Khaberni - The Parliamentary Economic and Investment Committee, chaired by MP Khaled Abu Hassan, discussed the Insurance Contracts Bill for the year 2025 during a meeting held on Sunday.
The meeting was attended by the State Minister for Legal Affairs Fayad Al-Qudah, the Central Bank Governor Adel Sharkas, the Bar Association President Yahya Abu Aboud, the Director General of the Land Transport Regulatory Commission Riyad Al-Kharabsheh, the Director General of the Jordan Maritime Authority Omar Al-Dabbas, the Vice President of the Civil Aviation Regulatory Commission Firas Al-Hindawi, the Traffic Management Director Brigadier Raed Al-Assaf, and the General Manager of the Jordan Insurance Federation Muayad Al-Kloub, in addition to representatives from insurance companies and experts in the insurance sector.
The Parliamentary Economic and Investment Committee discusses the Insurance Contracts Bill for the year 2025.
Abu Hassan stated that the Insurance Contracts Bill is an important legislative step aimed at enhancing transparency and fairness in the relationship between insurance companies and citizens, and protecting the rights of the insured, in addition to developing the legislative environment regulating the insurance sector in line with economic modernization requirements and stimulating investment.
He pointed out that the bill focuses on enhancing citizens' trust in the insurance sector, affirming the principle of fair compensation equivalent to the actual loss and up to the agreed insurance amount, and it establishes clear legal controls to prevent the imposition of unfair or ambiguous conditions that may deprive the insured of their rights.
Abu Hassan explained that the law obligates insurance companies to respond to the insured's requests within a period not exceeding 10 days, and addresses negative phenomena that distort the insurance market, notably the purchase of "brokerage", by criminalizing it legally and imposing clear penalties, contributing to market regulation and protecting public interest.
He indicated that the bill provides a comprehensive legal framework regulating all stages of the insurance process, from the pre-contract phase to its execution, thus enhancing transparency and speeding up procedures in the insurance sector.
The deputies: Abdul Basit Al-Kabariti, Tariq Bani Hani, Mohammed Kataw, Salem Abu Dalu, Musa Al-Wahsh, Huda Nafaa, Abdul Halim Al-Ananbeh, Iman Al-Abbasi, Shaher Al-Shatnawi, and Basem Al-Rawabdeh, stated that the bill affects a wide segment of citizens and represents a qualitative leap in regulating the insurance sector, calling for further discussions with relevant entities to ensure protection for citizens, enhance legislative stability, and support the national economy.
They pointed out that the bill addresses legal gaps revealed by practical experience and enhances confidence in the local insurance sector, emphasizing that having a specific legislation regulating the legal provisions related to insurance contracts will improve the relationship between the parties to the contract and ensure a clearer understanding of their rights and duties.
They called on all attendees and relevant parties to submit their observations in writing to the committee for consideration and inclusion when enacting the law's articles to achieve a balanced law that ensures justice for the insured and maintains the stability of insurance companies, positively reflecting on the national economy and enhancing confidence in the insurance system in the Kingdom.
For his part, Minister of State for Legal Affairs Al-Qudah emphasized that the Insurance Contracts Bill is one of the important laws that affect a wide segment of citizens, noting that the government, when preparing the draft, was keen to involve all related parties and listen to their observations, aiming to achieve a balanced law that serves the national interest and addresses issues facing both citizens and insurance companies alike.
Sharkas stated that the bill is an important piece of legislation stemming from the economic modernization vision and is a fundamental pillar for maintaining balance among all parties of the insurance process, positively impacting financial stability and enhancing confidence in the insurance sector.
He noted that the insurance sector is vital and contributes to the national economy, highlighting the need to preserve insurance companies and ensure their sustainability and stability.
Bar Association President Abu Aboud emphasized the significance of the law as it regulates the insurance sector activities and contributes to resolving many legal disputes that arise in this field, noting that the Bar Association serves as a legal expert house, utilizing all its capabilities and resources in service to the nation.
He expressed appreciation for the cooperation and responsiveness of the Central Bank and the government to the Bar Association's observations, noting that 14 out of 18 observations were considered, all contributing to the quality improvement of the law.
Al-Kharabsheh presented a paper to the committee titled "Insurance Liability in Passenger Transport in Jordan," addressing the regulatory legal framework, international comparisons, and practical cases, urging an integrated approach that combines updating legislation, utilizing technology, and enhancing monitoring tools to ensure the protection of public transport users' rights.
Al-Dabbas emphasized the importance of including the legal texts related to maritime insurance in one law, to prevent any legislative conflict with other relevant insurance laws, enhancing the clarity of legal references in this field.
Al-Hindawi stressed that civil aviation insurance is regulated under the Civil Aviation Law in terms of airports, passengers, aircraft, and cargo; however, some practical implementations require further alignment, particularly concerning the rights of passengers, individuals, and buildings.
He confirmed that insurance should be an essential and mandatory element in any contractual process overseen by the Civil Aviation Law, to protect rights and meet safety and legal liability requirements.
Al-Assaf stated that the Insurance Contracts Bill is critically important for traffic management departments, particularly the Licensing and Traffic and Highway Patrols Departments, due to its direct association with vehicle registration and licensing procedures.
He explained that Article (5) of the Jordanian Traffic Law explicitly states that no vehicle can be registered, licensed, or have its license renewed without presenting a valid insurance contract covering the licensing period issued by an authorized insurance company in the Kingdom for vehicle insurance activities, and that Article (36) of the law specifies punishments for the expiry or absence of an insurance contract for Jordanian or foreign vehicles.
He highlighted that the Public Security Directorate is legally tasked with organizing crash diagrams, based on the Technical Investigation Instructions for Traffic Accidents of 2016, noting that the electronic crash diagram system was introduced to issue crash diagrams, aimed at speeding up citizen transactions, improving data accuracy, and curbing negative phenomena, notably staged accidents.
He mentioned the detection of 161 fabricated accidents in 2025, reflecting the impact of digital transformation in enhancing integrity, regulating violations, and protecting the rights of citizens and insurance companies alike.
Meanwhile, Al-Kloub reviewed the reality of the insurance sector and the challenges it faces, calling for a reassessment of the sector's condition and boosting citizens' confidence in it, noting that the bill serves as a fundamental reference for the insurance sector, although insurance companies have observations on some of its articles.
Insurance sector experts confirmed that the Insurance Contracts Bill features a modern character, keeps up with recent legislative developments and internationally recognized insurance principles, and that its enactment would add a qualitative dimension to the national legal system, serving the public interest and the national economy alike.
They mentioned that the overall provisions of the bill are drafted to ensure the protection of the insured and enhance principles of transparency and contractual fairness, in addition to organizing the relationship between the parties to an insurance contract on clear legal bases, which contributes to reducing disputes and raising the level of trust in the insurance sector in the Kingdom.
