CII Mulls Lower PAP Rates

Central Insurance of Iran, the industry’s regulator, has proposed a 40% cut in premium rates for personal auto policies. Abdolnasser Hemmati, president of CII, announced that the regulator has sent the proposal to the judiciary to make the final decision about the issue, Shana reported. PAP premiums are calculated based on the blood money for a single person, which is 1.9 billion rials ($59,000) this year. The CII has called for a revision in the criterion for pricing policies, as Shariah (Islamic laws) allow paying the equivalent of 10,000 silver coins as the blood money, equal to 1.07 billion rials ($33,300) at present. Currently, 30% of vehicles remain uninsured, “mainly due to the high premium rates”, Hemmati added.