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Iran: Nov train crash estimated to cost lead insurer $7 mln

Source: Middle East Insurance Review | Jan 2017

Parsian Insurance Company, which is affiliated to Parsian Bank and one of the four major private insurers in Iran, will compensate the victims of the 25 November train crash in the north central province of Semnan, in which more than 40 people died and over 100 others were injured. Parsian faces a bill of around IRR220 billion (US$6.8 million) in compensation costs, according to estimates.
 
   Parsian is the insurer carrying personal accident policies for passengers of Islamic Republic of Iran Railways. Based on the contract, Parsian is set to pay roughly IRR500 million to compensate medical costs to the injured, reported the Financial Tribune citing a media statement issued by the insurer.
 
   The insurer should also pay blood money to families of those who lost their lives in the incident, which amounts to IRR1.93 billion per person.
 
   Mr Abbas Akhoundi, the Minister of Roads and Urban Development and Mr Abdolnasser Hemmati, President of the insurance regulator, Central Insurance Company of Iran, in two different statements have assured the injured and families of the deceased that they would be quickly indemnified.
 
   Mr Hemmati had called on Parsian to finalise investigations as soon as possible and compensate the victims. Under the law, insurers have to pay at least 50% of the estimated losses before official probes are concluded.
 
   The accident happened when a passenger train, en route from Semnan to Mashhad collided with the rear end of a Tabriz-Mashhad passenger train which had stopped due to technical problems apparently duet to the freezing weather. Four train coaches were derailed and two caught fire in the accident.
 
   Mr Mohsen Pour Aqaei, head of Iran Railways, said “human error” was the cause of the accident.
 
“Early investigations show that the Tabriz-Mashhad train had broken down and had to stop for repairs. Controllers had halted all the trains from travelling on that route. Not informed about the issue, the next shift controller allowed trains to move toward Mashhad.”
 
IRR1,000= US$0.03
 
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