Economy, Business And Markets

Vehicles Without Insurance Will Be Impounded

Vehicles Without Insurance Will Be ImpoundedVehicles Without Insurance Will Be Impounded

Any driver without a personal auto policy will have his car confiscated by the police, as per a new directive approved by the Cabinet.

“If the owner of the vehicle claims to have a credible PAP [but does not hold the relevant document], the police is obligated to make an inquiry from the insurance company and check the veracity of the claim,” the directive signed by First Vice President Es’haq Jahangiri was cited by IBENA.

If the owner does not have a credible policy, the person’s vehicle will be impounded.

The directive also prepares the ground for a constructive collaboration between the Central Insurance of Iran and the traffic police. It obligates CII to help the law enforcement and other relevant bodies identify vehicles that have a credible PAP online.

It also legally binds the police force to provide CII with access to information about vehicles.

The directive, devised at the behest of the Ministry of Interior and with the assistance of the Ministry of Roads and Urban Development, the judiciary and the Central Insurance of Iran, also bans public transport companies from using vehicle lacking PAP.

It states that the release of any impounded vehicles belonging to these companies will depend on them acquiring an insurance policy first.


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