Regulatory Alerts2025-01-02
Added · Updated
Instructions for Refunding a Portion of Compulsory Insurance Premium Upon Cancellation of Compulsory Insurance Contract for 2024
The Central Bank of Jordan issued Instructions No. (24) of 2024, effective January 1, 2025, mandating that insurance companies refund the unearned portion of the compulsory motor insurance premium to policyholders upon contract cancellation, provided the vehicle was not involved in an accident during the coverage period. The instructions require insurers to process these refunds immediately at the location where the cancellation occurs and to make this service available at all driver and vehicle licensing circles in the Kingdom. This directive supersedes Instructions No. (25) of 2010 while maintaining the validity of prior decisions until replaced.