The basic evolutions of the liability of legal entities in the compulsory third party insurance law approved in 2016 with a review of judicial practice

The purpose and necessity of conducting research is to examine the difference in the basis of responsibility of legal entities, including the insurer and the bodily injury fund, in terms of the contract and the legality of the full compensation payment by natural persons including the driver who caused the accident and the owner of the vehicle.

The research methodology is based on the study of jurisprudence and legal sources, while adapting to the judicial procedure analysis in the library method. This research has been completed in an analytical-descriptive and practical way to explain the basis of liability of legal entities included in the compulsory insurance law.

From a basic and philosophical point of view, in the new mandatory insurance law approved in 2016, compensation for losses caused to third parties through insurance has been approved. Among all the different theories, the group guarantee theory is the best basis that can be compatible with the philosophy of the aforementioned law.

In Iranian civil law, fault is accepted as the general basis of civil liability. Liability without fault is also an exception to the mentioned rule. However, with the approval of the Islamic Penal Law approved in 2012, and according to Article 528 of that general rule, the liability resulting from traffic accidents changed from fault to danger. In the new compulsory insurance law approved in 2016, cases such as the insurance company, the bodily damage insurance fund, may be identified as responsible for compensating the financial and physical damages to the injured persons due to vehicle accidents. With the description that the basis of liability of the insurance company is based on contractual liability and in compliance with the mandatory rules of the Compulsory Insurance Law approved in 2016, and the basis of the liability of the fund is also the decree of the legislator.