Insurance parity is seen as a breakthrough for Iranian women, as the positive development contributes to gender equality for car drivers.
Earlier this week, Iran’s legal vetting body approved a new bill that will see female victims of road accidents paid the same amount in compensation as men. This may not be a suffragette-like moment, though it is something to make the country’s auto insurance fairer for all nationals.
This was long in the making, as women were paying the same premiums and naturally expected an equal return.
Third-party insurance has also been made mandatory, allowing insurance companies across the Islamic Republic to set the respective premium rates.
Henceforth, relatives of women, including those who are the main breadwinners of a family, will receive the same amount of compensation granted to men’s next of kin, which makes them entitled to 1.75 million rials ($50,000 at current market exchange rates) granted in road fatalities.
The new bill was approved by the Guardians Council, a 12-member body responsible for ensuring legislation conforms to Sharia (Islamic law), according to the report. A previous bill had been proposed in 2008, but did not meet the standards for a bill.
By law, all proposed bills must be checked by the council that verifies the compliance of all its aspects with the Sharia and the Iranian Constitution. What this implies is that the council has ratified it into a law in entirety.
Automotive insurance companies have not announced their stance on the issue so far, but they will ultimately have to accept the higher cost of payouts.
The cost of automotive insurance premiums for women need not differ from those for men, simply because third-party payouts have been equalized.