Insurance may be made mandatory for all vehicles

The government is likely to make insurance mandatory for all types of vehicles, including motorcycles, cars and buses.

To this end, the Insurance Development and Regulatory Authority (Idra) has sent a proposal recently to the finance ministry to take an initiative to amend the Road Transport Act 2018.

Insiders said the Financial Institutions Division has prepared a summary in this regard for the Prime Ministers' Office for consideration.

Vehicle owners will have to pay a fine of up to Tk 3,000 if not insured, according to the IDRA proposal.

Insurance was once mandatory for all types of vehicles, including motorcycles, cars, buses and trucks. However, the law was repealed in 2018.

On March 1, Prime Minister Sheikh Hasina gave directives to ensure that no uninsured vehicles ply the streets.