Iran: New auto insurance rules peg premium to driving record
Source: Middle East Insurance Review | Dec 2017
The insurance regulator, Central Insurance of Iran (CII), has announced new vehicle insurance regulations under which drivers’ behaviour will have a direct impact on their motor insurance rates.
Dr Abdolnaser Hemmati, President of CII, said: “Based on the new rules, drivers with major traffic offences will have to pay higher insurance fees.”
Those with negative penalty points will face an increase in premiums of up to 30%, according the Financial Tribune attributing the statement to Dr Hemmati.
The penalty point system was introduced by the Traffic Police in 2011 as a deterrent against lawless driving and dangerous traffic behaviour. Under the system, each traffic violation attracts a number of negative points. For instance, dangerous speeding means 10 minuses. If the total points on a driver’s record equal or exceed 30, the court suspends the driving licence for three months. If a driver gets more than 25 negative points the second time, the licence is suspended for six months. If the driver accumulates a further 20 negative points, he is banned from driving for one year.
Dr Hemmati said that the CII is planning to offer safe-driving courses in collaboration with the Traffic Police. “Those attending the classes will receive a 5-10% discount on their car insurance premium,” he said.
Road accidents in Iran kill an estimated 17,000 people and injure 350,000 every year. M