The basis for the limitation of liability for financial losses from driving accidents (Paragraph 3 of articles 8 of the Third Compulsory Insurance Act of 1395)

In Iranian legal system, Compensation for damages is based on the principle of full compensation. It seems that in Islamic jurisprudential the principle is derived from some rules such as “no prejudice rule” (la zarar), wasting rule (etlaaf) and etc. The legislator necessarily excludes these principles to apply in the case of damages to precious automobiles. (Paragraph 3 of article 8 of the Third Party Compulsory Insurance 2016). The paragraph expressly excludes the liability of the loser to the maximum amount of damages caused to a normal and usual automobiles. In This paper we analyze the Islamic and Iranian law and consider the basis of that exclusion. Analyzing the consideration of the economic situation of the parties, the rule of accepting possible risk (eqdaam) and the principle of the maintenance of the Islamic society order (hefze nezaam), we can justifay the basis of such limitation of liability and the lack of compensation for these cars over the particular ceiling. We believed that the principle of maintaining the Islamic society order (hefze nezaam) and the principle of accepting possible risk (eqdaam) can justify the mentioned limitation.