Iranian Insurance Regulation and Social Security Law
This domain tests the legal architecture of Iranian insurance and social insurance: the Insurance Act of 1937 (1316), the 1971 law establishing the Central Insurance of Iran (Bimeh Markazi) and its supervisory powers, the High Council of Insurance, the 2016 compulsory motor third-party liability law, and the Social Security Act of 1975 (1354).
Core rules
- The Central Insurance of Iran supervises insurers, approves tariffs and policy wordings in regulated lines, and enforces technical reserve and solvency rules. The High Council of Insurance is the senior rule-making body; the two are frequently confused.
- Iranian insurers operate as public joint-stock companies; private insurers were re-admitted from around 2001 after the post-1979 nationalisation era.
- Motor third-party liability is compulsory, with a statutory bodily-injury compensation fund covering uninsured and unidentified-vehicle claims.
- Social Security Organisation coverage is compulsory for employees; contributions are typically 7% employee, 20% employer and 3% government (30% total) for old-age, disability and death benefits, subject to wage ceilings and qualifying contribution periods.
Worked example
An employee earns 30,000,000 rials monthly. Employee contribution 7% = 2,100,000; employer 20% = 6,000,000; government 3% = 900,000; total 9,000,000 rials remitted monthly.
Traps
- Attributing rule-making to the Central Insurance of Iran rather than the High Council.
- Believing all insurance remains state-owned; the market has been mixed since 2001.
- Confusing social security pensions with private annuity products.
- Ignoring that motor third-party cover is compulsory and largely tariff-driven.
- Mis-stating the contribution split or applying it above the statutory wage ceiling.