Kathmandu. Bangladesh’s insurance regulator has clarified that damages due to popular uprisings or popular uprisings are not covered under the terms of the insurance policy. It also said it had no opportunity to receive any insurance claims for such damages. “Therefore, General Insurance Corporation (SBC), the country’s only reinsurance company, has decided to pay the claims as per the terms and conditions of the insurance policy,” the company said. <\/p>\n
However, the Insurance Development and Regulatory Authority (IDRA) has withdrawn the policy decision and ordered not to consider a “people’s revolt” in insurance claim payments. The insurance sector regulator has issued a directive to the state-owned SBC. On March 3 last year, at a meeting of the SBC with CEOs of private insurance companies and representatives of various survey agencies, it was agreed that the damage caused by the “people’s uprising” would not be covered under the insurance coverage. <\/p>\n
According to the terms of the insurance policy, “property damaged by the people’s uprising” is not covered by insurance coverage. People’s uprisings took place in Bangladesh in July\u2013August 2024 and the national charter was signed in July 2025. As a result, the order not to treat the damage of the people’s insurrection as the loss of the “people’s insurrection” is a form of rejection of the people’s insurrection. They say that such a directive written by the government’s regulatory body will create a legal basis for rejecting the popular uprising. <\/p>\n
On the other hand, they believe that the IDR will use this directive to create an opportunity to illegally collect insurance claims by making false declarations against property damaged in the popular uprising. In addition, SBC is a statutory body established by the Insurance Corporation Act, 2019. In such a situation, there is also the question of whether the IDRA has the jurisdiction to order the withdrawal of the decision of the statutory body. <\/p>\n
According to sources, according to the terms of the international insurance policy and fire insurance policy, the damage caused by the insurrection is not covered under the insurance coverage. On March 3 last year, at a meeting of the SBC with CEOs of private insurance companies and representatives of various survey agencies, it was agreed that losses from Popular Rising would not be covered under insurance coverage. However, the meeting did not take any decision on the process to settle the insurance claims. <\/p>\n
The meeting had suggested that the insurance claim should be paid as per the terms and conditions of the policy. Apart from this, there is no opportunity to pay the insurance claim. <\/p>\n
In the review of the meeting, it was decided to include events from 16 July to 8 August 2024 or later, instead of limiting the July uprising from 4 August 2024 to 8 August 2024. The SBC’s policy decision was sent to all insurers on March 23. <\/p>\n
According to international law and the terms of insurance policies, insurance coverage does not cover damage to insured property if the proximate cause is a “popular uprising”. Similarly, as per the terms of Standard Fire Policy No. 6(d), an industrial all risk (IAR) insurance policy is not covered by the insurance policy. <\/p>\n
In addition, the popular uprising insurance coverage does not cover the terms of the special condition of approval, 6(b). Although the insurance policy takes the risk of riots and strikes, it does not cover people’s uprisings. <\/p>\n
Meanwhile, the IDRA has ordered the SBC to withdraw its policy decision. The IDRA had sent a letter to the SBC on January 4. According to the letter, a meeting was held with stakeholders at the IDR office on December 17 regarding the decision to reject insurance or reinsurance claims citing “popular growth”. <\/p>\n
“The General Insurance Corporation (GIC) will withdraw the decision of its meeting held on March 3, 2025,” the IDR said in its letter. In addition, all non-life insurance companies will consider all insurance claims as ‘popular growth’ and appoint a surveyor against each insurance claim in accordance with the insurance laws and rules and take further action on the basis of the survey report. <\/p>\n
The IDRA letter requests for effective action in accordance with this decision. “There is no denying that there has been a people’s uprising in Bangladesh. Moreover, there is no denying that there was damage to property in the popular uprising. July 16 to August 8 is the most talked about time in the media. \u2019<\/p>\n
However, this time was not taken into account under the direction of the IDR. Instead, it has decided not to consider all insurance claims popular. <\/p>\n
In other words, the loss of property during the insurrection should not be considered as the loss of the people’s uprising. This will create complexity in the payment of insurance claims against any property damaged by the popular uprising. It is to be noted that Section 127 (1) of the Insurance Act of Bangladesh, 2010 provides that no person other than an insurance surveyor licensed under this section shall survey, assess or adjust any loss in respect of a non-life insurance business in Bangladesh and any claim made by an insurer within Bangladesh relating to a non-life insurance business shall be assessed by any insurance surveyor licensed under this Section. Whatever is determined or adjusted otherwise it cannot be paid. \u2013Insurance News BB<\/span><\/p>\n","protected":false},"excerpt":{"rendered":" Kathmandu. Bangladesh’s insurance regulator has clarified that damages due to popular uprisings or popular uprisings are not covered under the terms of the insurance policy. It also said it had no opportunity to receive any insurance claims for such damages. “Therefore, General Insurance Corporation (SBC), the country’s only reinsurance company, has decided to pay the […]<\/p>\n","protected":false},"author":16,"featured_media":284779,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[45031,45044,45159],"tags":[],"class_list":["post-284783","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-banner-news-en","category-international-news-en","category-news-en"],"acf":[],"_links":{"self":[{"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/posts\/284783","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/users\/16"}],"replies":[{"embeddable":true,"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/comments?post=284783"}],"version-history":[{"count":1,"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/posts\/284783\/revisions"}],"predecessor-version":[{"id":284784,"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/posts\/284783\/revisions\/284784"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/media\/284779"}],"wp:attachment":[{"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/media?parent=284783"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/categories?post=284783"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/tags?post=284783"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}