Regulatory Alerts2025-01-02
Added · Updated
Instructions on Insurance Company Liability in Mandatory Vehicle Insurance No. (21) for the Year 2024
The Central Bank of Jordan issues Instructions No. (21) for 2024, effective January 1, 2025, establishing fixed liability amounts for insurance companies under mandatory vehicle insurance. The document mandates specific compensation limits, including 17,000 Jordanian Dinars for death or total permanent disability, 100 Dinars per week for temporary disability up to 39 weeks, and 3,000 Dinars for moral damages. Additionally, it sets maximum liability caps at 7,500 Jordanian Dinars for medical treatment expenses and 75,000 Jordanian Dinars for property losses per incident. These instructions repeal the previous 2010 instructions while maintaining existing related decisions until replaced.
CENTRAL BANK OF JORDAN البنك المركزي الأردني
Number: 3/17/ 5162 Date: 30 Jumaada al-Thani 1446 AH Corresponding to: 31 December, 2024 AD
Dear Insurance Companies, Dear Jordanian Insurance Union,
Subject: Instructions on Insurance Company Liability in Mandatory Vehicle Insurance for the Year 2024
Greetings,
Pursuant to the provisions of paragraph (b) of Article (109) of the Insurance Business Regulation Law No. (12) of 2021 and the provisions of paragraph (b) of Article (6) and paragraph (a) of Article (19) of the Mandatory Insurance System No. (52) of 2024, we attach to you the "Instructions on Insurance Company Liability in Mandatory Vehicle Insurance No. (21) for the Year 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
Classification level: public Classification use: public Central Bank of Jordan P.O. Box (37) Amman, 11118 Jordan Email info@cbj.gov.jo Website cbj.gov.jo
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Central Bank of Jordan CENTRAL BANK OF JORDAN
Instructions on Insurance Company Liability in Mandatory Vehicle Insurance No. (21) for the Year 2024
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Contents
| Subject | Page |
|---|---|
| Article (1): | 3 |
| Article (2): | 3 |
| Article (3): | 3 |
| Article (4): | 4 |
| Article (5): | 4 |
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Article (1): These instructions shall be known as the "Instructions on Insurance Company Liability in Mandatory Vehicle Insurance for the Year 2024", and are issued based on the provisions of paragraph (b) of Article (6) and paragraph (a) of Article (19) of the Mandatory Insurance System No. (52) of 2021 and paragraph (b) of Article (109) of the Insurance Business Regulation Law No. (12) of 2021, and shall be effective from 2025/1/1.
Article (2): A- The words and phrases contained in these instructions shall have the meanings specified below unless the context or circumstances indicate otherwise:
- The Law: Insurance Business Regulation Law No. (12) of 2021.
- The System: Mandatory Vehicle Insurance System No. (52) of 2024. B- The definitions of terms and phrases contained in the Law and the System shall be adopted wherever they appear in these instructions, unless the context or circumstances indicate otherwise.
Article (3): A- The insurance company is obliged to pay the fixed amounts listed below to the injured party in the following cases:
| Type of Damage | Fixed Amount the Insurance Company is Obligated to Pay |
|---|---|
| 1- Death | (17,000) Jordanian Dinars per person, paid to the legal heirs according to legal shares. |
| 2- Total Permanent Disability | (17,000) Jordanian Dinars per person. |
| 3- Partial Permanent Disability | (17,000) Jordanian Dinars multiplied by the disability percentage per person. |
| 4- Temporary Disability | (100) Jordanian Dinars per week for a maximum period of (39) weeks per person. |
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| 5- Moral Damages Resulting from Death | (3,000) Jordanian Dinars per person, paid to the legal heirs up to the second degree. |
|---|---|
| 6- Moral Damages Resulting from Total Permanent Disability | (3,000) Jordanian Dinars per person. |
| 7- Moral Damages Resulting from Partial Permanent Disability | (3,000) Jordanian Dinars multiplied by the disability percentage per person. |
B- The limits of the insurance company's liability for compensation for medical treatment expenses and losses and damages to property shall be determined as follows:
| Type of Damage | Limits of Insurance Company Liability |
|---|---|
| Medical Treatment Expenses | (7,500) Jordanian Dinars as a maximum per person |
| Losses and Damages to Property, including: 1- Material Damage Compensation 2- Loss of Benefit Compensation 3- Diminution in Value Compensation | (75,000) Jordanian Dinars as a maximum per incident |
Article (4): The Governor shall issue the necessary decisions to implement the provisions of these instructions.
Article (5): The Instructions on Insurance Company Liability in Mandatory Vehicle Insurance No. (24) of 2010 issued based on the provisions of the Mandatory Vehicle Insurance System No. 12 of 2010 are 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.
Chairman of the Board of Directors of the Central Bank Adel Al-Sharkas