Motorcycle Insurance in Bangladesh Explained: Cover Types, Claims and Tips

Many riders buy the cheapest policy they can find, file the certificate away and never read it — until the day they need it. Understanding what your motorcycle insurance actually covers takes ten minutes and can save you a great deal of money and stress.

The legal requirements for motor insurance in Bangladesh have changed under recent road transport legislation. Check with your insurer or BRTA what cover is currently compulsory for your motorcycle — this article explains the types of cover available, not the legal minimum.

The two main types of cover

Third-party (liability) insurance

Covers your legal liability for injury to other people or damage to their property caused by your motorcycle. It does not pay to repair your own bike, and it does not cover theft.

• Good for: older, low-value bikes where repairing or replacing the motorcycle yourself is affordable.
• Limit: check the maximum amounts the policy pays for injury and property damage.

Comprehensive insurance

Includes third-party cover plus cover for damage to your own motorcycle from accidents, and usually theft and fire. Some policies add personal accident cover for the rider and pillion.

• Good for: new bikes, expensive bikes, bikes bought on a loan (lenders usually require it), and bikes parked outdoors.
• Trade-off: a higher premium.

What usually isn't covered

Every policy has exclusions. Common ones include:

• Riding without a valid driving licence for the class.
• Riding under the influence of alcohol or drugs.
• Normal wear and tear, mechanical or electrical breakdown.
• Using the bike for purposes not declared on the policy — for example, commercial delivery or ride-sharing on a private-use policy.
• Damage from racing or speed trials.
• Consequential losses, such as income lost while the bike is being repaired.

If you use your bike for ride-sharing or deliveries, tell the insurer. An undeclared commercial use can be grounds to refuse a claim.

How the premium is set

• Insured value — for comprehensive cover, the value you declare for the motorcycle. Declaring less than it's worth lowers the premium but means a lower payout.
• Engine size and model.
• Age of the motorcycle.
• Add-ons such as personal accident cover or pillion cover.
• Claims history and any no-claim discount the insurer offers.

Choosing an insurer

• Buy from a licensed insurance company or its authorised agent, and get an official policy document and receipt.
• Ask how claims are handled: where the surveyor comes from, how long approval takes, and which workshops are accepted.
• Read the policy wording, particularly exclusions and the excess (the amount you pay yourself on each claim).
• Be wary of certificates sold at unusually low prices by unofficial sellers — fake certificates exist, and they cover nothing.

How to make a claim

1. Make the scene safe and get medical help for anyone injured.
2. Inform the police where required — always for theft and for accidents involving injury or a dispute.
3. Inform your insurer as soon as possible, within the time limit in your policy.
4. Take photos of the scene, the damage, other vehicles and their number plates, and collect witness details.
5. Don't repair the bike before the surveyor inspects it, unless the insurer agrees in writing.
6. Submit the claim form with copies of your licence, registration certificate, policy and the police report where relevant.
7. Keep copies of everything and note the names of the people you speak to.

Insurance when buying or selling

• Buying used: ask what cover the bike has and whether it can be transferred. Often it's simpler to take out your own policy from the day of purchase.
• Selling: once the sale is complete, tell your insurer. Don't cancel your policy until the bike is handed over.

Quick tips

• Put the renewal date in your phone calendar.
• Keep a copy of the policy on your phone.
• Use a good lock and park in secure places — some insurers ask about it, and it reduces your risk anyway.
• Review your cover every year as the bike's value changes.