Application of ‘Contra Proferentem Rule’ on Insurance Laws in Bangladesh: A Critical Study

Abstract

Insurance industry in Bangladesh is currently undergoing significant transformations, influenced by rapid economic growth and changing market dynamics. As the industry continues to evolve, the need for clear and effective legal doctrine becomes paramount. As a developing country the insurance industry is growing every day just like every other industry taking in thousands of policy holders. This thesis explores the potential application of the contra proferentem principle in the emerging landscape of insurance law in Bangladesh. One of the main goals of the research is to explore the application of the principle to safeguard the rights of the individuals. Contra proferentem, a Latin term meaning "against the offeror," is a legal doctrine that favours the interpretation of contractual terms against the party that drafted the contract. Furthermore, the thesis analyses real-life case studies and scenarios from the Bangladeshi insurance industry to illustrate how contra proferentem could be applied to resolve disputes, protect policyholders' interests, and promote fairness in insurance contracts. It also considers the perspectives of insurers, policyholders, and regulatory authorities to gauge the feasibility and desirability of introducing contra proferentem as a guiding principle in the local insurance industry. Ultimately, this research aims to contribute to the ongoing discourse on the development of insurance law in Bangladesh by exploring the applicability of the contra proferentem principle. By examining the potential advantages and drawbacks of incorporating this doctrine into the legal framework, this thesis provides valuable insights into the possibilities of enhancing fairness, transparency, and consumer protection in the evolving insurance sector of Bangladesh.