Regulatory Alerts2025-01-04
Added · Updated
Instructions on Principles and Procedures for Settling and Paying Claims Arising from Vehicle Accidents No. (27) of 2024
The Central Bank of Jordan issued Instructions No. (27) of 2024, effective January 1, 2025, establishing mandatory procedures for insurance companies to settle vehicle accident claims. The rules require insurers to complete physical inspections within three working days, review claims within ten days, and pay settlements within five to ten working days depending on the amount. Specific compensation limits are set for loss of use, such as 8 dinars for private passenger cars, and a maximum liability of 10% for loss of value. Non-compliance with payment deadlines triggers penalties ranging from written warnings to fines between 5,000 and 10,000 dinars.