Warning letter to insurance CEOs: Refrain from obtaining consent outside the rules

 Jafar Hosseini, the Inspector General of Banks and Insurance Affairs of the General Inspection Organization of the country, in a letter to the CEOs of the insurance companies and the Bodily Injury Fund, emphasized the need for the proper implementation of the rules and regulations, especially Article (11) of the Compulsory Insurance Law.

In this letter, which is addressed to the CEOs of 37 insurance companies, it is stated: In accordance with Article (11) of the Compulsory Insurance Law for Damages Caused to a Third Party as a Result of Accidents Caused by Vehicles, the inclusion of any condition in the insurance policy that provides benefits for the insured or the victim less than the benefits stipulated in the Compulsory Insurance Law, or the inclusion of the condition of suspension of the insurer's obligations in the contract in any way, is null and void. The invalidity of the condition does not invalidate the insurance policy. Also, obtaining any consent from the victim by the insurer and the fund stating that they agree to pay less than the benefits stipulated in this law is prohibited and such consent is ineffective.

He continued: "Also, in accordance with Article (23) of Regulation No. (71), "obtaining a consent letter by insurance companies for the payment of damages will be based solely on the sample text of the consent letter that will be prepared and communicated by the Central Insurance."