Vehicle insurance policy compensates for damages resulting from accidents that occur to the insured.
These include six cases in ordinary insurance policies:
· Damages due to collision of the insured object with a fixed or movable object or collision of other objects with the object of insurance.
· Damages due to overturning of the insured vehicle.
· Damages due to crash, of insured parts or products during towing.
· Damages incurred on the object of insurance during salvage and towing.
· Damages incurred on the battery and tires of the insured vehicle in each of the insured risks up to 50% of price of new product.
Usual expenses that the insured pays to save the object of insurance and prevent from increasing of damages and towing the insured object to the nearest repair center, is 20% of the total agreed damage. Meanwhile, two groups of damages that may be incurred on the vehicle object of body insurance policy should not be indemnified based on Article 5 and 6 of the by-law No. 53 of the Supreme Insurance Council general conditions of the body insurance policy. Policyholders are recommended to completely study the general conditions of the body insurance policy and identify the policies so as to prevent later problems in this regard.
To pay the vehicle insurance premium, one can use the payment by installments and without any additional charges. In this way, at least 30% of the insurance premium is received in cash at the time of issuing insurance policy and the rest should be payable within 10 equal installments.
***Obtaining Third Party insurance policy from Bimeh Iran (Iran Insurance Co.)
promises travel in peace of mind and comfort***
Allied perils and complementary risks:
Yet there are other risks that are covered in Auto body insurance policy that are not considered as major risks of the insured under other ordinary insurance policies, the insured can pay a small amount of premium and receive his desired additional policy covers and in this way enjoy the valuable services of Bimeh Iran (Iran Insurance Co.).
The most important types of insurance coverage are:
- Theft in case of vehicle or its parts if the vehicle parts (not the vehicle) are stolen when the vehicle is not moving, this is called minor theft and as we mentioned before, this damage is not compensated under major risks coverage. In this case, policyholder may apply for minor theft coverage for specific parts such as radio, tape recorder, digital player, ring and tire. After survey of the insurance inspector, the mentioned parts should be insured by payment of a fairly low insurance premium. It should be noted that the total value of the parts or accessories that are insured under theft coverage, should not exceed 20% of total sum insured (insured vehicle).
Breakage of glass upon application of the insurer and payment of a low insurance premium, damages due to glass break should be compensated, in addition to major risks such as breakage due to change of temperature and condensation of air inside the vehicle, or hit by stones.
Repair duration coverage if the insured vehicle remains in the repair shop for a while for making repairs and expertise, transportation expenses and damages due to not using the damaged car should be paid by the insurer. This additional coverage should be provided by payment of a negligible insurance premium at the time of issuance of the insurance policy and the policy holder should benefit from his desired insurance services.
It is to be noted that the maximum liability of the insurer for this additional cover is 30 days and the useful stay in the repair center is the period agreed between the policyholder and insurer, approved by the insurer’s technical expert, which will last from the beginning of the repair operations to its completion. But indemnity for the first three days of the repairing days stop should be deducted as franchise.
Price fluctuations regarding the fact that the value of the insured car may increase under market conditions during validity of insurance policy and the insured car is worth more than the insured amount at the beginning of the insurance policy, this coverage may be purchased and obtained an up-to-date indemnity without applying Article 10 of the insurance law. It should be noted that price fluctuations are covered only in minor damages.
Therefore, policyholders and citizens are asked to refer to their insurers for increasing their capitals in cases where during the validity of the vehicle insurance policy, the value of their vehicles increases.
Natural disasters upon request of the policyholder and payment of a moderate amount of insurance premium, risks due to flood, earthquake, etc. could be covered under Auto body insurance.
Risks due to chemical materials, damages due to acid, paint and chemical materials on the vehicle body should be compensated for at the request of the policyholder at a slight premium, as additional cover.
***Complementary insurance coverage policies of Bimeh Iran
(Iran Insurance Co.) represents security and assurance to the owners of vehicles***
The insured item must be appraised for value at day price, so that the insurer will receive a real insurance premium and be able to compensate for minor and general damages in the best possible way. It is recommended that the insurer’s expert initially inspects the vehicle and its accessories so as to insure it at day price.
At the time of issuing insurance policy it is necessary that the insurer’s approval expert initially inspects and prepares a technical expertise report and the policyholder should be bound to allow the expert to inspect his vehicle. Of course arrangements have been made in this regard, so as to prevent any problems for the insured. For example, the initial inspection is carried out in the place of residence or work activity of the policyholder.
It is necessary to avoid any initial compromise in cases where the source of damage and the responsible (guilty party) person of accident is one other than the policyholder, so that the insurer can refer to the responsible persons after payment of the damage.
It is obvious that if the policyholder compromises with the guilty party, he should have no recourse to claim later.
In Auto body insurance damage, a portion of total indemnity should be paid by the policyholder as franchise. This amount is 10% in accident and fire and 20% in minor and general theft. (Rates are liable to change at the discretion of the Company)
If a third party is recognized as the source of damage in accident and it is possible to claim the damage, the franchise should be reduced to half of its amount.
In case of theft of the object of insurance, the case should be notified to police immediately, and then to notify the insurer after collection and presentation of required documents.
No-indemnity discounts in Auto insurance policies:
In case the insured has no record of obtaining indemnity with one or more years after purchasing the Auto insurance policy, lucrative no-indemnity discounts should be granted to him on insurance premiums. These discounts are subject to change but the following may be noted as example:
- One year without claim 25%
- Two-year without claim 35%
- Three-year without claim 45%
- Four-year and more without claim 60%
Documents required for obtaining body indemnity:
- Completing and approving body insurance damage.
- Police report.
- Survey or expertise report of the technical insurance officer and police report (person in charge of investigating the accident).
- Identity documents of the person responsible person responsible for the accident as well as those of the innocent party.
- Police report to the court (for damages in which there is a party responsible for the accident).
- Certificate of court proof and verdict (for damages in which a party is responsible for the accident).
- Copy of driver’s license of both parties in the accident.
- Original and copy of the Auto body insurance policy.
- Invoice of changed auto spare parts.
- Invoice of salvage and towage expenses.
- Fire-fighting report for fire damages.
- Theft report to information (police) department for theft damages.
- Certificate of search for the stolen automobile from department of information.
- Copy of ownership documents of the insured vehicle.
- Minutes of finding the vehicle from the discovered stolen vehicles authorities.
Note: The following are the duties of the policyholder:
- Observation of Utmost Good Faith.
- Payment of insurance premium.
- Declaring if risk increases.
- Notifying damage.
- No false statements.
- Preventing accidents and aggravation of damage.
- Prevent displacement or repair of vehicle.
- To transfer the policyholder’s rights to insurer (subrogation).
Each of the above duties has been explained in the general conditions attached to the Automobile insurance policy of Bimeh Iran (Iran Insurance Co.).
(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 recommended to contact the Company for refreshed and current facts and figures)