Insurance Consortium to Prevent Auto Fraud

Iranian insurance companies have formed a consortium for covering brand-new cars to put an end to automakers’ fraud. Carmakers persuade insurers to sell policies at a 15-20% discount but receive the full premium from buyers, Iran Insurance Company’s website reported. The company has been selected as the leader of the consortium that is forgoing auto policies altogether. Last March, the Central Insurance of Iran has barred insurance companies from signing direct contracts with automakers for selling auto policies. Based on a recent agreement, insurers are not permitted to offer any discount to automakers. Insurers also hope that the new measure would reduce losses in the auto category.