Regulatory Alerts2021-12-15
Added · Updated
Cancellation of Previous Approvals for Total Loss Vehicle Insurance Contracts
The Central Bank of Jordan cancels all previous approvals for issuing and marketing Total Loss vehicle insurance contracts, effective January 1, 2022. Insurance companies wishing to re-issue these contracts must submit new applications pursuant to Article 27 of the Insurance Business Regulation Law, accompanied by specific technical data and documentation. The required submissions include general technical bases, premium rate mechanisms, reinsurance arrangements, and contract forms that comply with anti-money laundering and Sharia principles where applicable. Additionally, the deductible for total loss claims is capped at 10% of the compensation amount.