Business And Markets

Universal Insurance Fund Proposed Again

Universal Insurance Fund Proposed Again Universal Insurance Fund Proposed Again

The governor of the Central Bank of Iran announced in an Instagram post Sunday a plan to create a universal insurance fund to cover losses inflicted by natural disasters. 
Abdolnasser Hemmati said creation of the fund was proposed in a meeting of the Supreme Council of Economic Coordination - a body comprising heads of the three branches of government formed at the behest of the Leader Ayatollah Seyyed Ali Khamenei to address major economic issues.  
Hemmati said the council agreed on the importance of the issue and expressed the hope that the fund could be set up in the near future. 
“Considering the fact Iran is highly susceptible to natural disasters, I realized in today’s meeting that the proposal  will be pursued by the economy minister and the head of Central Insurance company of Iran,” he wrote. 
The idea was earlier proposed by the CII when Hemmati was the company’s director two years ago, and it was approved by the parliament. But the Guardian Council -- a watchdog that ensures laws are in line with the Constitution and Islamic principles --  rejected the proposal. 
Recent floods in Iran have are inflicted losses said to be in the region of 350 trillion rials ($2.5 billion), according to Interior Minister Abdolreza Rahmani Fazli. 
A member of the High Council of Insurance  - a major insurance regulatory body – said Monday that barely 10% of the flood-affected people had property and farmland insurance. 

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