Cabinet Secretary Mehboob Hussain later told the media that the draft law included a provision to impose a fine of up to Tk 3,000 on vehicles driven without insurance.
Bangladesh Insurance Association (BIA) has welcomed the initiative and said it will be beneficial for both insurers and vehicle owners.
BIA vice-chairman Nasir Uddin Ahmed told Prothom Alo, “We have been demanding amendments to the road transport law for a long time. We are happy to hear that the Cabinet today approved the draft law in principle. This will give a boost to the insurance sector. And both vehicle owners will benefit.” ,