Although launch capsize has become a regular, albeit unwanted, occurrence in the country, such incidents do not ensure any compensation for the victims’ families – regardless of whether a launch capsizes because of the owner’s negligence, a faulty vessel or a natural disaster.
The launch owners, however, are not so unlucky. When the vessels capsize, it means extra money in their pockets.
If the owner is a member of the launch owners’ association, their primary source of compensation would be the River Welfare Fund, a fund formed by the Shipping Department in 2006. If the vessel is insured, additional money might also come from the insurance company concerned.
Even though the welfare fund also has a provision to compensate the victims’ families, the amount of compensation is nominal and the process allegedly favours the owners more than
the victims.
Several launch owners, seeking anonymity, told the Dhaka Tribune that they focused more on making monthly payments to the River Welfare Fund instead of insuring their vessels, as it was harder to collect money from the insurance companies once an accident took place.
However, some owners have no choice but to get an insurance policy when they buy a launch with bank loans, which only come with an insurance coverage.
When a launch bought with a bank loan sinks, the owner gets the insurance money if the loan is repaid, or else the bank collects the compensation from the insurance company. The passengers do not see a dime.
There is also no government rule or law that makes it mandatory for owners to take out insurance policies covering passengers as well as the vessels.
There are allegations that the authorities concerned have repeatedly failed to take any strict action in the river transport sector as influential political leaders are involved in the business.
During the tenure of the BNP-led government, the party chief’s sons Tarique Rahman and Arafat Rahman were active in the launch business; while during the Awami League-led government, Shipping Minister Shajahan Khan also became involved in the trade. Other influential leaders from different political parties also allegedly have stakes in the business.
Efforts to ensure insurance for launches was first initiated when HM Ershad was in power, but the initiative could not move forward allegedly because of strong opposition from influential launch owners.
A draft was also prepared to formulate a law to make insurance compulsory for launches, ships and cargo vessels; but the process to have it enacted is going on at a sluggish pace. In 2001, an initiative was made for ensuring launch passengers’ insurance, but the proposal became stalled after it had been sent back from the ministry concerned.
Shahabuddin Milon, former vice-president of Bangladesh Inland Waterways Association, said the launch owners did not go for insurance as there was no law about it. If there was a law, the owners would abide by it.
Sheikh Kabir Hossain, chairman of Bangladesh Insurance Association, said if a policy was formed for launch passengers’ insurance, the number of accidents would reduce as the insurance companies would verify the launch capacity and faults of the vessels before issuing any insurance.
There are provisions for passenger insurance for journeys on road, rail and airways; but not for the country’s waterways. The rail and airways are now collecting insurance fees with tickets.
Speaking on this, State Minister for Finance MA Mannan said steps had been taken to form a policy for insuring river vessels and a draft in this regard had been made.
On the other hand, Juber Ahmed Khan, a member of the Insurance Development and Regularity Authority (IDRA), said the Shipping Ministry needed to take the responsibility about insuring launch passengers. The ministry could make it possible by demanding a mandatory insurance policy whenever an owner asked for a launch fitness certificate from the ministry, he added.
If any accident took place even after following all the regulations, the IDRA must provide help to ensure compensation, Juber said.
Although the Shipping Department’s River Welfare Fund is the only hope for victims to get compensations, the amount of money is minimal. From the fund, the authority has to pay a maximum of Tk1.05 lakh to the family of a deceased and Tk50,000 for the family of an injured person.
But even in this case, the launch owners are still the true beneficiaries of the fund as they get compensation in massive amounts, which is decided by a meeting of the fund committee that consists mostly of officials from the BIWTA, Shipping Department, representatives of launch owners association; but no representatives from the victims’ families.
Every certified launch owner has to pay Tk50 annually to the welfare fund against every passenger a launch is capable of carrying. Despite regularly picking up passengers well over the carrying capacity, most launch owners skip depositing the extra profit in the fund.
Siddiqur Rahman Patowari, secretary of Bangladesh Inland Water Transport Corporation, said compensation has to be paid from the welfare fund as there is no provision of insurance for launch passengers. Launch owners would be forced to apply for insurance policies for their passengers if an act was formed in this regard, he added.
According to BIWTA sources, around 580 launches were currently operating on different river routes in the country.
Minister Shajahan Khan could not be reached over phone for comments despite repeated try.
