Online Motorcycle Insurance – How and Why to Do It
Online Motorcycle Insurance in Bangladesh
Bike insurance is a product that allows a rider to transfer legal liability by paying a certain amount of money called a “premium.” Motor insurance is mandatory in Bangladesh. Every motorcycle rider must have insurance from an authorized company.
Motorcycle insurance is a policy that provides coverage against accidents, theft, and natural disasters that may cause damage to your bike. Bike insurance is a unique solution to recover financially from damages caused by accidents. However, due to a lack of proper knowledge of the rules, many customers face harassment from insurance companies.
How to Buy Bike Insurance Online in Bangladesh
In Bangladesh, several companies have made it easy to buy bike insurance online. Riders can now purchase insurance policies in just 3–5 minutes using a mobile device or computer online.
The “Act liability insurance policy” is usually bought by riders because it is mandatory and affordable. This policy costs only around 250–300 BDT. The actual cost depends on engine capacity and bike specifications.
Here are 5 steps to buy bike insurance online in Bangladesh:
- Fill out the form with basic details
- Pay online
- Submit your details to the server
- Download the PDF policy document from your email (usually within 2 hours)
- Receive a hard copy of the policy at your address
Cost of Buying and Renewing Motorcycle Insurance Policies
Maintaining insurance is a continuous responsibility for riders. Therefore, it is wise to have proper backup coverage and renew the policy every year. It is recommended to buy from reputed insurers who have high claim settlement capacity.
By buying insurance, you transfer your legal liability to the insurer. In return for paying premiums, the insurer bears your liability up to a financial limit.
The money you pay to the insurer is called a “premium.” This is regulated by the IDRA (Insurance Development and Regulatory Authority) through the Central Rating Committee (CRC) in Bangladesh, which sets tariff guidelines. Insurance companies must follow these tariffs when pricing their products.
To get online motorcycle insurance, you may need to provide:
- Bike engine CC
- Market price of the motorcycle (as per showroom documents)
- Previous insurance details
- Road tax expiry date
- Fitness certificate expiry date
- Type of coverage requested
- Whether the bike has a tracking device
Most insurance companies provide an online calculator on their websites, allowing you to estimate your cost easily.
Types of Motorcycle Insurance Plans in Bangladesh
In Bangladesh, there are mainly two types of insurance plans:
Third-party motorcycle insurance: This protects against legal liability to third parties (property or people) in case of an accident. It also covers death or injury of third parties.
Comprehensive motorcycle insurance: This covers third-party liabilities as well as damages from accidents, theft, and natural disasters.
Price Chart for Motorcycle Insurance
Comprehensive Insurance or First-Party Insurance provides coverage for accidental damages, theft, natural disasters, robbery, and transit-related damages.
Required Documents for Buying Insurance
- National ID card of the rider
- Blue book of the motorcycle
- Driving license of the rider
- Purchase invoice of the motorcycle
- Passport-size photographs (2 copies)
Additionally, the insurance agent may ask for:
- Driving license details
- Rider’s experience
- Previous insurance policy details
- Any past claim records
- Purpose of use (personal/professional)
Benefits of Motorcycle Insurance
- Financial protection against theft, accidents, and disasters
- Coverage for personal injuries
- Access to roadside assistance or garage services
- Liability vs. Comprehensive coverage options
(Comprehensive insurance covers damages to your motorcycle as well as third-party damages.)
How to Claim Motorcycle Insurance Online
- Cashless claim – repair costs are paid directly to a registered garage
- Direct claim – you file directly with the insurance company
General Package Policy Covers
- Fire, explosion, lightning
- Theft
- Riots and strikes
- Earthquake damages
- Floods, storms, cyclones, hailstorms
- Accidental external damages
- Transit damages (road, air, water, rail)
- Landslides/rockfalls
What Insurance Policies Do Not Cover
- Driving without a valid license or under the influence of alcohol
- War or civil war damages
- Contractual liabilities
- Misuse (e.g., using a private bike as a taxi)
Insurance Terms & Conditions
- Accidents must be reported in writing immediately
- No settlement/payment without insurer’s written approval
- Vehicle must be kept in roadworthy condition
- Insurer may cancel the policy with 7 days’ notice
Frequently Asked Questions
- Do I need insurance for my bike?
Yes, bike insurance is mandatory in Bangladesh under the Motor Vehicles Act.
- How do I keep my bike insurance up to date?
You can renew online through the insurer’s website or offline at a branch.
- How can I get motorcycle insurance online in Bangladesh?
Select your preferred insurer, enter your details, make the payment, and receive the policy online or by mail.
- What is First-Party Insurance?
First-party insurance covers the rider, the motorcycle, and also includes all third-party coverage.
- Why should I get Third-Party Insurance in Bangladesh?
Third-party insurance covers death, injury, or property damage caused to others. Not having it can result in a 2,000 BDT fine.
