Jordan's Parliament Approves Key Articles of Insurance Contract Law

Alanbatnews -

Jordan's House of Representatives has approved 99 articles of the proposed Insurance Contract Law, a move aimed at modernizing the legislative framework governing the insurance sector.

The approval occurred during a legislative session presided over by Speaker of the House, Mazen Al-Qadi, with members of the government present. The session involved extensive discussions over three consecutive meetings, covering the entirety of the 101 articles of the draft law.

According to parliamentary sources, the House of Representatives is also expected to discuss amendments to the Social Security Law in an initial reading during a session scheduled for Wednesday.

The Insurance Contract Law seeks to bolster transparency and fairness in the relationships between insurance companies and citizens. A key provision of the law mandates that insurance companies respond to claims within a strict 10-day timeframe.

Furthermore, the law aims to protect policyholders by preventing the imposition of ambiguous or unfair terms in insurance contracts, ensuring clarity and equity for consumers.

The legislation is designed to stimulate investment and support the national economy by establishing a sophisticated regulatory environment. It also addresses negative practices, such as the fraudulent purchase of damaged vehicles, by criminalizing such activities and imposing clear penalties.

The Insurance Contract Law is intended to foster greater trust in the insurance sector and ensure fair compensation that protects the rights of all involved parties. It guarantees that contract terms are straightforward and interpreted in favor of the policyholder in cases of ambiguity.

The law also affirms the right to fair compensation, equivalent to the actual loss incurred, up to the agreed-upon insurance amount. It explicitly prohibits the inclusion of vague or unjust terms that could deprive citizens of rightful compensation.

The new law establishes clear rules governing all stages of the insurance process, from application to contract execution. It emphasizes the importance of clearly outlining the general and specific terms, coverage details, exclusions, and essential information within the insurance contract.

Minimum requirements include specifying the insured interest, the nature of the risks covered, the insured amount and premium, the contract's start and end dates, and its duration.

The Insurance Contract Law sets out legal provisions that take into account the specific nature of insurance contracts in general, and certain types of insurance in particular, such as personal, property, life, fire, medical, marine, and reinsurance contracts.

The law defines the obligations of both parties in an insurance contract and clarifies the legal consequences of terminating a contract for valid reasons before its expiry, including the resulting obligations for both the insurer and the insured.

Finally, it sets the limitation period for filing claims arising from an insurance contract, specifies the circumstances under which this period may be interrupted, and determines when the right to file claims arises for both the insured and third parties.