Nitol Insurance yesterday introduced a car insurance policy that can be taken up online, a first-of-its-kind in Bangladesh.

A policyholder can avail the insurance policy, called Nirapod, through downloading an app or from the insurer’s website. Also, the policyholders can submit their claims online.

A person can now get an insurance coverage worth Tk 5 lakh, up from Tk 20,000 earlier. The policy will cover vehicle damage, liability for third party injury and death, property damage, personal accident and vehicle tracker.

The product will also provide coverage against natural disasters and the clients will be able to get premium on monthly instalment.

“It is a milestone for the insurance sector,” said Shafiqur Rahman Patwari, chairman of the Insurance Development and Regulatory Authority (IDRA), at the launch of Nirapod in Dhaka Club.

Patwari emphasised bringing in new products to the market so that the penetration rate of insurance can rise.

Sheikh Kabir Hossain, president of the Bangladesh Insurance Association, said the product is a new ray of hope for the insurance sector.

The insurance sector has been suffering from an image crisis for many years and people do not want to avail insurance policy, said Hossain, who is also the chairman of Sonar Bangla Insurance.

Abdul Matlub Ahmad, chairman of Nitol-Niloy Group, said the customers once complained that they had to suffer while getting their claim from insurance companies.

“But the situation has changed and people are coming to the insurance sector,” he added.

Nitol Insurance, which is a publicly listed company, has around 25,000 clients.

KAM Monirul Hoque, chairman of Nitol Insurance; SM Mahabubul Karim, managing director; and Habibullah Dawn, president of the Bangladesh Reconditioned Vehicles Importers and Dealers Association (Barvida), also spoke at the event.

A preliminary agreement was signed between Nitol Insurance and Barvida after the launch of Nirapod to promote the insurance policy among car buyers.