Circular on Insurance Agents and Brokers Commissions

In the Name of Allah, the Most Gracious, the Most Merciful

[Logo of the Central Bank of Jordan]

Reference No.: 15/2/1457 Date: 18 / 8 / 1443 AH Corresponding to: 18 / 3 / 2022 AD

Dear Insurance Companies, Dear Insurance Agents, Dear Insurance Brokers,

Subject: Insurance Agents and Brokers Commissions

With reference to the above subject, and to Decision No. (20) of 2010 regarding commissions of insurance agents and brokers for mandatory vehicle insurance premiums, which stipulates that "Under no circumstances shall the company grant an insurance agent or broker a commission exceeding 5% of the premium of the mandatory vehicle insurance policy collected through this agent or broker."

We request confirmation that the aforementioned decision applies to all mandatory insurance contracts, including the mandatory portion of comprehensive vehicle insurance contracts.

Therefore, we request confirmation of the necessity to comply with the above, under the threat of taking legal measures against violators.

Please accept our highest regards.

Governor Dr. Adel Al-Sharkas

Copy to: The Jordanian Association of Professional Insurance Brokers.

P.O. Box 37, Amman 11118 - Jordan • Tel: 4630301 • Fax: 4638889, 639730, 461330 • Website: www.cbj.gov.jo • Email: info@cbj.gov.jo