The Central Insurance company of Iran is to launch two platforms to ease auto accident reporting, in collaboration with the Traffic Police and knowledge-based companies.
Majid Behzadpour, the CII chief, told IRAB that minor car accidents will no longer need an official report by the police, as long as the damages does not exceed 200 million rials.
"We have developed a platform for car owners to send the necessary information about vehicle accidents," he said. "Insurance companies will settle the indemnity using the same platform."
The project is planned to be unveiled this week.
The CII is also working on a joint project with the Traffic Police which allows online reporting of road mishaps by the police. "Settlement of damages in car accidents has been a time consuming process…When the online reporting process comes on stream officers will use special hardware to instantly submit the information to the relevant authorities."
This would be in the interest of insurance policyholders, as the project would considerably reduce the duration of payout process, Behzadpour added.
Earlier in April, the CII and Traffic Police signed an agreement to develop a comprehensive platform for online car accident reporting
Earlier in April, the CII and Traffic Police signed an agreement to develop a comprehensive platform for online car accident reporting.
Third-party auto insurance is mandatory in Iran and car owners lacking the policy are penalized. It essentially is a form of liability insurance according to which, in the case of accidents, the insurer is required to compensate the harmed party for physical or financial loss.
Third-party auto insurance accounted for the largest share of premium with nearly one-third (34.8%) of the total income during 11 months to February 19. Premium from this segment reached 350 trillion rials ($1.34 billion), up 46.7% on the same period last year.
Third party auto payouts accounted for 32.4% of the total payout. Nearly 175.1 trillion rials ($673 million) was paid in compensation in this category alone.
The platform is designed to also help reduce fake car accidents, Behzadpour said. Auto insurance fraud is estimated at 20 trillion rials ($71m) a year.
The official stressed that the CII has taken a supportive approach towards knowledge-based companies and startups. "Insurance companies have no option but to embrace innovative technologies as it will improve and augment their operations," he said.
"We have plans for promoting knowledge-based firms in collaboration with the Vice Presidency for Science and Technology."
The CII is working to create a special fund to cover the risks related to innovative insurance coverage. "Startups will be eligible to access the potential fund for the first insurance product they send to the market."
