Jordan: MTPL hike to boost premiums
Source: Middle East Insurance Review | May 2025
The Central Bank of Jordan (CBJ) has estimated that the increase in motor third-party liability (MTPL) insurance premiums by JOD12 ($17) for drivers who commit traffic violations would raise an additional JOD9.8m ($13.8m) in premiums for insurance companies this year.
CBJ governor Dr Adel Sharkas, giving the estimate in a reply to a question from a lawmaker, said that the additional premiums generated would cover a part of motor losses suffered by insurers and would not eliminate them, according to local media reports. Motor losses reported by insurers amounted to JOD28.2m in 2022 and JOD26.4m in 2023.
The central bank decided in December 2024 to add JOD12 to motor insurance premiums payable by those who commit traffic violations.
Dr Sharkas explained that the previous increase in the mandatory motor insurance premium was in 2010. This was a 25% hike from premiums set in 2001, in addition to an additional premium of JOD10 levied on both the driver and owner of the vehicle involved in an accident.
The JOD12 premium increase will not apply to rental vehicles, private and public buses, private and public freight vehicles, agricultural and construction vehicles, driver training vehicles, emergency vehicles, hearse vehicles, mobile restaurant vehicles, and motorcycles. M