CENTRAL BANK OF JORDAN

البنك المركزي الأردني

جَزِيرةُ مَلَكِ عُمَرَةٍ وَتَمَامِي
حُكْمُ الأُمَّةِ، حُكْمُ الأُمَّةِ، وَتَمَامِي الهيئة التأسيسية (9524/2023)

Reference No.: 17/3
Date: 30 Jumada al-Thani 1446 AH
Corresponding to: December 31, 2024 AD

To the Esteemed Jordanian Insurance Federation, To the Esteemed Insurance Companies,

Subject: Instructions for the Duties, Responsibilities, and Operating Mechanism of the Jordanian Insurance Federation in Managing the Unified Bureau for the Year 2024

Greetings,

Pursuant to the provisions of paragraph (b) of Article (109) of the Insurance Activities Regulation Law No. (12) of 2021 and paragraph (b) of Article (5) of the Unified Bureau for Compulsory Motor Vehicle Insurance System No. (51) of 2024, we attach to you the "Instructions for the Duties, Responsibilities, and Operating Mechanism of the Jordanian Insurance Federation in Managing the Unified Bureau No. (20) of 2024," issued pursuant to the decision of the Board of Directors of the Central Bank No. (2024/253) dated 24/12/2024.

Please accept our highest respect,

The Governor
Dr. Adel Al-Sharkas

Central Bank of Jordan
P.O. Box (37) Amman 11118, Jordan
Email: info@cbj.gov.jo
Website: cbj.gov.jo
Phone: 0096264630301
Fax: 0096264635615

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Instructions for the Duties, Responsibilities, and Operating Mechanism of the Jordanian Insurance Federation in Managing the Unified Bureau No. (20) of 2024

Issued pursuant to the decision of the Board of Directors of the Central Bank No. (2024/253) dated 24/12/2024

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Article No.	Page
Article (1)	1
Article (2)	1
Article (3)	2
Article (4)	2
Article (5)	2
Article (6)	2
Article (7)	3
Article (8)	3
Article (9)	3
Article (10)	3
Article (11)	3
Article (12)	4
Article (13)	4

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Instructions No. (20) of 2024

Instructions for the Duties, Responsibilities, and Operating Mechanism of the Federation in Managing the Unified Bureau for the Year 2024 Issued pursuant to the provisions of paragraph (b) of Article (109) of the Insurance Activities Regulation Law No. (12) of 2021 and paragraph (b) of Article (5) of the Unified Bureau for Compulsory Motor Vehicle Insurance System No. (51) of 2024

Article (1)

These instructions shall be known as the "Instructions for the Duties, Responsibilities, and Operating Mechanism of the Federation in Managing the Unified Bureau for the Year 2024," and are issued pursuant to the provisions of paragraph (b) of Article (109) of the Insurance Activities Regulation Law No. (12) of 2021, and paragraph (b) of Article (5) of the Unified Bureau for Compulsory Motor Vehicle Insurance System No. (51) of 2024. They shall be considered effective as of January 1, 2025.

Article (2)

A- The following words, wherever they appear in these instructions, shall have the meanings specified below, unless the context indicates otherwise:

• The Law: Insurance Activities Regulation Law No. (12) of 2021.
• The System: Unified Bureau for Compulsory Motor Vehicle Insurance System No. (51) of 2024.
• The Federation: Jordanian Insurance Federation.
• The Unified Bureau: The Unified Bureau for Compulsory Motor Vehicle Insurance pursuant to the provisions of Article (94) of the Law.
• The Company: An insurance company licensed to practice the branch of compulsory motor vehicle liability insurance.
• The Electronic System: The electronic system approved for implementing the provisions of the System for the purpose of issuing compulsory insurance contracts, including compulsory insurance contracts for holidays and fleets, and compulsory insurance contracts related to comprehensive insurance contracts.

B- The definitions contained in the Law and the System shall be adopted wherever they are mentioned in these instructions, unless the context or circumstances indicate otherwise.

Article (3)

A- The Federation is obliged to issue compulsory motor vehicle insurance contracts according to the approved model for this purpose.
B- The Federation is obliged, when issuing compulsory motor vehicle insurance contracts through the Electronic System, to fill in all data specified by a decision of the Governor.

Article (4)

The Federation shall take the necessary measures to implement the decisions of the Central Bank regarding compulsory motor vehicle insurance contracts, including decisions related to the suspension of issuing insurance contracts for companies that reach the maximum allowed subscription ratio as specified in the effective instructions for the basis of determining the size of subscription in compulsory motor vehicle insurance.

Article (5)

A- The financial resources stipulated in Article (7) of the effective Unified Bureau for Compulsory Motor Vehicle Insurance System shall be considered revenue for the Federation in exchange for its management of the Unified Bureau. B- The Federation shall adopt one or more separate bank accounts for the affairs of the Unified Bureau for the following purposes:

1. Depositing the net amount due to the Company for contracts issued on its behalf, after deducting the management fee referred to in paragraph (a) of this Article.
2. Transferring the net premiums due to the Company within three working days after maturity.

Article (6)

A- The Federation is obliged, when a private small vehicle owner wishes to use it in smart applications, to take the following measures:

1. Take the necessary measures to issue an addendum to the compulsory insurance contract covering the new status of use.
2. Continue to issue the status of use addendum (smart applications) with each compulsory insurance on the vehicle, unless the owner provides evidence of canceling the permit for using the vehicle under this status.

B- In the event that the owner of a private small vehicle visits the Unified Bureau and provides evidence of canceling the permit for using the vehicle in smart applications with the relevant authorities, the Federation is obliged to take the necessary measures to cancel the use addendum (smart applications).

Article (7)

In the event of the transfer of ownership of a vehicle, the Federation is obliged to inform the buyer of the traffic accidents recorded on the vehicle that result in an increase in the insurance premium, and the percentage of this increase.

Article (8)

The Federation or any of its employees are prohibited from providing any statements, data, or information about the insured or beneficiaries, or enabling others to access them, without obtaining prior written approval from the Central Bank. This prohibition applies to anyone who, by virtue of their profession, job, or work, directly or indirectly accesses such statements, data, or information.

Article (9)

For the purpose of performing the necessary tasks for issuing compulsory insurance contracts stipulated in the effective Unified Bureau for Compulsory Motor Vehicle Insurance System, the Federation is obliged to:

1. Provide an office or headquarters for the Unified Bureau in all driver and vehicle licensing departments, all border centers and crossings, and wherever work requirements necessitate.
2. Perform its duties at border centers and crossings on a 24-hour basis according to the work system of the relevant authorities.

Article (10)

The Federation shall preserve the rules, records, and documents related to the affairs of the Unified Bureau for a period of no less than ten years.

Article (11)

The Federation shall comply with the provisions of any other related legislation when issuing compulsory motor vehicle insurance contracts, including the effective instructions for compulsory motor vehicle insurance premiums.

Article (12)

The Federation shall provide the Central Bank with an annual report on the affairs of the Unified Bureau by the end of March of the following year, including its revenues and expenses.

Article (13)

The Governor shall issue the necessary decisions to implement the provisions of these instructions.

Witnessed by
Chairman of the Board of Directors of the Central Bank