Regulatory Alerts2025-01-02
Added · Updated
Instructions for Determining Subscription Volume in Mandatory Vehicle Insurance for 2024
The Central Bank of Jordan issued Instructions No. (22) of 2024, effective January 1, 2025, which cap mandatory vehicle insurance premiums at 100% of an insurer's total equity rights within the Kingdom. The regulation exempts premiums included in comprehensive contracts from this cap and authorizes the Central Bank to prohibit additional contracts for insurers violating solvency requirements. These rules replace the previous Instructions No. (27) of 2010 and apply to insurance companies operating in Jordan.
CENTRAL BANK OF JORDAN
The Central Bank of Jordan
Number: 3/17/ 5162 Date: 30 Jumaada al-Thaniya 1446 AH Corresponding to: 31 December, 2024 AD
Dear Insurance Companies, Dear Jordanian Union of Insurance Companies,
Subject: Instructions for Determining Subscription Volume in Mandatory Vehicle Insurance for the Year 2024
Greetings,
Based on the provisions of paragraph (b) of Article (109) of the Insurance Activities Regulation Law No. (12) of 2021 and the provisions of paragraph (b) of Article (4) and paragraph (a) of Article (19) of the Mandatory Vehicle Insurance System No. (52) of 2024, we attach to you "Instructions for Determining Subscription Volume in Mandatory Vehicle Insurance No. (22) of 2024" issued pursuant to the decision of the Board of Directors of the Central Bank No. (2024/252) dated 2024/12/24.
Please accept our highest respect,
The Governor Dr. Adel Al-Sharkas
The Central Bank of Jordan P.O. Box (37) Amman, 11118 Jordan Email: info@cbj.gov.jo Website: cbj.gov.jo
[Logo of the Central Bank of Jordan]
Instructions for Determining Subscription Volume in Mandatory Vehicle Insurance No. (22) of 2024
Contents
| Subject | Page |
|---|---|
| Article (1): | 3 |
| Article (2): | 3 |
| Article (3): | 3 |
| Article (4): | 3 |
| Article (5): | 4 |
| Article (6): | 4 |
Article (1): These Instructions shall be known as the "Instructions for Determining Subscription Volume in Mandatory Vehicle Insurance for the Year 2024" and are issued pursuant to the provisions of paragraph (b) of Article (4) and paragraph (a) of Article (19) of the Mandatory Insurance System No. (52) of 2024 and paragraph (b) of Article (109) of the Insurance Activities Regulation Law No. (12) of 2021. They shall be effective from 2025/1/1.
Article (2): A- The words and expressions contained in these Instructions shall have the meanings specified below unless the context or circumstances indicate otherwise:
- The Law: The Insurance Activities Regulation Law No. (12) of 2021.
- The System: The Mandatory Vehicle Insurance System No. (52) of 2024. B- The definitions of terms and expressions contained in the Law and the System shall apply wherever they appear in these Instructions unless the context or circumstances indicate otherwise.
Article (3): A- An insurance company shall be obliged to ensure that the total premiums of mandatory vehicle insurance underwritten by it do not exceed (100%) of the total equity rights of the insurance company's business within the Kingdom. B- Mandatory vehicle insurance premiums underwritten within a comprehensive insurance contract are exempted from the provisions of paragraph (a) of these Instructions.
Article (4): The Central Bank may prohibit an insurance company from concluding additional mandatory vehicle insurance contracts if the insurance company violates the financial solvency requirements according to the relevant prevailing legislation.
Article (5): The Governor shall issue the necessary decisions to implement the provisions of these Instructions.
Article (6): The Instructions for Determining Subscription Volume in Mandatory Vehicle Insurance No. (27) of 2010 and its amendments issued pursuant to the provisions of the Mandatory Vehicle Insurance System No. 12 of 2010 are hereby repealed, provided that the decisions issued pursuant to the provisions of the aforementioned Instructions shall remain in force until replaced by others in accordance with the provisions of these Instructions.