Wed 18 Sep 2019

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IRC in Talk with ISNA: ‘Driver-based TPL Policy Plan in Just Two Years’


In his interview with ISNA News Agency, the Head of IRC pointed to the ongoing work on the initial studies regarding driver-based third party liability (TPL) auto policies and hoped that its enforcement would be within two years.

“Implementation of this plan requires some preliminary studies in order to formulate the relevant by-laws and to have the probable challenges in prospect and find appropriate solutions.” Explaining about the new TPL auto plan, Dr. Korbacheh said.





“IRC runs the studies related to the new auto insurance plan.
However, it is finally the CII (Insurance Supervisory and Regulatory Authority of I.R. Iran) that will make it enforceable; and it is anticipated to be in next two years.”

Iran is Exceptional in Car-Based Auto-Insurance Plan
Referring to the prevalence of driver-based TPL auto insurance around the globe, he added: “Since it is the driver’s behavior that account for TPL auto policies, the countries where car-based TPL policies are still in use are exceptional. In other words, the TPL auto insurance premiums in driver-based plans are not necessarily contingent upon the make and model of the car but on the driver’s behavior and his/her individual characteristics.”

“For instance, in issuing TPL policies based on the latter auto-insurance plans, information such as driving records, qualification, occupation, age, and etc. are taken into account. Let's say, the age is a significant variable, then the driving behavior of a 20-year-old driver is likely to be much riskier than a 50-year-old. Therefore, it is obvious that higher premiums are considered for the former driver’s policy.” Elaborating on driver-based TPL plan, Dr. Korbacheh said.

Some Countries are In Transition from Driver-based Plans

With reference to this fact that the auto insurance plans in some countries are experiencing a transition from driver-based TPL plans, the Head of IRC said: “[In these countries], the new policies are issued based on driver’s usage. In other words, not only their current driver-based plan is persisted but the driver’s usage is considered in issuing auto-insurance policies.”

Dr. Kordbacheh also highlighted the active presence of IRC in the insurance industry and said: “The presence of IRC in the industry is both for receiving reflections from the industry activists and providing academic services to the insurance companies. As a consequence, it is necessary to involve IRC in one way or another in insurance companies, syndicate, and associations. Since such collaborations will make IRC’s studies more practical and will make it more accountable for the needs of the industry and the society at large.”

According to ISNA, the President of CII had already announced the foreseen pilot implementation of driver-based TPL plan for the end of 1398 (mid-March 2020). However, it seems that its implementation requires further more preliminary studies than expected.

In driver-based TPL auto insurance, policies will be issued based on individual driver not the car. Thus, individual characteristics such as age, gender, and driving records are taken into account for such polices.



Time: 2019-09-08
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News Code : 2227
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