Amman: The Lower House of Representatives, by a majority vote, approved the Senate's amendments to the articles of the draft amended 2025 Insurance Contracts Law, passing the bill with the Senate's changes. The endorsement took place during the House's legislative session chaired by Speaker Mazen Qadi and attended by members of the government team.
According to Jordan News Agency, the Senate had previously approved the amended draft as initially sent by the House on April 6, 2026, but made its own amendments before returning the bill to the Members of Parliament (MPs). The Cabinet had given its approval to the bill during a session held on November 5, 2025.
The rationale behind the law is to enhance "transparency and fairness" in transactions between insurance companies and citizens. The draft law secures protection of insurers' rights by obligating insurance companies to respond to claims within 10 days and prohibits the imposition of unfair or ambiguous conditions.
Additionally, the draft law aims to bolster confidence in the insurance sector and achieve the principle of fair compensation by safeguarding the rights of all parties involved. To this end, the regulation ensures that contract terms are "clear, simple, and interpreted in favor of the insurer in case of any ambiguity."
Further provisions of the bill affirm the right to fair compensation to accurately reflect the actual loss, up to the maximum agreed-upon insurance amount, while avoiding ambiguous or unfair conditions that could prevent citizens from receiving indemnity. The law establishes clear rules governing all stages of the insurance process and includes overall and specific terms and conditions for this purpose.
The new regulation also defines mutual obligations within the insurance contract, clarifying the legal provisions on termination for justifiable reasons before the agreement's expiry and outlining the consequent obligations for both parties involved.