In today’s world, where the economic growth and development of each country determines its international standing, countries are seeking to improve their development indicators in order to play a role in the international affairs. The insurance industry is one of the most important economic institutions in societies, even supporting the activities of other institutions. Therefore, insurance industry and its influence in society are recognized as one of the indicators of development in the world.

In other words, the insurance industry plays a role in economic development by collecting premiums, creating security and confidence for service and production activities in society, it facilitates the process of construction, progress, and advancement.

It can be said with certainty that if a country’s economy does not rely on insurance and the protection it provides, it will be exposed to great and irreparable risks. The concept of insurance has had a long history in Iran and its starting point can trace back to different times, but when did insurance, as we understand it today, begin in Iran?

History of Insurance Industry in Iran

Insurance activity in Iran began in 1890 after negotiations between the Iranian government and the Russian embassy, ​​which resulted in the granting of an exclusive privilege in the field of insurance and transportation to a Russian citizen, Lazar Solomonovich Poliakov, for 75 years. Lazar had a three-year deadline to start operating, and due to his failure to establish the desired insurance company, his license was revoked. 

In 1910, after Lazer, two other Russian companies named “Nadezhda” and “Caucasus Mercury” attempted to establish an insurance agency in Iran. After these two agencies, many other foreign companies, including Ingosstrakh, British Alliance, Eagle Star, British Yorkshire, Royal, Victoria, National Swiss, Phoenix, Al-Ittihad Al-Watani, etc. started to work in Iran.

Bimeh Iran, the first Iranian insurance company

Iran began professional activity in the field of insurance in 1931, especially after laws and regulations for company registration in Iran were passed. Also, the expansion of foreign insurance companies’ activities and the idea proposed by two Iranian named “Dr. Alexander Aghayan” and “Ali Akbar Davar” made the country’s officials aware of the necessity of establishing an Iranian insurance company. As a result, on September 16, 1935, the first Iranian Insurance Joint Stock Company named “Bimeh Iran” was established with a capital of 20 million rials. The official activities of “Bimeh Iran” began in mid-November of that year.

After the establishment of the Bimeh Iran, this company faced numerous challenges in competition with foreign companies. In 1937, to formalize the activities of Bimeh Iran, the insurance law was approved by the National Assembly and according to this law, insurance of government organizations was transferred to Bimeh Iran.

In 1952, in order to support domestic insurance companies, the Mossadegh government passed laws that greatly restricted the activities of foreign companies and led to the closure of them.

History of private insurance companies in Iran

In 1950, the first private insurance company in Iran, “Bimeh Sharq” was established. Between 1950 and 1964, eight other private companies were licensed to operate in the insurance industry.

The increase in the number and activity of domestic insurance companies paved the way for the establishment of “the Higher Institute of Insurance” or in Persian “Madreseye Aliye Bimeh” in 1960, where students were trained and could get a diploma after finishing the four-year program. All of these efforts ultimately led to the approval of the law on the establishment of Iran’s central insurance or “Bimeh Markazi” in 1971.

There are now many insurance companies in Iran and each of these has branches and agencies that operate in different ways depending on the volume of the company’s activities. To sum up, insurance companies in Iran are divided into three groups:

1. Governmental insurance: including Iran, Asia, Alborz, Dena, etc.
2. Private insurance: including Moallem, Parsian, Karafarin, Sina, Saman, Razi, Tose’e, Dey, Novin, Mellat, Pasargad, Mihan, etc.
3. Free trade-industrial zone insurance: including Amin, Hafez, Omid, Iran Omid, etc.

Different Types of Insurance in Iran

There are many different types of insurance in Iran, each with its own conditions and coverage. Let’s take a look at the most common ones.

• Third-party insurance:

Third-party insurance is a form of vehicle insurance in Iran, which is mandatory. In other words, all car and motorcycle owners are legally required to have it. This insurance covers the policyholder’s legal liability for bodily injury or property damage caused to a third party in a traffic accident where the policyholder is at fault.

For more information about third-party insurance, check below link:
https://bimebazar.com/third-party-insurance/

Tip: By entering the license plate number on the Sanhab website, you can instantly inquire about your third-party car insurance and view information such as the type of vehicle, car type, brand, year of manufacture, as well as all car insurance records such as the start date, end date, third-party and driver discount percentage.

By clicking https://bimebazar.com/sanhabInquiry/ page, you can inquire on the Sanhab Website right away.

• Car body Insurance:

In contrast to the third-party insurance, car body insurance is an optional form of car insurance in Iran, covering risks such as theft, fire, explosion, lightning, accidents, and any minor or total damage to the insured vehicle at the time of an accident.

For more information about car body insurance, check below link:

https://bimebazar.com/car-body-insurance/

• Health Insurance:

Health insurance is one of the most important types of insurances in Iran. This insurance covers routine and emergency medical care costs, often with the option to add vision and dental services separately. If you don’t have health insurance, you may end up paying the expensive medical bills out of pocket.

• Life Insurance:

Life insurance policies are designed to provide a lump sum payment at the time of the insured’s death. There are two primary types of life insurance: 

• Term life insurance: provides financial security for a set period, benefiting children and dependents.
• Permanent life insurance: offers more extensive coverage, ideal for estate planning and leaving an inheritance for your loved-ones. 
• Travel Insurance:

Travel insurance is designed to safeguard travelers against unforeseen events and financial losses during a trip, such as trip cancellations or delays, emergency health care expenses, damaged baggage, injuries and evacuations, rental car and home incidents.

• Liability Insurance:

In Iran, as in many other parts of the world, liability insurance plays a significant role in protecting individuals and businesses against financial losses when they are held legally responsible for injury or damage caused to any other party, whether a person, an organization, or the state. 

Accident Insurance:

Accident insurance in Iran offers financial support to individuals and their families in the event of an accident that results in bodily injury, disability, or death. This policy is structured to supplement other forms of insurance, such as health insurance and life insurance, by offering specific accident-related coverage.

In summary, the insurance industry in Iran is characterized by governmental, private and free trade-industrial zone insurance companies offering various types of coverage, some of which were mentioned in this article. Before making any decision about your coverage, we suggest reaching out to insurance specialists for advice tailored to you and your family’s needs. Bime Bazar is one of the pioneer insurance companies in Iran, with a team of experts ready to assist customers. On the Bime Bazar website, you can research insurance options, compare plans and coverage, and buy your selected insurance online.