The Central Bank of Jordan (CBJ) has completed preparing a draft insurance law, according to a statement by the regulator released last week.
This is a preliminary step towards enacting a special law to regulate the contractual relationship between the insurer and the insured in light of the insufficiency of the provisions contained in the Civil Code to regulate the insurance relationship.
The Central Bank says that the objective of the special law is to create a clear reference and address the legal loopholes and problems in practical application.
The draft insurance law takes into account the main elements and principles governing the insurance relationship, such as the insurance interest, utmost good faith and other principles, in addition to the obligations of the parties to the insurance contract. The draft also includes detailed provisions for the different branches of insurance such as fire, property, marine, and medical, etc.
A committee comprising a team from the Central Bank, experts in the field of law and insurance, and academics, gave comments and opinions on the draft law that will keep pace with developments and is in line with international best practices in the field of insurance. The proposed insurance law is to boost the insurance industry in line with the Royal Vision Programme for the modernisation of financial services in the kingdom.
The draft is published on the website of the Central Bank for feedback to be offered by the public.