Khaberni - The Middle East Insurance Company announced a strategic decision to completely close the Vehicle Insurance Department, effective from 1/1/2026, after a thorough study and comprehensive evaluation by the Board of Directors and Executive Management in light of the continuous losses experienced by the mandatory vehicle insurance sector, both at the company level and within the insurance sector as a whole.
The company pointed out that the decision to close the Vehicle Insurance Department was raised to the Central Bank of Jordan and approved after obtaining official approval on Wednesday, 31/12/2025, in compliance with the prevailing regulatory rules and instructions.
The company explained that its decision was the result of accumulated challenges in mandatory vehicle insurance, particularly staged accidents, the phenomenon of «purchasing crashes» for fraud and unearned compensations, exaggeration in medical reports resulting from accidents, increasing litigation against insurance companies without proper review, and non-professional expert reports in some cases, in addition to inadequate insurance premiums for this type of risk, which negatively reflects on the sustainability of this sector in Jordan.
This decision is part of a responsible management approach aimed at enhancing business efficiency and protecting the financial stability of the company and the rights of our clients in other types of insurance, in addition to protecting shareholders' rights, and focusing the company's resources on insurance sectors with feasibility and long-term stability.
The company confirmed that since its establishment about sixty years ago, it has not recorded any financial losses in its history, despite the challenges faced by the sector.
In this context, the General Manager of the Middle East Insurance Company, Engineer Majed Samirat, said: "The decision to close the Vehicle Insurance Department came after a careful and responsible study in light of the continuous losses from mandatory vehicle insurance, which are no longer sustainable under the current sector conditions. This decision reflects the company's determination to maintain its financial performance robustness, and to focus its resources on insurance sectors that provide real added value and support its long-term sustainability."
The company emphasized the strength of its financial position, currently boasting an excellent financial solvency margin of over 230%, reflecting its robust financial performance and its high ability to meet all its obligations.
The General Manager also confirmed that the company's capital amounts to 22 million Jordanian Dinars, and that the total shareholders' equity exceeds 42 million Jordanian Dinars, with retained earnings surpassing 10 million Jordanian Dinars, while the total assets of the company exceed 110 million Jordanian Dinars, besides having strong technical and financial reserves that form a fundamental pillar for its stability and business continuity.
The Middle East Insurance Company also reaffirmed its leading position in the Jordanian market, being the first company in marine and transport insurance, the sole and leading company in insuring large ocean-going vessels, as well as holding the first rank in engineering and banking insurances, and the second rank in property insurances. It was also the first company in the Jordanian market that introduced and practiced bank insurance in cooperation with several local banks, in addition to offering all types of insurance including travel insurance and road assistance.
In relation to the current vehicle insurance customers, the company assured its full commitment to continue providing all services until the end of the valid insurance policies, fulfilling all rights and entitlements, including handling claims and executing contractual obligations with professionalism and responsibility, confirming that all operations in all other types of insurance will continue as usual and will not be affected by this decision.
The Middle East Insurance Company concluded its statement by reaffirming its commitment to continue implementing its development plans, enhancing its focus on specialized insurance sectors that provide real added value to the national economy and the insurance market, renewing its commitment to transparency and responsible communication with the public and the media.
