You know, driving without car insurance is a punishable offense under traffic laws! So it is mandatory to insure every car after buying a car. Compensation is available if the car is insured, the car or the owner of the car, or even a third person is damaged by the car.
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.
What is car insurance?
Motor insurance is the financial assistance reimbursed to the car owner / third party in the event of any damage to the vehicle for any reason or to any third party by the vehicle. Third party motor insurance is a statutory requirement for all car owners. This is because the owner of the vehicle is 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 legally punishable offense.
Types of car insurance policies
Generally, two types of motor insurance policies are covered in Bangladesh
First party or comprehensive insurance policy
Third party insurance policy.
Car Insurance Details Information
The insurance company pays compensation to the car owner in a first party or comprehensive insurance policy. 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, even if the vehicle is damaged due to any natural disaster, if the vehicle is covered by the first party, 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 owner of the car is not compensated 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.
What does a car insurance policy cover?
Insurance companies cover car compensation in the event of the following accidents.
Fires, thunderstorms, explosions
Theft / robbery
No riot facade
Storms, tidal waves, floods, hail floods
Accidents while traveling by rail, road, inland waterway, elevator or elevator
Car Insurance Details Information
Now let’s take a look at what motor insurance does not cover
No harm from the effects of drugs
Accidents outside of geographical boundaries
Not having a valid driving license
No electrical or mechanical breakdown.
Things to keep in mind before buying a motor insurance policy
Fine for injury or death
Before buying a motor insurance policy, make sure that the insurance company will pay for the liability if someone is killed or injured by your car.
If someone in your car or someone outside is involved in a road accident, check to see if the insurance company is paying any compensation.
If your car has caused any damage to another person’s life and property in the accident, find out if the insurance company has compensated him before insuring.
In case of any damage to the vehicle due to various reasons other than road accident such as car theft, vandalism, fire, storm surge or natural calamity, make sure that the insurance company is giving the 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.