages, Injuries/Death that could also arise from accident by the insured vehicle. Motor insurance also covers financial protection against theft of the vehicle, and natural disasters.
- Types Of Motor Insurance
Car Insurance
Two wheeler Insurance
Commercial Vehicle Insurance
- Insurance Policy:
Insurance Policy is an evidence of insurance contract. This insurance contract is made between the Insured/Policy-holder and Insurance Company. Subject to the terms & conditions of the policy, the insurance company indemnifies the Insured/Policyholder so that property damaged by insured event can be restored to its former position. Insurance Company provides this insurance coverage in exchange of money which is called ‘premium’ for certain period; usually one (01) year. coverage.
- Why need Motor Insurance ?
- To avoid financial loss due to accident
- To get peace of mind against Risk
- Covers Third Party Property Damages, Injuries/Death
- Legal Liability
- To avoid burden of loss
- To get financial security
- Coverage of Comprehensive Motor Insurance
The Coverage for the Comprehensive Motor Insurance are-
- Own Damage
- By Fire Explosion, Self ignition or lighting.
- By Burglary housebreaking or Theft.
- BY Riot and Strike.
- By Earthquake (Fire and Shock Damage.)
- By Flood, Typhoon, Hurricane Storm, Tempest, Inundation, Cyclone, Hailstorm, Frost.
- By Accidental External means.
- Whilst in transit by road rail Inland waterway, lift, elevator or air.
- Act Liability.
- Coverage of Act Liability Insurance
- Subject to the Limit of liability, the Insurer will indemnify in the following cases. In respect of the death of or bodily injury to any person or damage to any property of third party caused by or arising out of the use of the Motor Vehicle in a public place.
- Compensation Limits under the policy are as follows:
- Death of or bodily injury to any person and/or Passenger or and Property
Death…………………………………….Tk.20,000.00
Sever Hurt……………………..………Tk.10,000.00
Any other Hurt…………….…………Tk. 5,000.00
- Property Damage…………………..Tk.50,000.00
- Cost of Insurance:
Cost of Insurance means the amount of money that the clients pay to buy their desired insurance. This cost of insuranceincludes Premium, VAT and Stamp Duty in common.
- Sample of premium calculation:
- Premium Rate:
Motor Premium rate is taken from the Motor Tariff. Premium rate depends on Risk Coverage and Nature of risk as well.
Premium: Sum Insured (Insured Value) x
Premium Rate (Depends on mainly risk coverage)
xxxxx
(+) VAT (Premium x 15%)
xxxxx
Total Payable Amount
xxxxx
