Regulatory Alerts2021-12-15
Added · Updated
Central Bank of Jordan Circular No. 19355/2021 Regarding Total Loss Vehicle Insurance Contracts
The Central Bank of Jordan revokes 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 accompanied by specific technical data, including premium rate bases, reinsurance arrangements, and Sharia approval for Takaful entities. The circular mandates that deductible amounts must not exceed 10% of the compensation amount and requires adherence to anti-money laundering provisions and fair treatment principles.