Iran Insurance Company, fully owned by the government, has insured Iran Air’s new Airbus jet that arrived in Tehran on Thursday.
Mohsen Pourkiani, IIC’s chief executive, said his firm has provided full
coverage for Iran Air’s new Airbus A321, including passenger liability
insurance, public liability insurance and airplane body insurance.
The official was quoted as saying by the Ministry of Roads and Urban
Development’s website that IIC would insure all the airplanes that will
be added to the fleet of the state carrier Iran Air.
IIC’s website claims that the coverage extends to all international
airports. However, Iran Air officials have announced that the plane
delivered on Thursday will be currently used only for domestic flights.
“The company was involved in the process of purchasing new airplanes,”
said Pourkiani, adding that it provided advice regarding
insurance-related issues and requirements necessary for purchasing the
The insurer did not provided more details about the terms of the contract.
At present, 19 Iranian airlines own an aggregate of 273 aircraft with an
average age of 23.74 years, including 266 passenger and seven cargo
Of these, only 163 are operational, according to the Ministry of Roads
and Urban Development. The average age of the airlines’ operational feel
stands at 22.9 years.
Iran Air has signed deals with Boeing, Airbus and ATR to purchase 200
new aircraft, which would add 50,000 seats to its fleet. The jets are
set to be delivered in the next 10 years.
Talks are also underway for purchasing new aircraft for other airlines.
This could be a great opportunity for Iranian insurance firms,
especially for IIC, which is reportedly dealing with numerous problems.
Iranian insurers generated a sum of 1.6 trillion rials ($40 million at
the market exchange rate) by selling 946 insurance policies in airplane
category. They paid indemnities worth 210.4 billion rials ($5 million)
to 202 claimants during the last Iranian year (ended March 19, 2016).
The payout ratio of the category stood at 12.8%, marking a 17.3% drop compared with the previous year.
Iran Insurance Company accounted for 47% of generated premiums and 71% of paid indemnities during last year.
The Central Insurance of Iran’s statistics indicate that IIC’s market
share has increased to 53% during the first eight months of the current
Iranian year (ended Nov. 20).
Currently, the airplane category accounts for 0.58% of IIC’s portfolio.
As per the law, passengers and third-party insurance coverage are
mandatory for airliners, whereas they are free to purchase other types
The Fifth Five-Year National Economic Development Plan (2011-15)
stipulated that Iran should become the first regional hub in cargo
transportation and the second in passenger transport.
IIC is the only Iranian company with 12 overseas branches, including
branches in the UAE, the UK and Oman. The firm now has the opportunity
to come up with a long-term plan and expand its operation in airplane
category, as a sustainable and potentially profitable source of income.