Amman, Feb. 23 (Petra) – The Lower House of Parliament approved, by majority vote, 12 articles of the 2025 draft Insurance Contracts Law, out of a total of 101, during a session on Monday chaired by Speaker Mazen Qadi and attended by Prime Minister Jafar Hassan and government officials.

Minister of Political and Parliamentary Affairs Abdul Moneim Odat described the draft as Jordan’s first dedicated insurance law, integrating Civil Code provisions to regulate land, marine, fire, life, and motor insurance. He urged insurance companies to align their contracts with the law within ninety days of its publication in the Official Gazette, emphasizing fairness and equity in contracts between insurers and the insured.

Parliamentarians highlighted that the law establishes modern foundations based on the principle of good faith, clarifies pre-contractual disclosure obligations, protects the insured against unfair terms, and regulates medical, civil liability, personal, and property insurance.

Article 1, which was amended to reflect the year 2026, stipulates that the law will come into effect ninety days after its publication. Articles 2 and 3 apply the law to insurance contracts concluded after it enters into force.

Article 4 requires applicants to provide accurate and complete information, while insurers must review applications within fourteen days, except for mandatory insurance. Article 5 details the insurer’s rights in cases of breaches of disclosure, distinguishing between good- and bad-faith breaches and outlining procedures for contract termination, premium adjustments, or compensation. Articles 6 and 7 regulate the issuance of cover notes and establish the structure of insurance contracts, specifying essential terms, coverage, exclusions, and minimum information, including the insured interest, risks, premiums, and contract duration.

Articles 8 through 10 allow amendments via addenda, require execution of contracts in good faith, and obligate the insured to notify the insurer of any new material circumstances affecting the risk or premiums. Article 11 gives insurers five working days to respond to such notifications, offering options to adjust premiums or terminate contracts. Article 12 confirms the insured’s obligation to pay premiums and outlines the insurer’s rights if payments are not made.

The draft law, previously referred to the Parliamentary Committee on Economy and Investment and approved by the Cabinet in November, aims to enhance transparency, fairness, and efficiency in the insurance sector. It criminalizes fraudulent practices, protects the rights of the insured, ensures clear and simple contract terms, and strengthens investor confidence.

By codifying legal standards, regulating contract execution, and clarifying termination procedures, the law provides a comprehensive legislative framework covering all stages of insurance, from application to claims, while considering the specific characteristics of personal, property, life, medical, marine, and reinsurance contracts.

//Petra// AJ