Mandatory Disaster Insurance Is Law
Economy, Business And Markets

Mandatory Disaster Insurance Is Law

Lawmakers on Tuesday passed a law, requiring all houses to be insured against natural disasters. They also approved a proposal for establishing a special fund specialized for covering losses caused by natural disasters.
The Majlis also tasked the Central Insurance of Iran–the industry' regulator– to open a special account for reinsurance of natural disaster, ISNA reported.
The CII, Disaster Management Organization and Supreme Council of Insurance Industry are bodies charged with the task to calculate the risks and set the price for natural disaster insurance policies. Homeowners can buy supplementary policies if they want a more comprehensive coverage.
As per the new law, insurance companies must also allocate a special account for their natural disaster policies.

Unchallenged Rule
The new law says Iran Insurance Company is the only company allowed to sell natural disaster policy, for now, while other firms should await qualification by the CII based on their capital adequacy performance.

 Iran Insurance Company–the sole state-owned firm-accounted for 39.47% of the premium in the last fiscal year that ended in March. The balance is handled by 30 private insurance firms.

Parliament also tasked the government to increase the Iran Insurance Company's capital by 500 billion rials ($16.49 at the official exchange rate) from the public budget.
From the 20 million residential units in Iran barely 20% are insured against natural disaster, according to the Disaster Management Organization. The figure is expected to reach 50% by next March.
Iran has suffered almost 125 cases of natural disasters over the past 25 years, resulting in 73,000 fatalities, 145,000 injuries, and more than 41 million lives affected. The disasters cost close to $20 billion, according to data published by the CII.

Short URL : http://goo.gl/Qws9zZ
  1. http://goo.gl/83qIxi
  • http://goo.gl/623rVY
  • http://goo.gl/4XKZwk
  • http://goo.gl/8zA8qc
  • http://goo.gl/NF5QsN

You can also read ...

German firms, especially those without business links to the US, want to continue their Iran business.
While Germany’s big banks are studiously avoiding Iran-related...
New Rules Allow  Direct Forex Sale
Businesspeople that have validated their purchase orders are...
Iran is the world’s biggest saffron producer and accounts for more than 90% of the global production.
Iran Mercantile Exchange launched saffron futures trading for...
Iran Khodro Expanding Presence in Iraqi Market
Iran’s largest carmaker, Iran Khodro, is set to export 6,000...
Tesla Admits Model 3 Braking Issue, Promises Fix
Tesla Inc’s Chief Executive Officer Elon Musk admitted on...
Uber Plans Taxi-Hailing  in Japan
Uber Technologies plans to launch its first taxi-hailing pilot...
Banking Amendments Approved
The Money and Credit Council approved the Central Bank of Iran...
Prices have been jacked up by car dealers and some makers by 6-22% only in the past few weeks.
Authorities are set to ratify new car prices for models...