When choosing fire insurance, it helps to understand what your policy actually covers, especially when you need to file a claim. One term you might come across is RSMD, which stands for Riot, Strike and Malicious Damage. In simple terms, it can protect your insured property against certain types of damage caused by riots, strikes, or intentional vandalism, depending on your policy.
For businesses in Bangladesh, this coverage can be especially useful. Factories, shops, warehouses, and offices may face property damage during public unrest or workplace disputes. But here’s something to keep in mind: RSMD isn’t automatically included in every standard fire insurance policy. You’ll need to check your policy documents to see whether it’s covered or available as an add-on.
Knowing what’s covered, what’s excluded, and how to get RSMD protection can help you choose the right insurance for your property. In this guide, we’ll explain what RSMD means and why it matters.
RSMD stands for Riot, Strike and Malicious Damage. It is an optional add-on to the best fire insurance coverage for businesses. It covers physical damage to your property caused by rioting crowds, striking workers or people who deliberately set out to damage it, which a basic fire policy would not pay for.
Here is each part in plain words:
| Term | What it means |
| Riot | A violent disturbance by a group of people that damages property |
| Strike | Damage caused by striking workers or people involved in labour unrest |
| Malicious Damage | Deliberate harm to property, such as vandalism or arson, done out of spite or to cause loss |
If your policy schedule does not list these, you probably do not have this protection.
Many people hear “fire insurance” and assume it protects against anything that damages a building. It does not. A basic fire policy is narrow. It covers fire and/or lightning, and not much else.
To protect against other risks, you add extensions, sometimes called allied perils or add-on covers. Riot and strike damage is one. Malicious damage is another. Insurers in Bangladesh also commonly offer flood, cyclone and explosion cover this way. Each extension is added to the policy by endorsement and written on your policy schedule.
Why aren’t they included automatically? Because each risk is priced separately. Fire insurance premiums follow a tariff set by the Central Rating Committee, and each extension carries its own charge. Insurers cannot simply bundle everything in for free.
The trouble is that nobody feels the gap until the day it matters. Think of a basic fire policy as a lock on your front door. It is useful, but it does not protect the windows. If a crowd smashes your shopfront and burns what is inside, whether you get paid depends on whether RSMD was added beforehand, not on how many years you have been a loyal customer.
So the first step is simple: open your policy schedule and look for the words riot, strike or malicious damage.
A riot is a violent disturbance by a group of people. It is not a peaceful rally or a march. It becomes a riot when the crowd turns violent and property gets damaged.
For example, imagine a clothing shop in a crowded market area. A protest turns violent, the crowd breaks the shutters and smashes the display counters. This kind of loss is what riot cover is meant for. Many policies also use the term civil commotion, which means a similar disturbance of public order. Your policy wording will decide exactly how the term is defined, so it is worth reading that part carefully.
Strike cover is about damage caused by striking workers or people involved in labour unrest. The key word is damage. A strike that only stops work is not a damage event.
For example, imagine a factory where workers walk out over unpaid wages. Production stops, and that is a business problem. But if some of the crowd then breaks machines or sets fire to the stock room, that physical damage is what strike cover is designed to pay for. The lost production during the walkout is a different matter, and usually needs separate business interruption cover often bundled under an Industrial All Risk (IAR) policy.
Malicious damage means someone deliberately harms your property. It could be vandalism, a thrown petrol bomb or arson by someone with a grudge. It does not have to involve a crowd. One person acting alone can cause malicious damage.
Because this cover deals with intent, insurers look closely at what happened and why. Was it a deliberate act by someone else? Or did it start by accident, or by the owner’s own hand? Insurers examine the cause of the loss through police reports, surveyor findings and witness accounts. That is why good records matter so much. If you can show clearly what happened, your claim will move more smoothly.
Insurance papers love short forms, and they are not always used the same way. In Bangladesh, you may find riot and strike damage (RSD) and malicious damage listed as two separate items, not one combined cover. Some insurers’ product pages show them as separate add-ons you can tick individually.
Here is a general guide to the terms you may meet:
| Term | What it commonly refers to |
| RSMD | Riot, Strike and Malicious Damage, often used as shorthand for all three together |
| RSD | Riot and Strike Damage, often listed separately from malicious damage |
| Malicious Damage (MD) | Deliberate damage to property by someone else |
| SRCC | Strikes, Riots and Civil Commotion, a similar group of risks used in many markets |
| Terrorism and sabotage | Treated differently, and often excluded or covered only by special arrangement |
The important point is that terrorism and sabotage are usually handled separately from RSMD. Do not assume that riot cover also protects you against them.
And remember: the name on a brochure is not what pays your claim. The wording in your policy schedule is the final word. Two companies can both say “riot and strike cover” and still define it differently.
Every policy is worded differently, so treat this as a general guide, not a promise.
What RSMD usually covers
What it may not cover
These are examples, not a complete list, so always check your own policy.
A quick “read your wording” checklist
If anything is unclear, ask your insurer to explain it in writing and keep the reply.
In July and August 2024, Bangladesh saw widespread unrest, and many properties were damaged. Afterwards, a question came up in the insurance industry: were these losses covered under riot and strike cover, or were they something different, known as a “popular rising”, meaning a mass uprising?
First, one simple idea: proximate cause. It means the nearest, main cause of a loss. Suppose a fire breaks out in your shop after a crowd sets it alight. The insurer asks what the real, closest cause of the damage was. Was it a riot? Or was it a larger event that the policy does not cover? The answer can decide whether you are paid.
According to industry reports, Sadharan Bima Corporation (SBC), the state-owned reinsurer, took the view that if the main cause of the damage was a popular rising, the loss falls outside cover, even when the policy includes riot and strike protection. In January 2026, the insurance regulator, IDRA, asked SBC to withdraw that position. IDRA said “popular rising” should not be used as an automatic reason to refuse claims. Each claim should be looked at on its own, with a licensed surveyor and a decision based on the survey report.
There are two sides to the debate:
What does this mean for you? Three practical lessons:
Not everyone needs the same protection, so think about how exposed your property is.
Garment and industrial units. Factories hold costly machinery and stock, and they have large workforces. Labour disputes and unrest nearby can put them at risk, and the losses can be very large.
Shops in busy markets. If your shop sits in an area where processions, protests or clashes happen from time to time, a single bad day can wipe out your stock.
Warehouses and godowns. They often store high-value goods in one place, and they may be left unattended at night.
Bank-financed property. If a bank has lent you money against your property, ask whether it requires certain covers. Even if it does not, a loss would still leave you owing the loan.
Residential flats and small offices. The risk is usually lower, but if you live or work in an area with frequent unrest, it is worth asking for a quote. The extra cost is often small compared with the possible loss.
The point is not to scare anyone. It is to look honestly at where your property is, what is inside it and how much you could afford to lose.
RSMD is priced as an extension under the fire tariff, so adding it raises your premium. How much depends on your property and the insurer’s terms, so ask for a written quote instead of relying on figures you find online.
Two things matter even more than the price:
Your building class. Buildings are grouped by how they are built. A concrete building usually costs less to insure than one made of tin or bamboo. Some owners are tempted to declare a weaker class to save premium. This can backfire. If the insurer finds the true class is better or worse than stated at claim time, it may cut your payout.
Your sum insured. If you insure your stock or machinery for much less than it is worth, the average clause can apply. This means your claim is reduced in proportion to how under-insured you were. Review your values every year, especially if your stock has grown.
A loss like this is stressful, and following the right process is essential for faster insurance claim approval in Bangladesh. Here is a simple order to follow:
Mistakes to avoid
If you believe your claim has been treated unfairly, you can complain to the Insurance Development and Regulatory Authority (IDRA). Check IDRA’s website for the current complaint process.
Usually not. A basic fire policy covers fire and/or lightning, and RSMD is normally an add-on. Check your policy schedule to see whether riot, strike and malicious damage are listed.
Not exactly. RSD means Riot and Strike Damage, and many insurers in Bangladesh list malicious damage separately. RSMD puts all three together, so check which ones your policy really includes.
Often not. Looting or theft during a riot may fall outside RSMD unless your policy says otherwise. Ask your insurer in writing, and keep a list of your stock to support any claim.
Not on its own. RSMD is meant for physical damage. Lost income while you rebuild usually needs separate business interruption cover, so ask your insurer about it.
Often yes, if your insurer agrees and you pay the extra premium. But insurers may refuse or pause new cover when unrest is already under way, so ask early.
RSMD closes a gap that a basic fire policy leaves open. It covers physical damage from riots, strikes and deliberate acts, but it has limits, and the exact wording matters. Its treatment of mass unrest is still a live question in Bangladesh.
A good next step is to take out your current policy and compare it with the checklist above. If anything is unclear, speak with a licensed insurance advisor or apply for a customized policy today.
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