• time : 14:31:0
  • Date : Wed Apr 28, 2021
  • news code : 4741
The Role of Insurance in Transportation
Prepared by Auto Insurance Taskforce on the Occasion of April 27: The Day of Transportation Safety
Transportation is one of the most significant infrastructures of any economy that accelerates economic development, facilitates trades, and fosters economic and social development. A stable development in transportation sector through various methods and its appropriate exploitation as a prerequisite for the development of other sectors will increase greater national security, national wealth, and per capita income. Today, given the substantial development, transportation is provided in a large network by air, land (rail and road), and water. Transportation is generally divided into two major categories: passenger and cargo. Where both of these modes hold their own particular significance, the role of safety in passenger transportation is more important due to the value and key role of human beings.

Humans are the most significant factor in transportation. Among various forms of transportation, ‘land roads’ due to the car features, traffic routes (including roads, highways, freeways, etc.), and remarkable effect of human forces in driving vehicles hold much more importance.

According to statistics, by the end of March 20, 2019, the transformation roads in Iran were as follows: Freeways: 2401 km; Highways: 18122 km; Main roads: 25866; Side roads: 42926; Rural asphalt roads: 110318; and Rural gravel roads: 22162.

On May 2010, United Nations General Assembly issued resolution 64/255 as “The Decade of Action for Road Safety 2011-2020” with a goal to stabilize and then reduce the forecast level of road traffic fatalities. Accordingly and due to the significance of transportation safety, a day was labeled as the Transformation Safety Day on April 27 in Iran.

Due to the great efforts taken, the road accidents have been reduced in Iran, however, it is still far from the optimal state. In the past decade, the road fatalities have been reduced from 28000 to about 16000 but it still falls short of the global average. The fact that the number of fatalities during the past decade has been about 300 thousands – approximating the war casualties – is discouraging. Knowing that such fatalities are traumatic for humanity, families, and the society and that there is no way to compensate for such losses in human level, is more disheartening. At the same time, the economic losses incurred are sometimes immense, as well.

The substantial increase in vehicles to about 36 million (cars and motorcycles), new ways of transportation (ride-hailing, commercial uses of motorcycles), increased urbanization, and growing passenger and commodity movement have increased the risks, as well.

Insurance is a mechanism that will ensure transportation safety in two ways. First, it can increase premiums for those reckless drivers that violate driving regulations. This is, however, supported by the TPL laws recently passed and is currently enforceable. Second, by compensating for the losses, insurance will bring security to the transportation activities and will tackle the problems complicated due to the uncertainties and risks for this significant economic sector.

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