VIII) The Act of Establishment of Non Government Insurance Companies (August 2001)
In order to promote and develop insurance industry in the country , increase competition and efficiency in the insurance market , increase public welfare and develop social and economical security , increase the role of insurance in growth and economic development of the country and avoidance of the damage and loss to thesociety , with reference to the latter part of the article 44 of the Constitution and within the framework of the regulations , scope and conditions defined here below , the permission is given to legal local entities to establish non government insurance companies :
1-Policy making in insurance industry , supervision of insurance activities and issuance of license forinsurance activity , will remain the authority of the government of Islamic Republic of Iran , as before , to ensure sovereignty .
2-The regulations relating to procedures of establishment and activity of the local insurancecompanies , such as condition of acquiring license to establish and itscancellation , the procedures to transfer portfolio and merger ,dissolving and bankruptcy of insurance companies , the scope of insurance activity and reinsurance including types ofinsurance transactions , premium and commission related to different branches of insurance , the amount of technical reserves and legal reserves and type of its investment will be subject to the “ Establishment Act of Central Insurance of Iran �of 1971and the “ InsuranceAct� of 1937.
3- The minimum capital of insurance companies , the subject matter of article 36 of the “ Establishment Act of Central Insurance of Iran �of 1971for non government insurance companies will be decided by the Cabinet of Ministers based on the proposal of the Central Insurance of Iran andapproval of the Ministry of Economic Affairs and Finance .
A
