You know, driving without car insurance is a punishable offense under traffic laws! So it is mandatory for everyone to insure every car after buying a car. If the car is insured, the car or the owner of the car, even a third person, will be compensated if the car is damaged.
Therefore, after buying a car, every car owner has to insure the car. Let's take a look at some notable aspects of car insurance or motor insurance.
1. What is car insurance?
Motor insurance is the financial assistance provided by the insurance company law to the car owner / third party in case of any damage to the vehicle for any reason or any third party damage caused by the vehicle. Third party motor insurance is a statutory requirement for all car owners. This is because the owner of the vehicle will be held responsible if any third party person is harmed as a result of using the vehicle in a public place. So driving in public without motor insurance is a criminal offense.
2. Types of car insurance policy
Generally two types of motor insurance policies are covered in Bangladesh.
First party or comprehensive insurance policy and
Third party insurance policy.
> Comprehensive insurance
In a first party or comprehensive insurance policy, the insurance company pays compensation to the car owner. Under this policy, if a car is involved in an accident, the insurance companies will compensate the car owner or the car owner for any damage caused by the accident. In addition, if the vehicle is damaged due to any natural calamity but the vehicle under the first party is damaged, the owner of the vehicle is compensated for the loss of the vehicle. The premium rate of this policy is relatively high.
> Third party insurance policy
If a car is covered only by a third party insurance policy, then the car owner does not have to pay any compensation for the loss of the car if the car is damaged due to any reason or accident. The insurance company will only take responsibility for the damage caused to the third person by the car.
3. What does car insurance policy cover?
Insurance companies cover car compensation in the event of the following accidents.
Fires, thunderstorms, explosions
Theft / robbery
Any kind of riot facade
Earthquake
Storms, tidal waves, floods, hail floods
Terrorist activities
Malicious activity
Accidents while traveling by rail, road, inland waterway, elevator or elevator
Landslides
Read More: Types of Insurance
4. Now let's see what does not fall under the motor insurance cover
Illegal work
No harm from the effects of drugs
Accidents outside of geographical boundaries
Not having a valid driving license
No electrical or mechanical breakdown.
5. Things to keep in mind before buying a motor insurance policy
Penalty for injury or death
Before buying a motor insurance policy, make sure that the insurance company will pay for the liability in case someone dies or is injured by your car.
6. Medical expenses
If someone in your car or an outsider is involved in a road accident, check to see if the insurance company is paying any compensation.
6. Compensation of property
If your car has caused any loss of life or property to another person in the accident, find out if the insurance company has compensated him before insuring.
6. Non-accidental damage
In case of any damage to the vehicle due to various reasons other than road accident such as car theft, car vandalism, fire, storm surge or natural calamity, make sure that the insurance company is giving insurance policy on any condition.
Motor insurance is very important to avoid the loss of car owner, passenger, and car accident after buying the car. So after buying a car, insure yourself and ensure the safety of the car.
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