Amman, March 20 (Petra) -- The Jordan Chamber of Commerce (JCC) has emphasized that updating the insurance law is a critical step toward enhancing market stability and attracting investment to the sector.

Firas Sultan, the Chamber’s representative for the financial and banking sector, stated that the legislative changes would provide a clearer legal framework for insurance contracts, addressing regulatory gaps and supporting economic growth.

The Cabinet has approved the rationale for the 2025 Insurance Law draft, preparing it for submission to the Legislation and Opinion Bureau for further review. The proposed law aims to establish a dedicated legal framework for insurance contracts, as existing provisions under the Civil Code have proven insufficient.

It is designed to unify legal interpretations, ensure balanced contractual obligations, and introduce regulations tailored to specific insurance types, including life, property, health, and marine coverage.

According to industry experts, the updated law will improve market regulation, strengthen investor confidence, and support the broader Economic Modernisation Vision.

Before drafting the legislation, authorities consulted key stakeholders, including the Bar Association, the Amman Chambers of Commerce and Industry, the Civil Aviation Regulatory Commission, and the Jordan Maritime Authority. A public consultation period was also conducted through the Central Bank’s website.

Sultan described the legislation as a necessary step to enhance legal certainty in the insurance sector, ensuring better protection for all parties involved. "The proposed framework will address key challenges such as inflated disability assessments and streamline compensation processes, reducing market risks and improving efficiency," he said.

One of the notable provisions in the draft law is the explicit criminalization of the resale of insurance claims, with penalties including fines and imprisonment. Sultan noted that this measure is intended to eliminate unethical practices that have disrupted the market.

The draft law also introduces a structured approach to regulating the entire insurance process, from contract formation to claims settlement, with the goal of increasing transparency and operational efficiency.

Sultan, who also serves as the second vice president of the Jordan Chamber of Commerce, stressed the importance of the law in fostering a more competitive and stable insurance market.

He reiterated the Chamber’s commitment to supporting legislative reforms that enhance business conditions, attract investment, and drive economic growth.

//Petra// RZ

20/03/2025 11:19:53