You will get on the plane, you will be covered by insurance as soon as you buy a ticket. In this case, as insurance is mandatory, every owner has to consider the safety of the passenger. If the owner cannot ensure security, the insurance company will not enter into an insurance contract so that he cannot do business. This is why insurance being compulsory is a big factor in ensuring the safety of passengers on every aircraft. Similarly, in our country, it is very important to have insurance for bus, launch and train passengers and these should be mandatory.
Why insurance will be mandatory
There are legal hurdles to insuring if you want to get a motor license. There is insurance coverage for 5 people including car and driver in case of car and driver and helper in case of bus, but there is no compulsory insurance for passengers in case of bus and there is no insurance coverage. Without delay, we need to make insurance compulsory for bus, launch and train passengers in our existing law.
In India, train passengers who buy tickets online are covered by insurance. We have not yet received any response from the Insurance Development and Regulatory Authority seeking the opinion of the Ministry of Railways through the Department of Financial Institutions for the introduction of train passenger insurance policy. We do not know when we will be aware.
There have been two major fire accidents recently. There has been a huge loss of life and property. If fire insurance was provided here, the insurance company could compensate the affected family. Those whose business was damaged did not have to cry, because if insured, the insurance company or the reinsurer of the insurance company (domestic or foreign) could pay appropriate compensation. I was surprised to think that many of us do not know whether there is fire insurance in Bangladesh but 47 companies in Bangladesh are providing this facility. In our country general insurance has the highest premium income and insurance claims are paid. Another thing is that the premium rate on such insurance is not very high and they have to be re-activated with one year insurance premium every year.
Compulsory insurance under Motor Vehicles Act
The point I wanted to make is that if insurance is made compulsory, the owner of a vehicle will not be able to insure unless the safety of the passenger is guaranteed and the driver will not be able to drive a car without proper fitness. Passengers will not get in the car without insurance. Similarly, if the building quota and business insurance are made compulsory, the insurance company will not enter into an insurance contract without all the compliance. As a result, in order to take advantage of insurance, all the compliance of the organization and the guarantee of life and property have to be provided. The government does not have to be held accountable for not being able to conduct extensive inspections to address irregularities due to lack of manpower. Because if insurance is made compulsory, many irregularities will be eliminated automatically. There will be no need to form large inspection teams to look into the irregularities. The insurance company will do this work in its interest.
Initially, a positive result would be achieved if the city corporations could ensure insurance for all the establishments under its purview and insure each business before issuing and renewing the license. In addition, if the city corporations can make arrangements to act as agents of the insurance company, the corporation will get the commission money and the insurance work can be done easily.
We may see a change in the near future if there is no legal obligation for city corporations to refrain from licensing and renewing an organization if it is not insured in the public interest now. We can expect this.
Khalil Ahmed, Executive Director (Joint Secretary)