Third party insurance is the most important insurance in motor vehicles, which usually has to be paid separately when the owner buys each car. The law has been amended since the new year, raising concerns among some, and some believe that the new rules will include lower insurance discounts for car owners. In this article, we want to take a brief look at the changes in the insurance law in 1400 to reduce some of the ambiguities in the public mind about the new insurance conditions.
1. When was the new insurance law implemented?
The law on compulsory third party insurance was approved by the parliament on May 10, 2016 and led to new amendments to the previous laws. However, the implementation of the new clauses was postponed until the adoption of the regulations. After the approval of the bylaws in January 2017 by the Cabinet, the new law was notified to the insurers by the Central Insurance. In 1999, with the provision of systemic control infrastructure, the implementation of this law was announced by the Central Insurance in the form of an emphatic circular, and the insurance companies implemented it from March 2010.
2- In the new law, does the insurance discount belong to the car or the owner?
One of the main axes of the new insurance law is that the insurance is driver-centric instead of vehicle-centric. Therefore, it is no longer possible to transfer the insurance discount to the buyer while selling the car. On this account, having an insurance discount will not be an advantage for selling a car. Instead, the owner can use his discount for the next car or even if he does not buy a new car, this discount will be kept in his insurance records.
The owner is also able to transfer his insurance discount to the car of a first-degree relative, which includes his wife, parents and children. Even in the event of the death of the insured driver, his non-damages discounts can be transferred to his legal heir. On the other hand, if a person owns two or more cars, he can transfer the discount for not insuring his insurance between his cars. The only condition of this clause is that the use of both cars is the same and the document, license plate and insurance policy of both cars are in the name of a specific person.
3- Who benefits from the new insurance law?
Abbas Khosrow Jerdi, director general of the Central Insurance Non-Life Insurance Supervision, said that since the no-damage discount means each person’s driving history and skills, naturally this discount should not be transferred from a low-risk person to a high-risk person. Protecting the right to a non-damages rebate for individuals can lead to better control of drivers’ risk and lower premiums. This plan is definitely welcomed by people at low risk of driving.
4 – Who is the new insurance law to the detriment of?
Those who bought the car from an acquaintance and changed the license plate a few years later will be affected by the new law. Because by changing the license plate, their car insurance discounts will be zero. The other victims of the new law are high-risk drivers who, even if they change their car, will not have any right to insurance discounts.
5 – What is the meaning of gradual discount on third party insurance?
One of the problems with the previous insurance law was the loss of all discounts with a loss. This problem is solved in the new law and the discounts are deducted in a gradual manner. The minimum non-damage discount per year is set at 5% and for the fourth year, it will increase to 70%. After 14 years, the insurance non-deductible discount will remain at 70%.
6. The guilty driver is also covered
One of the important advantages of this new law is the possibility of using third party insurance for the guilty driver. Of course, only if the culprit driver is injured, his own third party insurance is responsible for providing his physical damages. Receiving compensation for the guilty driver is equal to the diyat in non-haram months. In addition to third party insurance, third party insurance also covers the insurer.
7. What happens if the person behind the wheel does not own the car?
In the old days when car insurance was owned, everyone behind the wheel would naturally use car insurance if they caused damage. Now that driver insurance is focused, some are worried about whether the insurance will be willing to pay if the damage is caused by personal driving other than the owner of the car.
Under the new insurance rules, insurance is still liable for damages in the event of a car accident by someone other than the owner. Because the car is covered anyway. But the main point is that in the event of an accident by a person other than the owner of the car, in addition to that person’s own discount history, the owner’s discount history will also be lost.
Of course, if a car is used by several people, it is possible to prevent the original owner’s discount from being damaged by registering all of them for a license plate. Because if this is done, if an accident occurs, only the discount history of the driver responsible for the accident will be zero.
The Central Insurance Organization explicitly stated on February 6, 2017 that non-compliance of the driver and the insured with their personal details will not be an obstacle to receiving compensation from the insurance. According to the official directive of the Central Insurance, the insurance company must receive the driver’s license of the vehicle at the time of issuing the insurance policy and send it to the Central Insurance through the Sanhab system. Central Insurance emphasizes that the information of vehicle drivers is received only for the purpose of studies and statistical calculations of this organization and is used to issue third party insurance policies based on the characteristics of each driver. Therefore, non-compliance of the driver and the insurer will not cause any problem in receiving compensation from the insurance.
Summarizing the above cases, it can be said that the new law is not only to the detriment of individuals and drivers, but also has great benefits for prudent and low-risk drivers. It is worthwhile for the central insurance organization and the insurance companies to resolve the ambiguities and concerns that have arisen through cooperation with the media. It only needed a good media appendix to keep everyone informed of the new law amendments.