Instructions on Principles and Procedures for Settling and Paying Claims Arising from Vehicle Accidents No. (27) of 2024

CENTRAL BANK OF JORDAN
البنك المركزي الأردني

Ref No: 3/17/ 5169
Date: 30 Jumaada al-Thani 1446 AH
Corresponding to: 31 December, 2024 AD

Dear Insurance Companies,
Dear Jordanian Insurance Union,
Subject: Instructions on Principles and Procedures for Settling and Paying Claims Arising from Vehicle Accidents for the Year 2024

Greetings,

Based on the provisions of paragraph (b) of Article (109) of the Insurance Business Regulation Law No. (12) of 2021, and the provisions of paragraph (a) of Article (7) and paragraph (a) of Article (19) of the Mandatory Vehicle Insurance System No. (52) of 2024, we attach to you the "Instructions on Principles and Procedures for Settling and Paying Claims Arising from Vehicle Accidents No. (252/2024) for the Year 2024" issued pursuant to the decision of the Board of Directors of the Central Bank dated 24/12/2024.

Please accept our highest regards,

The Governor
Dr. Adel Al-Sharkas

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Central Bank of Jordan
CENTRAL BANK OF JORDAN

Instructions on Principles and Procedures for Settling and Paying Claims Arising from Vehicle Accidents No. (27) of 2024

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Article (1):
These Instructions shall be known as the "Instructions on Principles and Procedures for Settling and Paying Claims Arising from Vehicle Accidents for the Year 2024," and they are issued based on the provisions of paragraph (a) of Article (7) and paragraph (a) of Article (19) of the Mandatory Vehicle 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 1/1/2025.

Article (2): a- The words and expressions used in these Instructions shall have the meanings specified below, unless the context or circumstances indicate otherwise:

1. The Law: The Insurance Business Regulation Law No. (12) of 2021.
2. The System: The Mandatory Vehicle Insurance System No. (52) of 2024.
3. The Agent: The person authorized to represent the insurance company on behalf of the claimant by a power of attorney legally empowering him to do so.
   b- The word "Claimant" wherever it appears in these Instructions shall refer to the injured party, unless the context or circumstances indicate otherwise. c- Definitions of terms used in the Law and the System shall be adopted wherever they appear in these Instructions, unless the context or circumstances indicate otherwise.

Article (3):
The insurance company shall comply with the following:
a- Dealing with claimants with honesty, fairness, and transparency. b- Providing guidance to the claimant and supplying him with sufficient information about the procedures for submitting and settling the claim, and assisting him in submitting the claim if necessary. c- Clearly advertising in the company's building the procedures followed for settling and paying claims, and the insurance company shall obtain the prior approval of the Central Bank for the content of the advertisement, which shall include at a minimum the following:

1. The papers and documents required to be submitted to the insurance company to support the claimant's claim.
2. Guiding the claimant to fill out the claim submission form and the necessity of obtaining proof of the company's receipt of his claim in accordance with the provisions of these Instructions.
3. The mechanism for the physical inspection of the damaged vehicle approved by the insurance company in accordance with the provisions of these Instructions.
4. Timeframes for reviewing the claim and responding to it.
5. Timeframes for paying the settlement amount.
6. The right to file a complaint in accordance with the instructions on the code of professional conduct and the necessary controls for the insurance company to deal with its customers in a fair and transparent manner.
   d- The insurance company may use additional means to advertise the procedures followed for settling and paying claims, including the use of a QR Code.

Article (4): a- The insurance company shall comply with the following when the claimant visits it to submit his claim:
1. Receiving the claim accompanied by the supporting papers and documents according to the "Insurance Company Claim Form for Accident" prepared and approved by a decision of the Governor for this purpose.
2. Providing the claimant with proof of its receipt of his claim and the supporting papers and documents according to the "Claimant Claim Receipt Form" prepared and approved by a decision of the Governor for this purpose.
3. Conducting a physical inspection of the vehicle within three working days from the date of the claimant's visit, according to the "Vehicle Physical Inspection Form" prepared and approved by a decision of the Governor for this purpose, noting the following:
a- The claimant must enable the insurance company to conduct a physical inspection of the vehicle before repair to determine the damages resulting from the accident and estimate their value. b- The insurance company shall provide him with proof of conducting the physical inspection, points of damage, and descriptions. c- Informing the insurance company of the actual location of the vehicle or bringing it to the place designated by the company shall be considered enabling the company to inspect it.
4. Conducting a physical inspection of other material damages other than vehicles within three working days from the date of the claimant's visit, according to the "Physical Inspection Form for Other Material Damages" prepared and approved by a decision of the Governor for this purpose, noting the following:
a- The claimant must enable the insurance company to conduct a physical inspection of the damaged property before repair to determine the damages resulting from the accident and estimate their value. b- The insurance company shall provide him with proof of conducting the physical inspection, points of damage, and descriptions. c- Informing the insurance company of the location of the damaged property or bringing it to the place designated by the company shall be considered enabling the company to inspect it.
5. The agent signing the "Agent Disclosure Form" regarding all contact data and information of the principal and himself, acknowledging and undertaking their accuracy, according to the "Agent Disclosure of Information Form" prepared and approved by a decision of the Governor for this purpose, and updating it whenever necessary.
b- The insurance company is prohibited from refusing to accept the claim on the grounds that the papers or documents are incomplete, and the insurance company shall observe the following:
1. Informing the claimant of the approved means to notify him of all missing papers and documents to complete his claim within three working days from the date of receipt, according to the "Request for Additional Papers and Documents Form" prepared and approved by a decision of the Governor for this purpose.
2. Adopting one or more means to notify the claimant from the means specified in these Instructions, provided that the company ensures the claimant's disclosure of his contact or notification information.
3. The claim shall be considered complete in terms of documents for review and response if the period specified in paragraph (1) of this clause expires.
c- The claimant, in case of multiple damages suffered by him, whether material, bodily, or death, shall consider each claim separate from the others.

Article (5):
The insurance company shall comply with the following upon receiving the claimant's claim:
a- Opening an accident file for all injured parties with a single main sequential number, indicating the date of receipt of each claimant's claim separately and coding them with sub-numbers. b- Registering the claimant's claim on the electronic system approved by the Unified Office System and the instructions issued pursuant thereto immediately upon receipt.

Article (6): a- The insurance company shall review the claim and respond with approval or rejection, stating the reasons for rejection, within ten days from the date of receiving the complete documents, noting the following:

1. In case of accepting the claim in full or in part, the insurance company shall state the following:
   a- The compensation amount. b- Clarifying the mechanism to reach the compensation amount, noting the following:
   1. Estimating the value of compensation for material damages to the vehicle according to prevailing prices and wages at the time of the accident.
   2. Retaining the supporting documents in estimating the value of the damage, whether the estimation was done by the insurance company or by a loss adjuster appointed pursuant to the provisions of these Instructions.
   3. Calculating compensation for bodily damages in accordance with the provisions of the relevant effective legislation.
      c- The reason for rejecting part of the claim in writing and notifying the claimant by any of the means the company adopts for this purpose.
2. In case of rejecting the claim, the following shall be done:
   a- Stating the reason for rejecting the submitted claim in writing and notifying the claimant thereof by any of the means the company adopts for this purpose. b- Delivering the original papers or documents received from the claimant, if he requests them, and the insurance company may retain a copy of these papers and documents. b- 1- The insurance company may request any additional papers or documents within a period not exceeding the duration specified in paragraph (a) of this Article, if it becomes apparent that the claim is incomplete in documents and that the additional papers are necessary to review and respond to the claim. 2- In case of requesting these additional papers or documents, the claimant shall agree with the insurance company to review the claim and respond to it within fourteen additional days from the date of receiving these papers, otherwise, the claim shall be considered rejected.

Article (7):
The insurance company shall include in the accident file the following data and documents at a minimum:

1. Accident sketch and its number.
2. Claim number.
3. Insurance policy.
4. Name of the insured and the claimant.
5. A summary sheet showing the stages taken from the date of receiving the claim until the date of paying the settlement amount.
6. Date of the claimant's visit to the insurance company.
7. Date of opening the accident.
8. Date of the accident.
9. Description of the claim (material, bodily, etc.).
10. Claimant's information.
11. Date of damage valuation.
12. Decision to review the claim and its date in accordance with the provisions of these Instructions.
13. Proof of its repair of the vehicle and restoring the situation to what it was immediately before the accident, in accordance with the provisions of these Instructions, as appropriate.
14. Proof of paying the compensation amount for damages to the vehicle and its date, as appropriate.
15. Proof of notifying the claimant of the procedures for settling and paying the claim and the final compensation amount agreed upon with his agent.
16. A final settlement and release form signed by the claimant or his agent prepared in accordance with the provisions of these Instructions.
17. Date of closing the accident.
18. Forms prepared and approved in accordance with the provisions of these Instructions, as appropriate.
19. Any papers or documents requested by the insurance company to settle the claim.

Article (8): a- The insurance company shall be committed to paying the compensation amount to the claimant by one of the following means, provided that the provisions of Article (16) of these Instructions are observed:

1. A bank check payable on demand.
2. Transfer to the bank account via International Bank Account Number (IBAN) or electronic wallets or any other means of approved electronic payment.
   b- The insurance company shall ensure that the claimant discloses his bank account transfer information or any of the electronic payment means if it adopts them to settle the claim.

Article (9): a- The insurance company shall be committed, when settling claims for material damages to vehicles, to restoring the damaged vehicle to its condition immediately before the accident, and the company may adopt any of the following:

1. Paying the compensation amount by one of the means specified in paragraph (a) of Article (8) of these Instructions.
2. Repairing the claimant's vehicle for vehicles not exceeding 3 years old at the agency or at the repair center approved by the guarantor, observing the provisions of Article (12) of these Instructions.
   b- The insurance company may, with the claimant's approval, repair the vehicle at any of the approved garages under its supervision.

Article (10):
The insurance company's liability for compensation for loss of use shall be determined in days for each day for each damaged vehicle according to the fixed amounts specified in Table No. (1) attached to these Instructions, and shall be calculated as follows:
a- The period required for the damaged vehicle to be repaired and restored to its condition immediately before the accident if the damages to the claimant's vehicle were paid in cash. b- The period from the date the insurance company receives the vehicle for repair purposes until notifying the claimant of the receipt of his vehicle after it has been repaired and the situation has been restored to what it was immediately before the accident.

Article (11):
The insurance company's liability in compensating for loss of value shall be determined as follows:
a- When the fixed parts of the vehicle are damaged. b- The loss of value compensation shall be calculated as the difference between the value of the damaged vehicle immediately before the accident and its value immediately after the accident and before repair, if the claimant is compensated in cash for the damages to his vehicle, and the compensation in this case shall include the repair value. c- The loss of value compensation shall be calculated as the difference between the value of the damaged vehicle immediately before the accident and its value after repair, restoring the situation to what it was immediately before the accident. d- The maximum limit of the insurance company's liability in compensating for loss of value is (10%) of the actual value of the vehicle at the time of the accident, in proportion to the actual damage suffered by the vehicle.

Article (12): a- The insurance company shall observe the following when the claimant claims compensation in accordance with the provisions of Article (9) of these Instructions:

1. If one year or less has passed since the manufacture of the vehicle, the damaged parts shall be replaced with new parts from the vehicle manufacturer or their value shall be paid.
2. If more than one year has passed since the manufacture of the vehicle up to ten years, the damaged parts shall be replaced with new parts similar to those of the damaged vehicle manufacturer, or with used parts from the same vehicle manufacturer and of the same quality level as the damaged parts immediately before the accident, or their value shall be paid.
3. If more than ten years have passed since the manufacture of the vehicle, the damaged parts shall be replaced with used parts from the same vehicle manufacturer and of the same quality level as the damaged parts immediately before the accident, or their value shall be paid.
4. In the absence of the replacement parts mentioned in paragraphs (2) and (3) of this clause, they shall be replaced from the manufacturer of the damaged vehicle, and an amount equivalent to their depreciation at a rate of 5% per year shall be deducted from their price, with a maximum of 25%.
   b- The insurance company may adopt the value of replacement spare parts according to the price of parts at the agency or with the guarantor/source of guarantee in case of presenting a tax invoice issued by the agency or the guarantor/source of guarantee.

Article (13): a- The return of damaged parts that were replaced or whose value was paid shall be the right of the insurance company. b- The claimant shall not lose his right to object to the parts to be replaced or the condition of the vehicle after the repair process if the insurance company and the claimant agree on repair in one of the garages approved by the company.

Article (14):
The claimant and the insurance company shall observe the following in case of disagreement on settling the claim:
a- Electing one or more loss adjusters licensed by the Central Bank to determine the damages and the compensation amount or the condition of the vehicle after repair, as appropriate, and their fees shall be shared equally between them. b- The insurance company shall provide the loss adjuster with a copy of all correspondence, data, or information related to the claim and any invoices, if any, proving the type and source of the replaced parts upon receiving the vehicle after the repair process, or in case of a dispute over the repair process or the condition of the vehicle after repair. c- Either party has the right, in case of objecting to the report of the loss adjuster appointed pursuant to the provisions of paragraph (a) of this Article, to appoint another or more loss adjusters licensed by the Central Bank, and their fees shall be borne entirely by the objecting party.

Article (15): a- The insurance company shall notify the claimant himself of the procedures carried out to settle and pay his claim and the final compensation amount agreed upon with his agent, three working days before the date of paying the compensation amount to the claimant's agent by any of the approved notification means. b- The insurance company shall notify the claimant by any of the following means:

1. Written notification.
2. Email.
3. Text messages via mobile phone.
4. The electronic account created for the claimant on the Sanduq application.
5. Any other means adopted by the Governor for this purpose.

Article (16): a- The insurance company shall be committed to paying the final agreed compensation amount to the claimant according to the following timeframes:
1. Within five working days from the date of approving the claim for amounts not exceeding three thousand dinars.
2. Within ten working days from the date of approving the claim for amounts exceeding three thousand dinars.
b- In case it is proven that the insurance company violated the provisions of paragraph (a) of this Article, the Central Bank shall impose the following penalties according to the powers authorized by the Law:
1. Issuing a written warning for the first time to the insurance company.
2. Issuing a final written warning to the insurance company.
3. A financial fine not less than five thousand dinars and not more than ten thousand dinars.
4. Doubling the value of the last imposed fine if it is proven that the violation was repeated within one year from the date of the last violation, provided that the maximum limit specified in the Law is not exceeded.
c- The insurance company shall obtain the prior written approval of the Central Bank for the final settlement and release form prepared by it and signed by the claimant when paying the final compensation amount.

Article (17): a- The insurance company shall prepare a policy for settling and paying claims arising from vehicle accidents and adopt it by the company's Board of Directors, to be reviewed at least annually and amended whenever necessary, including at a minimum the principles and procedures specified in these Instructions. b- It is prohibited for any major shareholder or member of the company's Board of Directors, in his personal capacity or as a representative of any shareholder in it, or the senior employee or any employee in it or their relatives up to the third degree, to have a direct or indirect interest in any transaction or contract with the entity that will repair the damaged vehicle and the entity from which the parts of the damaged vehicle are purchased, except for car agencies.

Article (18): a- The insurance company shall pay the medical bills of the owner or driver of the vehicle causing the accident or the person financially responsible for either of them or a relative of the claimant up to the third degree, if it is proven that any of them paid them on behalf of the claimant to medical institutions, provided that the claimant approves and presents original invoices indicating the name of the payer and the name of the claimant for whom the medical bills were paid. b- The amount paid pursuant to the provisions of paragraph (a) of this Article shall be deducted from the insurance company's liability limit for medical expense compensation due to the claimant. c- The insurance company shall undertake to pay compensation in cash for future operations and treatments upon their performance by the medical service provider or upon submitting a principal claim in accordance with the provisions of these Instructions, within the limits of its liability for medical expense compensation. d- The insurance company may object to the percentage of disability or the duration of disablement in accordance with the relevant effective legislation.

Article (19):
The insurance company is prohibited from demanding the at-fault party to pay the deductible unless the claimant demands compensation from the insurance company.

Article (20):
The insurance company shall comply with the instructions on the code of professional conduct and the necessary controls for the insurance company to deal with its customers in a fair and transparent manner that are in effect in all matters not addressed in these Instructions, to the extent that they apply to it.

Article (21):
The decision on the principles of settling compensation for damages to vehicles No. (6) of 2011 and its amendments is hereby repealed.

Article (22):
The Governor shall issue the necessary decisions to implement the provisions of these Instructions.

Chairman of the Board of Directors of the Central Bank

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Table No. (1)
Compensation for Loss of Use for Each Day for Each Damaged Vehicle

No.	Vehicle Category	Insurance Company's Liability to Compensate for Loss of Use for Each Day for Each Damaged Vehicle
1	Private Passenger Car (max 9 passengers)	(8) Dinars
2	Public Passenger Car (max 9 passengers)	(15) Dinars
3	Rental Vehicle	(15) Dinars
4	Motorcycle	(8) Dinars
5	Private Bus (1-9 passengers)	(20) Dinars
6	Public Bus (1-9 passengers)	(20) Dinars
7	Private Medium Bus (10-30 passengers)	(30) Dinars
8	Public Medium Bus (10-30 passengers)	(30) Dinars
9	Private Bus (more than 30 passengers)	(35) Dinars
10	Public Bus (more than 30 passengers)	(40) Dinars
11	Cargo/Van with max gross weight (5) tons	(40) Dinars
12	Shared Transport with gross weight (5.5) tons	(30) Dinars
13	Cargo with gross weight more than (5) tons and max (10) tons	(40) Dinars
14	Dump Truck with gross weight more than (10) tons	(40) Dinars
15	Cargo with gross weight more than (10) tons and max (20) tons	(40) Dinars
16	Cargo with gross weight more than (20) tons	(40) Dinars
17	Cargo with gross weight more than (20) tons / Oil or Gas Transport	(40) Dinars
18	Agricultural Vehicle	(40) Dinars
19	Construction Vehicle	(40) Dinars
20	Emergency Vehicle (Ambulance/Fire)	(40) Dinars
21	Mortuary Vehicle	(40) Dinars
22	Driving Training Vehicle	(40) Dinars
23	Mobile Food Truck	(40) Dinars
24	Special Use Vehicle	(40) Dinars
25	Smart Applications	(10) Dinars