Amman, April 15 (Petra) - The Lower House of Representatives, by a majority vote, greenlit the Senate's amendments to articles of the draft amended 2025 Insurance Contracts Law, accordingly passing the bill with the Senators's amendments.

The endorsement came during the House's legislative session held on Wednesday, chaired by Speaker Mazen Qadi, and attended by members of the government team.

The Senate had approved the amended draft as sent by the House on April 6, 2026, with its own amendments, and subsequently returned the bill to MPs.

The Cabinet had approved the bill during a session held on November 5, 2025.

On its rationale, the law aims to enhance "transparency and fairness" in the transactions between insurance companies and citizens.

The draft secures protection of insurers' rights by obligating insurance companies to respond to claims within just 10 days and banning imposition of unfair or ambiguous conditions.

The draft law aims to enhance confidence in the insurance sector and achieve the principle of fair compensation by protecting all parties' rights.

To achieve this goal, the regulation ensures that contract terms are "clear, simple, and interpreted in favor of the insurer in case of any ambiguity." The bill also affirms the right to fair compensation to reflect the actual loss, up to the maximum agreed-upon insurance amount, and avoids ambiguous or unfair conditions that could deprive citizens of indemnity.

The law also establishes clear rules governing all stages of the insurance process and features overall and specific terms and conditions for this purpose.

Defining mutual obligations in the insurance contract, the new regulation clarifies the legal provisions on termination for justifiable reasons before the agreement's expiry and the joint consequent obligations.

//Petra// AG