State resolution regarding determining the minimum capital for non-governmental insurance institutes
Nouraei & M. Mostafavi Law Offices – July 31, 2024- Tehran- According to Official Gazette number 23101 dated 30 TIR 1403 (July 20, 2024), the Council of Ministers passed Resolution No, H62752T/62515 dated 18/4/1403 (July 8, 2024), based on Clause 3 of establishing a non-governmental insurance institutes of 1380 (2001), concerning the minimum capital for non-governmental insurance institutes as follows:
‘’1-The minimum capital of Iranian insurance institutes subject to Article (36) of the Law on Establishment of Central Insurance of Iran and Insurance Operations approved in 1350 (1971) for non-governmental insurance institutes is determined as described in the following table.
2- In addition to the minimum capital amount listed in the table of paragraph (1) of this Resolution, the insurance institute is required to place the deposit of the latter part of Article (36) of the Law on the Establishment of Central Insurance of Iran and Insurance Operations in the manner approved by the High Council of Insurance.
3- Insurance instituttes that have already been established and whose capital is less than the figures stated in this Resolution are required to adjust their capital to the provisions of this Resolution within two years from the date of notification of the Resolution, provided that at least fifty percent (50%) of the capital increase be carried out in the first year and at least fifty percent (50%) of it be provided in cash.
4-The Ministry of Economic Affairs and Finance is obliged to submit to the Council of Ministers its recommendation every two years to increase the minimum capital subject to this Resolution in accordance with inflation.
5-The Resolution No. H58252T/19757 dated 26/2/1400 is cancelled.’’
The mentioned table contains the following items:
1- Individual Insurance
- A) In life & pension insurance, the minimum base capital is 3000 billion Rials.
- b) the minimum base capital of accident-treatment insurance is 3000 billion Rials.
- c) In the fields of life insurance, pensions, and accident treatment, the minimum capital required for issuing an activity license separately for each is 3000 billion Rials.
- d) In the fields of life, pension, and accident-treatment insurance, the minimum capital required to establish or continue the activity is 9000 billion Rials.
2-Property and liability insurance
- a) In the accident, health, liability, vehicle (third party – driver – car body accidents), and property insurances (other than vehicle and liability), the minimum base capital is 3000 billion Rials.
- b) In accident insurance, the minimum capital required to issue an activity license is 1000 billion Rials.
- c) In medical insurance, the minimum capital required to issue an activity license is 2000 billion Rials.
- d) In liability insurance, the minimum capital required to issue an activity license is 1000 billion Rials.
- e) In vehicle insurance (third party – driver accident – car body), the minimum capital required for issuing an activity license is 2000 billion Rials.
- f) In property insurance (other than car and liability), the minimum capital required for issuing an activity license is 2000 billion Rials.
- g) In the fields of accidents, medical treatment, liability, car (third party—driver accident—car body), and property insurance (other than car and liability), the total minimum capital for establishing or continuing the activity is 11,000 billion Rials.
3- Individuals, property, and liability insurance
- a) In all insurance fields, the minimum base capital is 3000 billion Rials.
- b) In all insurance fields, the minimum capital required to issue an activity license is 11,000 billion Rials.
- c) In all insurance fields, the total minimum capital for establishing or continuing activity is 14,000 billion Rials.
4- In reinsurance institutes, the minimum base capital is 3,000 billion Rials, the minimum capital required for issuing an activity license is 12,000 billion Rials, and the total minimum capital for establishing or continuing activity is 15,000 billion Rials.
(Re-publication and usage wholly or partially allowed upon naming the source J. Nouraei & M. Mostafavi Law Offices).
