Victims of road accidents often fail to receive compensation from insurers due to complicated claims proceedings and the liability insurance law that limits compensation payouts.
Each year, there are 15,000-20,000 casualties caused by road accidents, reports Dhaka Tribune referring to Bangladesh Passengers’ Welfare Association statistics. Among the casualties, one third lose their lives while two thirds suffer injuries.
Under the liability insurance law, victims usually get no relief. The law stipulates that the injured and beneficiaries of those who died are to receive compensation from insurers. However, insurance companies are liable to pay the families of each fatality BTD20,000 (US$240) and the injured, a minimum of BDT5,000 each.
Green Insurance Company Bangladesh CEO Mr Saifuddin Ahmed Chowdhury told the Dhaka Tribune: “The family members of the victims have to file a complaint at the police station to get compensation. Without a police report, we can’t provide compensation. If someone shows up with a report, we provide the compensation.”
He also said that few insurance claims are made in road accident cases because the amount of compensation is too small for prospective claimants to go through the red tape, which could include requiring them to provide the driver's licence and vehicle papers. It could also cost more than BDT30,000 for a claimant to enlist services to help lodge his or her claim. “Nobody wants to go through this hassle for this little amount money,” he said.
He also said: “The compensation of BDT20,000 is outdated, and to raise the amount of insurance claims, the law has to be amended.”