Unified Compulsory Insurance Office Instructions No. 6 of 2011 and Its Amendments

Instructions No. (6) of 2011
Instructions of the Unified Compulsory Insurance Office and its Amendments*

Issued by the Board of Directors of the Insurance Authority pursuant to the provisions of Article (23) and paragraph (b) of Article (108) of the Law Regulating Insurance Business No. (33) of 1999 and its amendments.

Article (1):
These Instructions shall be known as the "Unified Compulsory Insurance Office Instructions of 2011" and shall come into force from the date of their publication in the Official Gazette.

Article (2):
A- The words and expressions used in these Instructions shall have the meanings assigned to them in Article (2) of the Law Regulating Insurance Business No. (33) of 1999 and its amendments, unless the context indicates otherwise. B- For the purposes of these Instructions, the following words and expressions shall have the meanings indicated below:

• The System: The Compulsory Vehicle Insurance System in force.
• The Union: The Jordanian Union of Insurance Companies.
• The Unified Office: The Unified Compulsory Insurance Office.
• The Company: An insurance company authorized to conduct the branch of insurance business for motor vehicle liability.
• Compulsory Insurance Policy: The insurance policy that provides the coverages stipulated in the System.
• Supplementary Insurance Policy: The insurance policy that provides the coverages agreed upon between the insured and the insurance company, other than those coverages provided by the Compulsory Insurance Policy.
• Comprehensive Insurance Policy: The insurance policy that includes the coverages provided by the Compulsory Insurance Policy, and any other coverages agreed upon between the insured and the insurance company.

• These Instructions were published in Official Gazette No. (5109) dated 16 April 2011 on page (4002), and were amended pursuant to Instructions No. (8) of 2011 "Amended Instructions for the Unified Compulsory Insurance Instructions" published in Official Gazette No. (5118) dated 2 October 2011 on page (4625).

Article (3):
A- The Company is obligated to issue Compulsory Insurance Policies through the Unified Office in accordance with the rotation system.
B- It is prohibited for any company to conduct this branch of insurance business other than through the Unified Office, which is supervised and managed by the Union, under penalty of legal liability. C- Tenders and vehicle fleets are exempted from the provisions of paragraphs (a) and (b) of this Article. A fleet is considered to be vehicles owned by legal persons or sole establishments, numbering no less than ten vehicles. D- In the event that an insurance company issues Compulsory Insurance Policies through tenders or when insuring vehicle fleets, the Company is obligated to electronically provide the Unified Office with information related to these policies upon issuance, which must include the following:

1. The license plate number and chassis number of the insured vehicle.
2. The type and class of the vehicles.
3. The name of the vehicle owner.
4. The start and end dates of the policy or policies, as applicable.
5. The policy number or numbers, as applicable.

Article (4):
The Unified Office shall exclusively perform the following:
A- At driver and vehicle licensing circles:
1. Collect premiums for Compulsory Insurance Policies, on behalf of the Company.
2. Fill in the data for Compulsory Insurance Policies and fill in amendments to these policies, on behalf of the Company.
3. Stamp Compulsory Insurance Policies and amendments to these policies with the seal of the Unified Office.
B- At border crossings:
1. Collect premiums for Compulsory Insurance Policies, on behalf of the Company.
2. Fill in the data for Compulsory Insurance Policies and fill in amendments to these policies, on behalf of the Company.
3. Stamp Compulsory Insurance Policies and amendments to these policies with the seal of the Unified Office.
4. Issue Compulsory Insurance Policies in accordance with the rotation system, on behalf of the Company.
C- Perform the tasks stipulated in the agreement on the Unified Motor Insurance Card for travel across Arab countries (the Orange Card) of 1975 related to the Unified Office.

Article (5):
A- The Company is obligated to electronically provide the Unified Office with data related to traffic accidents registered on vehicles insured with it and causing an accident, immediately upon the registration of a claim with the Company, under penalty of legal liability, including the following information:

1. The license plate number and chassis number of the vehicle.
2. The type and class of the vehicle.
3. The name of the vehicle owner and driver.
4. The date of the accident.
5. The name of the insurance company insuring the vehicle.
6. The insurance policy number and the issuing authority.
7. The type of damages resulting from the accident (material/personal injury/permanent total disability/death).
8. The amount of compensation paid by the insurance company and the date of payment, or an estimate of the compensation amount expected to be paid by the insurance company.
   B- The Unified Office is obligated to provide a database containing a minimum of the information mentioned in paragraph (a) of this Article.
   C- The Unified Office is obligated to electronically provide insurance companies, upon their request, with data related to traffic accidents registered on vehicles.

Article (6):
It is prohibited for the Company to do the following:
A- Request the Unified Office to stop executing any of its tasks stipulated in these Instructions, as long as the Company is not suspended from conducting the business of the motor vehicle liability insurance branch in accordance with the provisions of the applicable legislation. B- Request the Unified Office to direct the insurance applicant to obtain any approvals from any other entity, including branches of the Company, its agents, or representatives. The Unified Office is obligated not to accept any such directions from the Company. C- Direct the insurance applicant to obtain information related to traffic accidents from any entity. The database at the Unified Office shall be relied upon regarding information related to traffic accidents in accordance with the provisions of Article (5) of these Instructions.

Article (7):
A- The Company is obligated to issue amendments to Compulsory Insurance Policies at all driver and vehicle licensing circles through its branches or agents located in these circles or through the Unified Office. B- In the event that the Company issues amendments to Compulsory Insurance Policies through its branches or agents located in driver and vehicle licensing circles, the Company is obligated to provide the Unified Office with information regarding the issuance of these amendments on the same day, for the purpose of enabling the insured to conduct subsequent amendments to Compulsory Insurance Policies through the Unified Office.

Article (8):
The Company is obligated to issue a Compulsory Insurance Policy for a vehicle meeting the conditions stipulated in the Traffic Law in force, through the Unified Office in accordance with the provisions of these Instructions, under penalty of legal liability.

Article (9):
The Company is not subject to the provisions of these Instructions when issuing a Supplementary Insurance Policy or a Comprehensive Insurance Policy.

Article (10):
Subject to the provisions of Article (9) of these Instructions, no Compulsory Insurance Policy shall be accepted at driver and vehicle licensing circles or by any other entity unless it is stamped with the seal of the Unified Office. Similarly, amendments to Compulsory Insurance Policies shall not be accepted at driver and vehicle licensing circles or by any other entity unless they are stamped with the seal of the Company or the seal of the Unified Office.

Article (11):
The Union manages the Unified Office through a body established by the Union for this purpose, and in exchange for a service fee determined from the net Compulsory Insurance premiums realized through it, to be determined by the Board of Directors of the Union.

Article (12):
The Union shall establish unified offices in all driver and vehicle licensing circles, all border crossings, and wherever necessary outside thereof.

Article (13):
The Union shall issue instructions attached with the prior approval of the Director General to regulate the mechanism of work of the Unified Office.

Article (14):
The Unified Office located in driver and vehicle licensing circles shall:
A- Adopt the rotation system when executing its tasks stipulated in these Instructions.
B- Not accept any directions from the Company that lead to the Company ceasing to underwrite Compulsory Insurance for vehicles.
C- Execute decisions issued by the Authority regarding the suspension of any company from issuing Compulsory Insurance Policies for vehicles.
D- Establish an effective mechanism to implement the principles for calculating premium increases in accordance with the provisions of the Compulsory Vehicle Insurance Premium Instructions in force.

Article (15):
A- The Board of Directors of the Union shall determine the models of records, payment and receipt documents, and any other necessary models for financial and accounting operations and their entries, as well as the methods of keeping them. The Board shall also determine the period required to keep each type of them, the procedures for their destruction, and the committees to be formed for this purpose. B- Entries, documents, records, requests, and any papers and documents related to the business of the Unified Office may be kept electronically.

Article (16):
Copies of receipts and amounts collected by the Unified Office, after deducting the service fee determined for the Union, shall be delivered to each company for the policies issued by it, in exchange for a receipt of acceptance.

Article (17):
The Union may, with the consent of the Company, deposit the realized premiums in accounts opened for this purpose in the name of the Company. The deposit shall be made on the morning of the following day or by any other method agreed upon.

Article (18):
The General Assembly of the Union may form a committee to ensure the proper functioning of the Unified Office, whose members shall be chosen from the companies by election or by any method it deems appropriate.

Article (19):
The Unified Office is subject to the supervision of the Authority when conducting any of the activities stipulated in these Instructions.

Article (20):
A- The Director General may assign one or more employees of the Authority or appoint an external party to audit any of the transactions, records, or documents of the Unified Office at appropriate times. The Unified Office must place any of them at their disposal and cooperate with them to enable them to perform their duties fully. The Unified Office shall bear the fees determined by the Director General for the external party. B- The Unified Office is obligated to provide any data or information requested by the Director General regarding it within the period determined by the Director General.

Article (21):
A- It is prohibited for the Unified Office to conduct any tasks other than those stipulated in these Instructions without obtaining prior approval from the Director General.
B- It is prohibited for the Unified Office to engage in any explicit or implicit practices that would limit or prevent competition between companies, under penalty of legal liability.

Article (22):
The Director General shall determine the service fee for amending data of Compulsory Insurance Policies by a decision issued for this purpose.

Article (23):
The Instructions for Issuing Compulsory Insurance Policies for Vehicles No. (5) of 2010 and the decisions issued pursuant to it are repealed.

Article (24):
The Director General shall issue the necessary decisions to implement the provisions of these Instructions.

Board of Directors of the Insurance Authority