Iranian Motorists And The Insurance Question

Iran has a significant automotive industry, with car manufacturing accounting for 10% of the country's GDP and 4% of the workforce. There are around 14 million vehicles in Iran, and as of 2012, 90% of them were insured. The Central Insurance of Iran regulates the insurance sector, and there are 27 insurance firms in the country, 26 of which offer commercial insurance. The Iran Insurance Company is the largest, with a 39.47% market share as of 2016.

Iranian insurance companies

Iran's insurance sector is regulated by the Central Insurance of Iran. As of 2014, there were 25 insurance companies active in Iran, of which 24 were privately owned and one was state-owned. The state-owned company is called Bimeh Iran Insurance Co. and, in 2014, it accounted for 39.47% of the market's premium. The two largest private insurance companies in Iran are Asia Insurance and Alborz Insurance, which held 10.15% and 7.56% of the market share, respectively, as of 2016.

In 2008, the total insurance premiums generated in Iran were $4.3 billion, which is less than 0.1% of the world's total, while Iran has approximately 1% of the world's population. The insurance penetration rate in Iran is approximately 1.4%, which is significantly below the global average of 7.5%. This underdevelopment is also reflected in the product diversity of the insurance sector.

Approximately 60% of all insurance premiums in Iran are generated from car insurance. This is due to the fact that, as of 2012, there were about 14 million vehicles in Iran, 90% of which were insured. In contrast, only 2 million out of the 10 million motorcycles in Iran were insured in the same year.

In addition to the Central Insurance of Iran, there are also other companies that offer insurance services in Iran. For example, Iran Assistance is an assistance company founded in 1992 that provides various services, including auto repair, passenger accommodation, and dispatch of spare parts.

It is worth noting that, due to the sanctions imposed by the USA, many travel insurance companies do not offer coverage for travel to Iran. This includes not only American companies but also some Australian and European companies. As a result, individuals travelling to Iran may need to seek special travel insurance that specifically covers this country.

Iranian car ownership

Car ownership in Iran has been on the rise since the early 2000s, with the country's automotive industry being the third most active industry in the country, after oil and gas. In 2008, there were approximately 14 million vehicles in Iran, and by 2014, this number had increased to 14.5 million. Iran's automotive industry accounts for 10% of the country's GDP and employs about 700,000 people, or 4% of the workforce.

The history of Iran's automotive industry can be traced back to the 1960s when the country invited Western firms to help develop a domestic automobile industry due to a lack of technical know-how. Under the Mohammad Reza Shah Pahlavi regime, Iran's annual automobile production reached 200,000 units. However, after the 1979 Iranian Revolution and the Iran-Iraq War, production decreased significantly. It wasn't until the early 2000s that automobile production began to grow exponentially again.

Today, Iran is the 20th largest automaker in the world and one of the largest in Asia, with an annual production of more than 1.6 million vehicles. Iran Khodro and Saipa are the two largest Iranian car manufacturers, accounting for 94% of the total domestic production. Other notable manufacturers include Azhitechs, Bahman Group, Rakhsh Khodro, and Kerman Motors. The Iranian automotive industry produces a variety of vehicles, including cars, 4WDs, trucks, buses, minibuses, and pickup trucks.

In recent years, the Iranian government has made efforts to upgrade the local fleet by pulling outmoded vehicles off the road and providing loans of up to $7120 for the purchase of domestic cars. However, international sanctions and high inflation have impacted the growth of the passenger car segment. Despite these challenges, the automotive industry in Iran continues to play a significant role in the country's economy and is expected to grow further.

Iranian auto insurance costs

Iran's automotive industry is a significant part of the country's economy, contributing 10% of its GDP and employing about 4% of its workforce. With an annual production of over 1.6 million vehicles, Iran is the 20th largest automaker globally and one of the largest in Asia.

The Central Insurance of Iran regulates the Iranian insurance industry, which includes more than 25 insurance companies, with all but one being privately owned. In 2008, there were 14 million vehicles in Iran, and it is estimated that 90% of them were insured. This high insurance rate is partly due to the requirement that valid travel insurance is essential for obtaining an Iranian visa on arrival at international airports.

The cost of auto insurance in Iran can vary depending on several factors, including the type of vehicle, its age, and the coverage options selected. However, on average, auto insurance in Iran tends to be more affordable compared to some other countries. This is partly due to the low average income per capita and the limited product diversity in the insurance industry.

In 2008, the total insurance premiums generated in Iran were $4.3 billion, with approximately 60% coming from car insurance. The insurance penetration rate in Iran is approximately 1.4%, significantly lower than the global average of 7.5%. This indicates that insurance, including auto insurance, is not as prevalent in Iran as it is in other parts of the world.

When it comes to specific auto insurance costs in Iran, there is limited information available. However, it is known that in 2012, Bimeh, a local insurance company, offered travel insurance at suspiciously low rates, with prices starting at €14 for a one-month policy. On the other hand, international insurance providers like IATI and True Traveller offer plans for travellers to Iran, with prices ranging from €40 to €68 for basic coverage, and higher for more comprehensive plans.

It is worth noting that due to sanctions imposed by the USA, many travel insurance companies do not offer coverage for travel to Iran. As a result, specialized insurance that covers Iran may be required, and it is essential to carefully review the policy details to ensure adequate coverage.

Iranian auto insurance coverage

Iran's automotive industry is a significant part of the country's economy, contributing 10% of its GDP and employing about 4% of its workforce. With an annual production of over 1.6 million vehicles, Iran is the 20th largest automaker globally and one of the largest in Asia.

The Central Insurance of Iran regulates the Iranian insurance industry, which includes more than 25 insurance companies, with all but one being privately owned. In 2014, approximately 60% of all insurance premiums in Iran were generated from car insurance, indicating the significant role of auto insurance in the country's insurance sector.

While specific details about the coverage provided by Iranian auto insurance companies are not readily available, it is safe to assume that they offer standard comprehensive and third-party liability coverage. Iranian auto insurance is likely to include protection against theft, accidents, and natural disasters, similar to auto insurance in other parts of the world. Additionally, Iranian auto insurance may provide medical coverage and legal assistance in case of an accident.

It is worth noting that Iran has a high rate of motorcycles on its roads, and motorcycle insurance is a separate consideration. As of 2012, only 2 million out of 10 million motorcycles in Iran were insured. This disparity could be due to the relatively lower cost of motorcycles compared to cars, as well as the lack of stringent enforcement of insurance requirements for motorcycles.

When it comes to travel insurance for visitors to Iran, it is important to note that due to sanctions imposed by the USA, many travel insurance companies do not offer coverage for travel to the country. However, specialised travel insurance options are available, and it is essential for visitors to obtain valid travel insurance before or upon arrival in Iran to obtain their visa.

Iranian auto insurance companies

Iran has a well-developed auto insurance sector, with a range of companies offering vehicle insurance policies. The Iranian insurance industry is regulated by the Central Insurance of Iran, which oversees both public and private insurance providers.

The first Iranian insurance company, Bimeh Iran, was established in 1935 and remains the largest in the country, with over 50% of the national market share. Bimeh Iran offers vehicle insurance as part of its portfolio, which also includes life, accident, and medical insurance.

There are a number of other prominent Iranian insurance companies that offer vehicle insurance, including:

• Asia Insurance Company: the largest private insurance company in Iran, offering vehicle insurance as well as fire, medical, life, and savings insurance.
• Alborz Insurance Company: the first public insurance company in Iran, offering vehicle insurance, as well as cargo, liability, fire, and life insurance.
• Dana Insurance: the third-largest insurance company in Iran, providing vehicle insurance and motorcycle insurance, among other services.
• Iranian Reinsurance Company: a company that provides reinsurance for other domestic insurance companies, rather than offering insurance services directly to customers.
• Amin Reinsurance Company: another reinsurance company that provides services to other insurance companies, including policies in all fields of insurance.
• Parsian Insurance: the largest private insurance company in Iran in terms of capital, offering commercial insurance, including property, liability, and personal insurance.
• Pasargad Insurance: a company that provides insurance services in the field of life and non-life insurance, including vehicle insurance.
• Tejarat-e No Insurance: a company that aims to provide specialised services, including vehicle insurance, cargo insurance, and fire insurance.
• Taavon Insurance: a company that offers vehicle insurance, third-party insurance, fire insurance, and medical insurance, among other services.

In addition to these domestic insurance companies, there are also international insurance companies that operate in Iran, such as Iran Insurance in the UAE, which offers motor insurance.

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