Aviation and Marine Insurance
Maritime and aviation activities involve complex operations, high-value assets, and significant legal and financial risks. Vessels and aircraft are exposed to a wide range of potential hazards, from physical damage and operational accidents to third-party liabilities and environmental responsibilities. As a result, specialized insurance coverage is essential to ensure financial stability, regulatory compliance, and continuity of operations in these sectors.
In Iran, ship and aircraft insurance policies are provided by domestic insurance companies in accordance with national regulations and in alignment with internationally recognized insurance standards. These policies are designed to address the specific risks associated with marine and aviation operations while taking into account local legal frameworks, operational conditions, and reinsurance limitations. Through structured coverage and clearly defined terms, Iranian insurers offer risk management solutions that support commercial transport, logistics, energy, and aviation industries across the country.
Marine (Ship) Insurance in Iran
Marine insurance is one of the oldest and most important lines of insurance in Iran, especially due to the country’s role in regional trade, oil transport, and maritime logistics. Iranian insurance companies provide marine insurance in accordance with Iran Insurance Law, Iranian Maritime Code, and widely accepted international clauses such as Institute Cargo Clauses (A, B, C) and Institute Hull Clauses, adapted to local conditions.
1. Hull & Machinery Insurance (H&M)
This policy covers physical damage to the ship itself, including the hull, machinery, and onboard equipment.
Typical covered risks include:
Collision, grounding, sinking, capsizing
Fire and explosion
Heavy weather and sea perils
Mechanical breakdown resulting from insured risks
Coverage is usually provided for:
Commercial vessels
Oil tankers and bulk carriers
Fishing vessels
Tugboats and service vessels
The sum insured is generally based on the agreed value of the vessel.
2. Marine Cargo Insurance
Cargo insurance covers goods transported by sea, inland waterways, or multimodal transport (sea–road–rail combinations).
Iranian insurers commonly offer:
Institute Cargo Clause A (all risks, with exclusions)
Clause B (named risks)
Clause C (basic risks only)
Covered risks may include:
Loss or damage during transit
Fire, explosion, collision
Jettison and general average
Theft and non-delivery (subject to clause selection)
Cargo insurance is widely used for:
Imports and exports
Domestic maritime transport
Project and bulk cargo
3. Protection & Indemnity (P&I) – Limited Scope
Due to international sanctions and reinsurance constraints, Iranian insurers usually offer limited P&I coverage, often including:
Third-party bodily injury
Damage to docks, ports, and fixed objects
Pollution liability (within domestic limits)
Crew injury and death (as required by Iranian labor law)
Coverage limits may be capped compared to international P&I Clubs.
4. War, Strike, and Additional Covers
Optional extensions may include:
War and war-like risks (subject to approval)
Strikes, riots, and civil commotion
Increased value insurance
Aviation (Aircraft) Insurance in Iran
Aviation insurance in Iran is offered in compliance with Iran Civil Aviation Organization (CAO) regulations and aligned with ICAO standards, adapted to domestic operational realities.
1. Aircraft Hull Insurance
This policy covers physical loss or damage to the aircraft.
Coverage includes:
Damage during flight
Damage during taxiing
Damage while parked on the ground
Insurable aircraft types:
Commercial passenger aircraft
Cargo aircraft
Helicopters
Training and private aircraft
The insured value is based on the market or agreed value of the aircraft.
2. Aircraft Liability Insurance
Liability insurance is a core component of aviation coverage and is typically mandatory.
This policy covers:
Passenger bodily injury or death
Third-party bodily injury
Third-party property damage
Coverage limits are set in accordance with:
Iranian aviation regulations
Aircraft type and capacity
3. Crew Insurance
Iranian insurers may provide coverage for:
Flight crew and cabin crew
Accidental death or disability
Medical expenses resulting from aviation accidents
This coverage often complements employer liability requirements.
4. Ground Risks Insurance
Covers damage occurring while the aircraft is on the ground, including:
Hangar fire
Collision during towing
Ground handling accidents
5. War and Terrorism Risks (Limited)
Due to geopolitical conditions, war and terrorism risks are usually:
Offered with strict limitations
Subject to special approval
Excluded or capped in some cases