Regulatory Alerts2021-09-26
Added · Updated
Central Bank of Jordan Directive on Timely Settlement of Insurance Claims
The Central Bank of Jordan issued Directive 17/M/1282 on August 18, 2021, ordering insurance companies to strictly comply with the Professional Conduct Instructions for Insurance Companies No. (9) of 2004 regarding the timely settlement of claims. The directive addresses delays in delivering compensation checks to vehicle accident victims, which the regulator identified as a violation of professional conduct rules. Insurance companies are warned that failure to adhere to these settlement timelines will result in the imposition of legal measures.
In the Name of Allah, the Most Gracious, the Most Merciful
[Logo of the Central Bank of Jordan]
Number: 17/M/1282 Date: 9/1/1443 Corresponding to: 18/8/2021
Dear Insurance Companies,
In light of the Central Bank of Jordan's commitment to ensuring that all activities and practices of insurance companies align with the provisions of the Insurance Activities Regulation No. (12) of 2021 and the effective systems, instructions, and decisions.
And given the receipt of numerous complaints alleging that some insurance companies are delaying the settlement of claims and the delivery of compensation amounts to victims of vehicle accidents, and providing them with late dates for the delivery of compensation checks, thereby forcing victims to resort to the Central Bank / Insurance Activities Supervision Department to file complaints. This results in further delays in receiving compensation amounts, which constitutes a clear violation of the provisions of the Professional Conduct Instructions for Insurance Companies No. (9) of 2004 and its amendments.
We urge you to confirm your necessity to comply with the provisions of the aforementioned instructions, under the threat of taking legal measures against companies violating this matter.
Please accept our highest respect,
The Governor Dr. Ziad Frieh