Khodrocar – In Iran car insurance divided to two parts of mandatory and optional. Mandatory insurance is insuring the passengers and part of financial damages but drivers can choose to have an optional insurance to insure equipment of car against robbery or damages.
In Iran some people think that accidents happen to others so they shouldn’t buy body insurance but others are thinking that other drivers are not good so they have to insure their cars against bad driving of other people. Two matters about body insurance are keeping people away to have this kind of insurance, first long process to approve an insurance and second is part of damage won’t pay as franchise.
Now the question is does any action has been done to remove these problems or would it increase the request of body insurance if franchise reduce?
"Because insurers share in their risk and contribute to risk aversion, insurers are considered by most insurers for insurance policies, especially franchised car insurance.” Abdolreza Eisvand Heidary, expert of insurance industry told khodrocar reporter.
"Car body insurance is called as a luxury insurance but it doesn’t mean that average people won’t buy it at all. Approving information is important in the first process of insuring so it take a long time, hence, insurance companies have moved to rely on innovations and new technologies that start producing insurance startups to reduce the path and length of the process of approval and issuance of the body insurance policy, which requires the implementation of such operations. Produces and introduces high security agile startups.” He added.
"Inflation reduced people’s real income and it had negative effect on buying body insurance but on the other hand because automobile is an investment and finance so drivers of luxury cars are keep buying car body insurance. With all frames, insurance companies can change the franchise due to the level of risk of the owners of the insurance policy.” He said.
"Currency turbulence and inflation increment in current year were reasons to make cars and houses became expensive so people who had insurance should buy the supplementary of capital increase. This addendum is valid only from the date of receipt of the addendum until the expiration date of the insurance policy. The payment of damages is made in accordance with the provisions of the insurance policy up to the limit of the obligations of the insurance policy after the deduction of the relevant deductions, including the deduction of the franchise fee.” He added.
Khodrocar Reporter: Amir Hossein Lavasani
Khodrocar Translator: Amin Zamani