Bangladesh's major cities see rapid expansion of mega-infrastructures and high-rise developments but sans insurance coverage against earthquake damage, insurance executives say and experts make wake-up call over the latest tremor destruction.
They point out that key public projects, including the MRT lines and elevated expressways in Dhaka, and flyovers and elevated express way in Chittagong, do not carry dedicated earthquake-insurance coverage.
As a result, a serious concern remains over the country's preparedness for a major quake.
A 5.7-magnitude earthquake that struck Dhaka and adjacent areas on Friday morning caused structural damage to many buildings and resulted in at least six deaths from quake-related incidents.
In recent years, Dhaka and Chittagong and other major cities' skylines have been transformed by flyovers, elevated expressways, metro-rail corridors, multi-storey commercial towers and dense residential complexes.
Yet this physical growth has not been matched by financial safeguards that could mitigate losses in the event of any seismic disaster.
While earthquakes are often viewed as "acts of God", insurance mechanisms exist globally to cover structural damage caused by tremors, reducing the burden on individuals and the state.
In Bangladesh, however, awareness and adoption of such policies remain extremely low.
"Many people do not realise that earthquake insurance is both available and affordable," says Khaled Al Mamun, chief executive of Reliance Insurance PLC.
"The premium is comparatively low, but interest among property owners is minimal. There is a strong belief that disasters are unavoidable and that compensation will not materialise - which is simply not true."
Industry executives say earthquake protection can be included as an add-on under fire- and allied-perils insurance policies, covering structural damage to buildings, bridges, flyovers and other infrastructures caused by seismic activity.
Such policies provide financial relief for repair and reconstruction, helping businesses and households recover more quickly after a disaster.
Bangladesh sits close to several active fault lines, and even a moderate quake could cause massive economic and human losses.
Md Imam Shaheen, managing director and chief executive of Asia Insurance PLC, says quakes are not merely theoretical.
"Earthquake insurance is to be viewed as a luxury rather than a necessity here in Bangladesh.
"But only a limited number of clients opt for earthquake coverage, mostly large industrial conglomerates."
He adds: "Those who take coverage generally include it under industrial all-risk policies, which also cover seismic damage. At the individual level, earthquake insurance uptake is almost zero."
Urban planners warn that weak enforcement of building codes, combined with the rapid construction of high-rises without proper seismic design, has further increased the city's vulnerability.
Many older buildings, particularly in crammed old-Dhaka areas, remain structurally ill-equipped to withstand even moderate tremors.
Despite repeated warnings from seismologists and disaster-risk experts, insurance penetration in Bangladesh remains below 1.0 per cent of GDP, far lower than regional and global averages.
jasimharoon@yahoo.com