Delivery rider insurance in Bangladesh: Coverage exists, but is it enough?

Staff Correspondent: The rapid expansion of Bangladesh’s e-commerce and ride-sharing sectors has led to a significant rise in the number of delivery riders on the roads. While several platforms now offer insurance coverage to protect these workers, questions remain about how effective these protections are in practice.

Platform-based insurance coverage

Major delivery and ride-sharing platforms in Bangladesh have introduced insurance schemes aimed at supporting riders in case of accidents.

Foodpanda, for instance, provides accident coverage of up to Tk 2 lakh for riders injured during deliveries. This applies to all types of riders, including those using motorcycles, bicycles, or operating on foot. Additionally, high-performing riders can access the Panda Riders Personal Accidental Insurance, offered in partnership with Green Delta Insurance. This policy provides Tk 1 lakh in case of accidental death or permanent disability and up to Tk 50,000 for partial disability.

Pathao also offers a Safety Coverage programme for its bike and parcel riders. Under this scheme, riders can receive up to Tk 1 lakh for medical expenses incurred during trips, along with up to Tk 5,000 for outpatient care. The company also provides additional insurance benefits through Green Delta Insurance, subject to specific conditions.

Uber, meanwhile, offers free insurance coverage for both its moto and four-wheeler drivers. According to the company, the policy includes up to Tk 2 lakh for accidental death or permanent disability and up to Tk 1 lakh for hospital treatment costs.

Coverage limits raise concerns

Despite these initiatives, industry experts say the coverage amounts may not be sufficient given the rising cost of healthcare in urban Bangladesh.

Currently, most policies offer between Tk 1 lakh and Tk 2 lakh for accidental death, while hospitalisation costs are typically covered between Tk 25,000 and Tk 1 lakh. Experts note that these amounts often fall short in cases of severe accidents, where long-term treatment and income loss can create significant financial burdens for riders and their families.

Trip-based coverage leaves critical gaps

A major limitation of existing insurance schemes is that coverage is usually valid only during active trips. This leaves riders unprotected during off-duty hours, even though they often spend extended periods on the road.

Sector analysts argue that this “trip-based” model does not fully reflect the real risks riders face, as their exposure to road hazards extends well beyond individual delivery or ride sessions.

Lack of awareness and claim challenges

Another key issue is the lack of awareness among riders about insurance benefits, policy terms and claim procedures. As a result, many riders fail to access the compensation they are entitled to after an accident.

Insurance professionals emphasise that coverage alone is not enough. For insurance to be effective, the claims process must be simple, fast and transparent.

Personal insurance as an alternative

For riders who are not affiliated with a platform or who seek additional protection, personal accident insurance is emerging as a viable alternative. Digital platforms such as Bimafy are offering low-premium policies that cover basic medical expenses and accident-related risks.

However, experts caution that these policies vary widely in terms of coverage and conditions. Riders are therefore advised to carefully review policy details before making a purchase.

The way forward

Analysts suggest that meaningful reforms are needed to ensure effective social protection for delivery riders.

Key recommendations include increasing coverage limits to better reflect actual medical costs and income loss, extending protection beyond trip periods to include off-duty incidents and simplifying the claims process. Improving transparency and raising awareness among riders about their insurance rights and benefits are also critical.

As Bangladesh’s gig economy continues to grow, ensuring adequate and practical insurance coverage for delivery riders will be essential to safeguarding one of the sector’s most vulnerable workforces.