Iran Insurance Company (IIC), the only state-owned insurer in the country, plans to offer earthquake insurance for residential units, according to a statement on the company’s website.
The earthquake policies were implemented in the first pilot phase in the provinces of Isfahan, Kerman and Yazd from 1 February, said Mr Mohammad Zahednia, IIC’s deputy for technical affairs.
As soon as the Central Insurance of Iran (CII), the industry’s regulator, gives the green light, the coverage will also be extended to other provinces, reported Financial Tribune, citing the statement.
The move follows the magnitude-7.2 earthquake which hit the western province of Kermanshah last November and was the biggest such event in a decade. It claimed the lives of more than 600 people.
According to Mr Zahednia, the quake insurance will cover buildings subject to the standards devised by the Ministry of Roads and Urban Development, buildings with concrete, metal and brick frames dating back to 20 years, in addition to all the fixtures inside the buildings, the cost of providing temporary residence for quake-stricken citizens and clearing the rubble up to a ceiling.
As to how the premium rates are determined for the cover, he said various cities and districts have been divided into five categories according to the level of risk faced by them and premium rates were fixed accordingly.
“Along with the earthquake insurance, the Central Insurance of Iran plans to establish a natural disaster insurance fund,” CII President Abdolnaser Hemmati has said, adding that more than 85% of residential units are not covered by fire insurance, the class of insurance that also includes earthquake coverage. M