Jordan's Parliament Debates Insurance Contract Law Amendments

Jordan's parliament continued its debate on proposed amendments to the insurance contract law during a legislative session on Wednesday.

During a session on Monday, lawmakers approved 12 articles out of the 101 articles that make up the draft law, as submitted by the government.

The proposed law seeks to bolster transparency and fairness in the relationship between insurance companies and citizens. It aims to safeguard the rights of policyholders by obligating insurance companies to respond to requests within just 10 days and preventing the imposition of unfair or ambiguous conditions.

Furthermore, it contributes to stimulating investment and supporting the national economy by providing a sophisticated legislative environment. It also addresses negative practices such as the purchase of severely damaged vehicles (“krokas”) by criminalizing them legally and imposing clear penalties.

The draft law is designed to enhance confidence in the insurance sector and achieve the principle of fair compensation, protecting the rights of all parties. It ensures that contract terms are clear and simple and are interpreted in favor of the insured in case of any ambiguity.

The proposed legislation defines the obligations of both parties to the insurance contract and clarifies the legal provisions for its termination for justified reasons before its expiry, as well as the resulting obligations on the insurer and the insured. It also sets the statute of limitations for hearing claims arising from the insurance contract and the cases in which this statute is interrupted, as well as the date on which the right arises for the insurer and third parties to file lawsuits.