60057
Vehicle Insurance About to Get Fairer
Economy, Business And Markets

Vehicle Insurance About to Get Fairer

A number of provisions in a revised law pertaining to motor insurance will ensure that premiums will be set fairly by considering criteria such as driving records, announced the head of the Central Insurance of Iran.
“One of the most serious shortages in the insurance industry was the fact that the auto insurance law was very old,” Abdolnasser Hemmati was quoted as saying by IBENA.
“This category of insurance, which had accounted for a large volume of the insurance industry’s portfolio, faced many problems, but was fortunately amended and the new Vehicle Insurance Law was approved.”
The amendments in question were passed by the parliament in March and were subsequently notified by President Hassan Rouhani in June.
Personal auto policies remain the insurers’ main source of revenue, accounting for 38% of their portfolio.
According to Hemmati, directives pertaining to three articles (18, 30 and 3) of the law have been devised by CII and passed to the Cabinet for final approval after the High Council of Insurance gave the green light. 
Noting that these directives are under the review of related commissions, he added that the first draft of a number of other directives is also being processed.
Article 18, he said, ensures that “driving record and also social considerations such as how commonly the vehicle is used will act as the basis for the structure of premiums so that they would be fairer”.
As to other benefits of the new motor insurance law, the official says it will prevent individuals from being imprisoned as a result of a debt related to car accidents.
The CII chief noted that with the implementation of this law, those who are injured as a result of a car accident will be able to claim their rights in the shortest amount of time possible.
“If an accident is not deliberate and the party at fault has not violated any other laws and regulations, they would be considered guilt-free and all their insurance commitments will be borne by insurance companies,” he said.
Under the new law, he stressed, none of the parties involved in a car accident will go to jail.
Hemmati said many legal ambiguities and loopholes concerning the rights and commitments of the insurer and the insured have been cleared, conditions of paying claims have been eased and “obligations of related entities and organizations” have been defined.   

 

Short URL : https://goo.gl/qLOnTV
  1. https://goo.gl/ZrfkXY
  • https://goo.gl/fApuY1
  • https://goo.gl/XX7Bmp
  • https://goo.gl/8WMY0b
  • https://goo.gl/jHse6Z

You can also read ...

Europe May Tap Cryptocurrencies to Shield Iran Against US Sanctions
The European Union may opt for digital currencies in its...
Iran’s net hot-rolled coil consumption was 5.6 million tons in 2017, of which 0.8 million tons were imported.
Russia and Kazakhstan are temporarily stepping back on sales...
Secondary Forex Market: Corruption Loopholes Abound
Two goals set have been set for the recent establishment of...
EU foreign policy chief, Federica Mogherini, hailed the imposition of the blocking statute on Monday as a “consistent step forward”.
As it races to save the Iran nuclear deal, the European Union...
Deputy Economy Minister Defends Gov’t Forex Policy
The government’s policy to allocate dollars and euros to...
Colza Production Exceeds Expectations
The government has purchased more than 300,000 tons of colza...
Plastic Production Plant Launched in Chabahar
A factory producing different kinds of plastic products was...
Interbank Rate Tweak to Impact Interest Rates
Officials at the Central Bank of Iran have announced the...

Add new comment

Read our comment policy before posting your viewpoints

Trending

Googleplus