The Central Insurance of Iran company has asked insurers to respect the approved return of premium on life insurance policies following reports to the effect that some companies are offering higher-than-legal returns. CII’s supervisory department sent a letter to the insurance companies reminding them that according to the Supreme Council of Insurance Industry, the maximum return rate for life insurance is 18%, Risknews website reported. The legal rate ceiling is 18% for policies with a duration of five years or less. The rate for policies covering 5-10 years is set at 18% for the first five years and 15% for the rest of the period. For periods exceeding 10 years, insurers are allowed to offer only 10% returns.
