Regulatory Alerts2025-01-02
Added · Updated
Instructions for Determining Vehicles with Private Use for Insurance Purposes No. (23) of 2024
The Central Bank of Jordan issued Instructions No. (23) of 2024, effective January 1, 2025, to define vehicles with private use for mandatory insurance liability. The rules establish that insurance companies are not liable for accidents occurring while such vehicles perform their designed specialized functions, such as excavation or lifting. Conversely, insurers remain liable if accidents happen during road travel or when the vehicle is used for purposes other than its specific design. The instructions also exclude emergency vehicles, hearses, driving training vehicles, and mobile restaurants from the private use classification.
CENTRAL BANK OF JORDAN
Central Bank of Jordan
Reference No.: 3/17/ 5160 Date: 30 Jumaada al-Thani 1446 AH Corresponding to: 31 December, 2024 AD
Dear Insurance Companies, Dear Jordanian Union of Insurance Companies,
Subject: Instructions for Determining Vehicles with Private Use for Insurance Purposes for the Year 2024
Greetings,
Based on the provisions of paragraph (b) of Article (109) of the Law Regulating Insurance Business No. (12) of 2021, and the provisions of paragraph (z) of Article (9) and paragraph (a) of Article (19) of the Mandatory Insurance System No. (52) of 2024, we attach to you "Instructions for Determining Vehicles with Private Use for Insurance Purposes No. (23) 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,
Governor Dr. Adel Al-Sharkas
[Logo of the Central Bank of Jordan]
Instructions for Determining Vehicles with Private Use for Insurance Purposes No. (23) of 2024
Contents
| Subject | Page |
|---|---|
| Article (1): | 3 |
| Article (2): | 3 |
| Article (3): | 3 |
| Article (4): | 4 |
| Article (5): | 4 |
Article (1):
These Instructions are named "Instructions for Determining Vehicles with Private Use for Insurance Purposes for the Year 2024", and are issued based on the provisions of paragraph (z) of Article (9) and paragraph (a) of Article (19) of the Mandatory Insurance System No. (52) of 2021 and paragraph (b) of Article (109) of the Law Regulating Insurance Business No. (12) of 2021, and they are considered effective from 2025/1/1.
Article (2):
a- The words and expressions contained in these Instructions have the meanings specified below, unless the context or circumstances indicate otherwise:
- The Law: The Law Regulating Insurance Business No. (12) of 2021.
- The System: The Mandatory Insurance System for Vehicles No. (52) of 2024.
b- The definitions for terms and expressions contained in the Law and the System are adopted wherever they appear in these Instructions, unless the context or circumstances indicate otherwise.
Article (3):
In interpreting a vehicle with private use for the purpose of determining whether an insurance company bears any liability under the provisions of the System, the following shall be observed:
a- It is considered a task of a vehicle with private use to perform certain works and operations by itself or through additional equipment mounted on it, such as excavation and drilling machines, lifting, transferring, and unloading machines.
b- No liability shall be imposed on the insurance company under the provisions of the System if the accident occurs while the vehicle with private use is engaged in the purpose and objectives for which it was designed, such as transport, lifting, or towing, provided that the accident occurred due to the machine for which the vehicle with private use was designed to enable it to perform its work.
c- Liability shall be imposed on the insurance company under the provisions of the System if the accident occurs when the vehicle with private use is used for purposes other than those for which it was designed, or when it is traveling on roads.
Article (4):
The following vehicles are not considered vehicles with private use, as they are intended for travel on roads, including but not limited to:
- Emergency vehicle (ambulance/firefighting).
- Hearse.
- Driving training vehicle.
- Mobile restaurant vehicle.
Article (5):
The Governor shall issue the necessary decisions to implement the provisions of these Instructions.