Iran Announces Major Shift to Driver-Centric Insurance System
In a significant move to reform the nation’s insurance framework, the Central Insurance of the Islamic Republic of Iran, in close collaboration with the Traffic Police of the Law Enforcement Command (FARAJA), is implementing a major overhaul of the Third-Party Insurance law. This transformative policy, set to take effect in the coming months, will fundamentally change how premiums are calculated, shifting the focus from the vehicle to the individual driver.
A Fairer System for Responsible Drivers
The core objective of this initiative is to replace the current “vehicle-centric” model with a “driver-centric” one. This means that a driver’s personal record of traffic violations and accidents will become the primary factor in determining their insurance costs, rather than the collective history of all individuals who may drive a shared vehicle.
Majid Meshalki, Deputy of the Central Insurance, confirmed the implementation of this plan, describing it as a vital step in reforming the country’s insurance system. He emphasized that the change is designed to foster greater fairness in insurance pricing.
Rewarding Safety, Incentivizing Compliance
This new structure creates clear winners and is positioned as a powerful incentive for lawful driving.
- Benefits for Low-Risk Drivers: Law-abiding motorists with clean records will see a direct financial benefit. They will no longer be penalized for the infractions of other family members or drivers who use the same car, and their insurance premiums are expected to decrease.
- Costs for High-Risk Drivers: Conversely, drivers with a history of frequent violations and accidents will be directly subject to increased insurance costs, ensuring they bear the financial responsibility for their higher risk profile.
Authorities state that this measure will serve as a major cultural incentive for safe driving and play a crucial role in accident prevention on both urban and inter-city roads.
Digital Transformation: AI and Online Sketches
Running parallel to the insurance shift is a landmark digital project known as the “Online Accident Sketch” (Kroki). This joint initiative between the Central Insurance, FARAJA, and a contracting company aims to fully digitize the accident reporting process.
- Eliminating Paperwork: The project will completely phase out paper-based accident sketches, creating integrated data systems between the involved institutions.
- Leveraging Artificial Intelligence: The consolidated data will be analyzed using AI to enable more precise and effective policy-making.
- Accelerating Judicial Processes: By linking the data centers of FARAJA and the Central Insurance, transparency will be increased, and the handling of judicial cases related to accidents will be significantly expedited.
- Public Access to Vehicle History: The “Online Accident Sketch” system will also empower citizens. When buying or selling a vehicle, individuals will be able to access comprehensive information about a car’s accident history and authenticity through relevant online platforms.
The Central Insurance has announced that all necessary preparations for this digital leap, including budget allocation, equipment procurement, and training for personnel, have been completed. This paves the way for insurance and law enforcement institutions to work in synergy, dramatically increasing the accuracy and speed of case handling for the benefit of the public.