Third Party insurance for automobiles

Generally, financial damages covered under No. I mentioned above include all physical damages that are incurred on third parties in auto accidents, as a result of civil liability of owners and drivers of land motor vehicles. In case the vehicle owners purchase the mentioned insurance policy, insurance companies may pay up to the liabilities mentioned in the third party insurance policies to compensate the mentioned damages. Therefore, all policyholders are strongly recommended to try to select their liabilities under the insurance policies in such a way that they avoid concern and worries at the time of probable accidents and enjoy desired insurance services.
Physical damages mentioned above under Item No. I include all physical damages – death, body defects, permanent, total or partial disability and medical expenses that are imposed following driving accidents. These damages should be compensated according to deeds and documents of damage files and verdicts issued by the judicial authorities up to the ceiling of purchased liabilities mentioned in the third party policies.
Accidents may happen at any moment. Everyone can receive adequate insurance coverage from Bimeh Iran (Iran Insurance Co.) so as not to worry at the time of accidents.
Of course it should be noted that physical damages should be compensated for according to the verdicts of the judicial authorities up to the limits of liabilities mentioned in the policies. The rate of Blood money (diyah in Persian) should be notified proportionate to the country’s inflation rate and annual notification of Judicial Supreme Council. This increase (in blood money) has been continuing each year and the death rate for full blood of a Muslim man has been determined and notified subject to change as mentioned above. Even if the damage of the mentioned blood money is considered for non-death cases, these figures are relatively more than the stipulated figures. Therefore, it is strongly recommended that the citizens and the policyholders purchase a surplus physical damage liability, according to the latest tables of liabilities, and their own probable capacities or requirements in order to make the optimum use of insurance services of this company.

Important Notes:
  1. The responsible person in an accident should have selected the type of Blood money. For example, the lowest premium for the type of Blood money is paid for camel being a victim.
  2. If the accident and death occur in the prohibited months (including the months of Rajab, Zighadeh, Zihajeh and Muharram), one third should be added to death blood money. For this reason, purchasing insurance policy with physical coverage in other months may not be sufficient to compensate for damages. So the policyholders are recommended to be prudent in purchasing extra liability cover up to the full blood money in the prohibited months or even more.
  3. Each third party vehicle insurance cards has 4 claim coupons. At the time of accidents, the police officer takes one of these coupons and attaches it to the relevant accident report to the driver’s insurance damage unit and records it in the relevant claim file. In case any coupon is used, granting of no-claim discount is denied in the following year.
  4. Following Para B, Article 1 of the By-law concerning income source of physical damages fund approved on May 2th, 1969, a proportional amount should be added to the insurance premium of vehicles that have no record of continuous insurance up to the date of applying for and issuance of insurance policy, as fine on delaying extension of the validity of the insurance cover.
    This amount will be charged to the insurance premium of the latest owner of the vehicle.
    Furthermore, an increase of the blood money rate, medical expenses and the likes, annual increase of the wage rates of vehicle repair centers and increase in the price of spare parts of vehicles will consequently lead to the increase of the insurance premium rate, and subsequently increase in the liabilities (physical and financial). The vehicle owners are recommended to insure their interests under third party insurance cover in due time in order to avoid the fines imposed by the insurance company.
    If the insurance record shows using two indemnity coupons, 20% fine should be imposed as multiple indemnities at the time of extension of the insurance policy in the following year.
    Considering the use of a third coupon will lead to a 40% fine and all 4 coupons, 60% fine on multiple indemnities.
  5. Granting of discounts for no-claim in third party insurance policies and surplus liabilities policies should be considered by the Company based on the insurance record table.
    If the parties to an accident are not interested in receiving instant indemnity and referring to the court, they may present their forensic medicine and police documents, refering to the insurer and obtain up to 85% of the indemnity on agreement.
Required Documents and Conditions for Investigation to Indemnity Files of Third Party
  • Third Party Material Damage
    1. Loss adjuster’s report on the existence of a valid third party vehicle insurance policy.
    2. Loss adjustment documents of the parties involved in the accident relating to non-compromised settlement dispute.
    3. Other complementary reports such as police report from accident area, official report of the justice administration, verdict of courts regarding non-compromised settlement situation.
    4. Certified copy of drivers’ license at the time of accident (responsible and innocent driver).
    5. Certified copy of third party insurance policy of the responsible and innocent party to the accident.
    6. Certified copy of vehicle ownership registration book of the innocent driver.
    7. Invoice of replaced parts.
    8. Tow charge invoice.
    9. Third party insurance policy coupon of the responsible driver of accident.
    10. It is also necessary to inspect auto insurance policy of responsible party and the innocent one in unreported damages.
  • Third Party Physical Injuries and Death
    1. The initial minutes of the Police station.
    2. Loss Inspection Report of technical officer (claims inspector), opinion of official justice administration expert/inspector.
    3. Police report to the court and interrogation papers.
    4. Opinions of forensic medical experts regarding injured and disabled persons.
    5. Corpse inspection report.
    6. Burial permission.
    7. Death Certificate summary.
    8. Hospital expenses invoice incurred for injured and disabled persons.
    9. Verdict issued by court of first instance and in case of objection of parties, verdict of appeals court or the latest verdict of the authorities that investigate the case, such as the verdict of the supreme council.
    10. Other relevant reports.
    11. Certified copy of third party insurance policy of the responsible party.
    12. Certified copy of driver’s license of the responsible party.
    13. Coupon of third party insurance policy of responsible party.
    14. Probate for payment of share of each of the heirs.
Note to Policyholders

The insured is required to select one of the following at the time of purchasing an insurance policy and complete a suggestion form of issuing third party insurance policies:

  • Option A. – Legal third party liabilities
    1. Injuries amount limit.
    2. Material damage amount limit.

    Policyholder should compensate for financial and physical damages exceeding the liabilities mentioned in these insurance policies.

  • Option B. – Legal liabilities together with available tables in the office of the issuance of insurance policy
    Policyholder should compensate for financial and physical damages exceeding the liabilities mentioned in the insurance policies.
    It should be noted that insurance premium of passenger liabilities is added according to the issuance office’s proposed amounts, according to the request of the policyholder. If the policyholder applies for more financial and physical liabilities, the relevant premiums should be calculated proportionately to the amount of liabilities.

(All amounts, rates and other chargeable or deductions, such as premiums, liabilities, rates, franchise amounts or time-limits, or other terms and conditions mentioned in the above article or stipulated in the policy or underwriting documents are subject to change at any time at the discretion of Bimeh Iran (Iran Insurance Co.) and the reader is advised to contact the Company for refreshed and current facts and figures)