Insurance Official Elaborates on TIC Failure
Economy, Business And Markets

Insurance Official Elaborates on TIC Failure

Regulations set forth by Central Insurance (primary regulator of insurance affairs in Iran) stipulate that all insurance companies are obliged to invest their capital within the real estate market, banks, and other markets but Tose’e Insurance Company (TIC) failed on several occasions to do so; the main reason that led to the company’s demise, IRNA reported, citing an industry official.
The Central Insurance had been monitoring the activities of TIC for over a year, Mohammad Parizi, deputy economy minister for banking and insurance affairs, said in a television interview Saturday night shedding some light on the matter. “During the period several cases of violations of law were spotted.”
The insurance company had repeatedly pledged (in form of written commitments) to refrain from illegal acts and to align itself with the principles, he explained. Eventually, however, once the financial statements of TIC were thoroughly assessed, the Supreme Council of Insurance nullified the company’s work permit in February, he added.
Henceforth, Iran Insurance Company (IIC), the largest state-owned insurer, took over the failed insurer’s firm. Ever since the transition, a large part of TIC’s debts to its client’s have been settled by the succeeding owner.  
Regarding the activities of Central Insurance, the official stressed that Central Insurance should refrain from interference in insurance companies’ affairs, and instead, “it must focus on monitoring the activities of the companies.”
Abootaleb Chomaghloo, an insurance expert, has also commented on the issue saying as long as Central Insurance has commercial interests in Iran’s insurance market, it is highly likely that further cases of digressions would occur. “To avoid such troubles, the policies and vision of the Central Insurance need to be corrected,” he stressed.
Central Insurance must concentrate on the macro sectors of insurance; it needs to implement precautionary measures which would prevent future possibilities of financial fraud and transgression, he said.    


Short URL : http://goo.gl/xSwyGa

You can also read ...

Support for  Forex Measures
The head of Competition Council welcomed efforts made by the...
The looming crisis in the emerging markets, set off by the run on the Turkish lira, has had a more direct impact on the Iranian rial than anything the US has claimed.
Since the beginning of the fiscal 2018-19, the Iranian rial...
CBI: Currency Inflow Growing Steadily
Governor of the Central Bank of Iran said on Saturday that...
UK Firm: Progress Made With Iran Airport Contract
UK-based security solutions supplier Westminster Group said it...
Yu Chang Hwang (L) and Mohammad Reza Bakhtiari
South Korea’s new ambassador to Iran, Yu Chang Hwang, said...
Without Waivers, US Sanctions on Iran Will Cripple Iraq
Iraqi officials, struggling to form a new government months...
Uber in Talks to Buy Food-Delivery Company
Uber Technologies Inc. is in early talks to buy food-delivery...
Watermelon Exports  Exceed $100m
Iran exported 569,974 tons of watermelon worth $106.42 million...