Insurance for bike, other vehicles set to be mandatory again

The government is going to make obtaining motor insurance mandatory for motorbikes and other vehicles plying on the roads.

The insurance was made optional in the Road Transport Act-2018, but the authorities are now returning to the previous position and amending the act accordingly.

The cabinet approved the draft amendment in principle in a meeting on Wednesday, with Prime Minister Sheikh Hasina in chair.

Cabinet Secretary Mahbub Hossain later informed the media that the draft law includes a provision to fine vehicles operating without insurance up to Tk 3,000.

The Bangladesh Insurance Association (BIA) has welcomed the initiative and said it will be beneficial for both insurers and vehicle owners.

BIA Vice President Nasir Uddin Ahmed told Prothom Alo, "We have long been demanding amendments to the road transport law. We are pleased to hear that the cabinet approved the draft law in principle today. It will benefit both the insurance sector and vehicle owners."

It was revealed that the financial institution division of the finance ministry submitted a summary of the law to the prime minister's office in March 2023, arguing that no country permits vehicles to operate on roads without insurance.

Prime Minister Sheikh Hasina, speaking at the inaugural event of National Insurance Day on 1 March 2023, emphasised that no vehicles should be allowed on the roads without proper insurance.

"We should pay attention so that no vehicles operate on the roads without proper insurance," she said.

Sources in the financial institutions division said the initiative to amend the road transport law was undertaken based on the prime minister's instructions.