Allocation of 2,500 billion for building accident insurance
According to the financial news report, quoted by the Ministry of Economic Affairs and Finance, the field visit of the Minister of Economy to the flooded areas of Imamzadeh Dawood (AS) last week and his insistence on the allocation of funds for the “Building Natural Accidents Insurance Fund” is the beginning of a new period of activity. The industry is insurance and compensation for damages caused by natural disasters.
In this visit, “Syed Ehsan Khandozi” asked the Planning and Budget Organization to speed up the allocation of the budget of this fund so that in the next possible incidents, it would be possible to compensate for the damage of houses faster.
As a result of this action and follow-ups, the Cabinet approved last week that 2,500 billion Tomans should be considered for the general insurance fund for natural building accidents.
The creation of a general natural disaster insurance fund since 2003, with the aim of compensating financial losses caused by natural disasters with the participation of the government and the activities of insurance companies, was placed on the agenda of the country’s insurance industry, and finally, in December 2019, the law on the establishment of a natural disaster insurance fund was approved. The Islamic Council arrived.
According to this law, all residential buildings with legal branching of electricity in areas where there is a possibility of natural disasters such as earthquakes, floods, storms, lightning, heavy snow, landslides, mountain falls and tsunamis are supposed to be covered by “basic accident insurance”. be placed naturally in the building.
The government board approved the executive regulations of this law on December 24 of last year, and based on it, the legal duties related to the bodily injury fund were determined.
Details of the share of the insured and the government in the natural accident insurance of the building
This executive regulation also determined the insurer’s share and the government’s share of the basic insurance premium for residential units for the first year to the tenth year and after that, in the first year, the insurer’s share is 10%, the government’s share is 90%, and in the second year, the insurer’s share 15% and the government’s share is set at 85%, and after that, 10% will be added to the policyholder’s share and 10% will be reduced from the government’s share until the tenth year, when the policyholder’s share will be 90% and the government’s share will be 10%. This amount will continue from the 10th year onwards.
According to this law, insurance premiums for policyholders are determined annually in the budget law and are collected from the owners by being included in the electricity bills of the buildings, and the Ministry of Energy and the electricity distribution companies are obliged to pay 100% of the basic insurance premium for the share of the policyholders of residential units while including it in the bills. The electricity of each residential unit should be deposited into the treasury account of the whole country immediately after receiving it.
How to pay damages
The Fund is obliged to send an expert to the scene of the accident after the occurrence of natural disasters resulting in financial damage and to determine the amount of financial damage caused to each residential unit; The time to fulfill obligations and pay damages is set two weeks after the accident.
If a residential unit has supplementary natural disaster insurance coverage from one of the insurance companies, financial losses up to the basic insurance obligations will be paid by the fund, compensation and the difference from the supplementary insurance coverage.
Last week, the government board voted in favor of allocating 2,500 billion tomans for the general insurance fund for natural building accidents, so that based on what the Minister of Economy says, with the contracts concluded with insurance companies and the allocation of these resources in the future, a strong fund to compensate There are possible losses of people in natural disasters.
This decision of the government has been taken in line with finding a fundamental solution to compensate for the loss of residential houses in natural disasters, which imposes a huge cost on the people of flooded areas and other natural disasters.