Banned Insurance Company Coming Back

EghtesadOnline: Nonoperational since 2014, Tose’e Insurance Company says it will return to the market in the coming fiscal year that starts in March.

News ID: ۷۸۵۳۹۹

17 February 2020

Speaking to reporters, Saeed Afshari, the company's CEO, said 13 trillion rials ($94 million) has been raised by shareholders in tandem with the company's revival plan.

"Tose'e Insurance will start operations in the coming fiscal year," Risknews quoted him as saying. He did not elaborate, Financial Tribune reported.

The insurance company had often pledged (in written commitments) to refrain from illegal acts and play by the rules. Failing to meet regulatory obligations had led to the ban.

After TIC’s financial statements were audited in 2014, the Supreme Council of Insurance revoked the company’s operating license in February 2015.

Earlier this week in a meeting with Iran Insurance Company's officials, Afshari said more than 90% of policyholders' losses had been compensated adding that the balance would be settled by March.

After its operation permit was nullified by the Supreme Council of Insurance, the council appointed Iran Insurance Company to take over TIC.

A joint workgroup was formed consisting the staff members of both firms to work on compensating the company's losses.

"With the help of Iran Insurance, we managed to repay a huge part of the losses by selling our assets without burdening government resources," Afshari was quoted as saying.

Iran Insurance company said it had started settling the remaining TIC debts, which means paying more than 3.3 trillion rials ($24 million) in losses to 7,150 cases.

Since 2015, the IIC has paid 9.7 trillion rials ($70.8 million) to more than 54,000 clients of TIC.

Last year the TIC sent a request to the Central Insurance company, the industry's regulator, to restore its license. The CII said that would be possible only after the company settles all its debts.