Car insurance

Photo: Probir Bidhan

I wonder whether anyone at the helm of affairs ever thought of the justification of having such a big gap between 'comprehensive' and '3rd party' insurance premium rate. While a 3rd party policy costs 500/600 taka, the 'comprehensive' policy costs more than taka 25000/-. Obviously 70 to 80 percent of the vehicle owners opt for the '3rd party' insurance just to maintain the formality of having car insurance. If the 'comprehensive' insurance rate was between Tk 5000/- and Tk 6000/-, perhaps 70 to 80 percent owners would have opted for the 'comprehensive' policy to enjoy the full insurance coverage. The insurance companies, in return, would have earned hundred times more revenues.