A Cabinet session, headed by Prime Minister Bisher Khasawneh, approved the 2024 Mandatory Vehicle Insurance Bylaw on 21 July 2024.
The objective is to cover all damages arising from vehicle-related accidents and set limits on the insurance company’s liability to pay compensation, reported Petra News Agency.
The bylaw also contributes to resolving any dispute arising between insurance companies and beneficiaries of the compulsory insurance contract, by specifying the cases covered under the insurance agreement, as well as accidents that are not covered.
Additionally, the bylaw aims to protect the individual’s rights to receive compensation for physical or material damage caused by a non-Jordanian vehicle while inside the Kingdom, even if its insurance contract has expired.
In another related decision, the Council of Ministers also approved the 2024 Bylaw for the Unified Office for Compulsory Vehicle Insurance.
The regulation aims to identify provisions and procedures for the unified office’s operations and its management under the control and supervision of the Central Bank of Jordan (CBJ), set the office’s tasks, obligations, financial resources, and other administrative and financial affairs.
In a third move, the Council approved the bylaw for a guarantee fund for beneficiaries of insurance policies. This sets out provisions and procedures for compensating the insured, in the event of a decision taken to liquidate the insurance company, or in cases of asset deficiency.