Iran: Regulator calls for 40% cut in auto tariffs
Source: Middle East Insurance Review | Jan 2017
Central Insurance of Iran (CII), the insurance industry’s regulator, has proposed a 40% cut in premium rates for personal auto policies.
Mr Abdolnasser Hemmati, CII President, announced that the regulator has sent the proposal to the judiciary to make the final decision on the issue, according to a report in the Financial Tribune.
The premiums for personal auto policies are calculated based on the blood money for a single person, which was IRR1.9 billion (US$59,000) in 2016. The CII has called for a revision in the criterion for pricing policies, as Shariah law allows paying the equivalent of 10,000 silver coins as blood money, equivalent to IRR1.07 billion at present.
Mr Hemmati added that currently, 30% of vehicles running on Iran’s roads remain uninsured, “mainly due to the high premium rates”.
IRR1,000 = US$0.03