CHAPTER 2

ESTABLISHMENT

 

ARTICLE  2. Insurance and reinsurance operations in Free Zones shall take place through institutions that, based on the proposal of the Authority and under the provisions of these regulations, obtain permission from Bimeh Markazi Iran and are registered in one of the following forms:

1.      Iranian joint stock or cooperative insurance companies with real and/or legal Iranian and/or foreign shareholders with registered shares.

2.      Insurance agency and/or broking institution;

Note 1. Subject to provisions of these regulations and registration in the Zone, insurance institutions are permitted to establish branches.

Note 2.  Subject to rules to be approved by the High Council of Insurance, granting insurance agency to real persons is permitted.

Note 3. Operation of branches and agencies of insurance institutions, operating in other parts of the country, is allowed in each Free Zone, under the provisions of the Establishment Act of Bimeh Markazi Iran and Insurance Operations, within the framework of these regulations and other rules governing the said institutions.

 

ARTICLE 3.  Institutions authorised to operate in the Zone, within the framework of these regulations, are not permitted to provide insurance for persons residing and  risks (subject and matters)located in other parts of the country and transport insurance for goods imported to other parts of the country, the purchase contract of which is concluded or its letter of credit is opened in Iran. Reinsurance transactions are excluded from this Article.

Note 1. Institutions authorized to exclusively operate direct insurance in the Zone are not permitted to accept reinsurance from insurance institutions operating in other parts of the country.

Note 2. Insurance institutions are entitled to insure properties and liabilities (except that of life insurance) of the Special Economic Zones within the provision of these regulations and in compliance with relevant rules and regulations.

Note 3. Issuance of insurance policies by the insurance institutions of the Free Zones for those risks the coverage of which is not offered by Iranian insurance institutions operating in other parts of the country is an exception to this Article. The list of such risks(subjects and matters) permitted to be insured by the insurance institutions shall be prepared and communicated to the Authorities within three months from the date of the approval of these regulations, at the latest.

 

ARTICLE 4.  Minimum capital for insurance institutions, insurance agencies and insurance brokers are as follows:

1.      Direct insurance institutions are to be established with a minimum capital of Rials fifteen billion (15,000,000,000), at least fifty percent (50%) of which must be paid initially;

2.      Mutual insurance institutions are to be established with a minimum capital of Rials two hundred million (200,000,000) at least fifty percent (50%) of which must be paid initially;

3.       Reinsurance institutions are to be established with a minimum capital of Rials eighty - five billion (85,000,000,000) at least fifty percent (50%) of which must be paid initially;

 

4.      Insurance agencies and / or broking institutions are to be established with a minimum capital of Rials three hundred million (300,000,000) at least fifty percent (50%) of which must be paid initially.

Note 1. The amounts indicated  in this Article  may be  adjusted  every two years subject to joint proposal of  the Secretariat of the High Council of Free Zones and Bimeh Markazi Iran  and its approval by the Council of Ministers;

Note 2. Foreign shareholders of the institutions to which these regulations apply must pay their Rial shares in the foreign currencies acceptable to the Central Bank of Iran and/or must produce a foreign currency conversion certificate.

Note 3. The capital funds, subject of this article, must be deposited in one of the banks certified by the Central Bank of the Islamic Republic of Iran and preferably in the banks, which hold branches in the Free Zones.