Incentives Boost Motorcycle Insurance

EghtesadOnline: A government scheme, which aims to promote insurance specifically among motorcyclists, is gathering pace as thousands of insurance policies were sold in only a month, the director of Personal Injury Indemnity Fund said.

News ID: ۷۷۷۹۱۱

25 July 2017

“During [the Iranian month of] Tir (June 22-July 22) alone, a total of 180,000 personal auto policies related to motorcyclists were sold, which is good news,” Ali Jabbari was also quoted as saying by Mehr News Agency.

These policies were sold as part of the second phase of incentives that waive the penalties for motorcyclists without insurance, which was launched from June 22 and will continue until the end of summer (Sept. 22).

As the director of the fund outlines, the first phase that began from the beginning of the last month of the previous fiscal year in mid-February and lasted until the end of the year in March saw more than 178,000 PAPs sold, indicating a 150% rise in the total number of policies sold to motorcyclists before that, according to Financial Tribune.

PIIF, whose headquarters is situated in the Ministry of Economic Affairs and Finance, spearheaded the scheme, offering three incentives. In addition to waiving the fines a lack of insurance would entail, the fund offers a rebate in premium rates and flexible installments of small payments that will be provided with the approval of insurance companies.

According to Jabbari, the fund “will also sign an agreement with Bank Melli Iran in the next few days, based on which the lender will offer loans with interest rates lower than usual to motorcyclists equal to the total amount of their policies”.

As the PIIF director outlines, about 7,000 PAPs are being sold to motorcyclists daily as a result of the scheme, which is a far cry from the 1,000 that was being sold before and is especially important considering that in the past decade, an average of 6,000 motorcyclists a year have lost their lives in accidents.

At present, some 11 million motorcycles have been registered and while the scheme is on course to gradually remedy the situation, more than 90% of them remain uninsured.

Jabbari also referred to a recent directive approved by the Cabinet and implemented two days ago, decreeing that any owner without PAP will have their vehicles impounded.

As this also includes motorcycle owners, Jabbari urged them to purchase a policy as soon as possible to be able to enjoy its benefits.