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Liability Risk and Insurance

Accidents and premiums rise in Iran

There are only 5mn cars on Iranian roads but last year’s death rate rose 10% to 17,000. Quoting traffic expert Mahmoud al-Kateb, the newspaper Entekhab reported their estimated cost as US$2bn a year. State insurers recently raised motor premium rates by 120%. The high accident and death rate has been blamed on the country’s old vehicle fleet (mostly locally made Paykans based on the 1960s Hillman Hunter), bad roads and disregard for traffic rules.

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