Amman: The Lower House of Parliament on Wednesday continued deliberations on the 2026 draft Insurance Contracts Law, approving Articles 13 through 25 during a session chaired by Speaker Mazen Qadi and attended by members of the government.
According to Jordan News Agency, the House endorsed Article 13, which regulates the consequences of non-payment of insurance premiums. The provision allows the insurer to request termination of the contract if 30 days elapse from the date of notification without payment, with compensation awarded wholly or partially, as warranted. The article further establishes that breach of certain preventive obligations may result in forfeiture of compensation unless the insured proves that the breach did not affect the occurrence of the risk, its aggravation, or the assessment of damage.
Article 14 obliges the insured, policyholder, or beneficiary to notify the insurer of the occurrence of the insured risk and submit the required documents within the timeframe stipulated in the contract. However, failure to notify within the agreed period does not automatically result in loss of compensation rights. The insurer may claim damages proportionate to any harm suffered due to delayed notification.
Under Article 15, in cases of total loss, the insured must transfer ownership of the damaged assets to the insurer in exchange for the agreed compensation. Article 16 requires the insurer to pay the agreed financial compensation or benefit upon the occurrence of the insured risk, even if the loss results from the involuntary negligence of the insured, the beneficiary, or persons under their control.
Article 17 clarifies disclosure obligations at the time of concluding the insurance contract, stipulating that the insured is not required to disclose information that reduces the likelihood of risk, is already known to the insurer, has been waived, concerns excluded risks unless specifically inquired about, or is unknown to the insured. The article also provides that acts undertaken by an insurance practitioner on behalf of the insurer are binding on the insurer, even if the agent exceeds the limits of authority, without prejudice to the insurer's right to seek recourse against the agent.
Article 18 prohibits the insured or beneficiary from entering into a settlement with a third party responsible for the loss without the insurer's consent, unless the settlement serves the insurer's interest.
Articles 19 through 24 address the concept of insurable interest across different types of insurance. Article 19 stipulates that insurance is valid only if a legitimate insurable interest exists at the time of contract conclusion or at the occurrence of the insured risk, as applicable, otherwise the contract is void.
The approved articles cover key provisions on compensation, risk, and insurable interest, aiming to clarify the rights and obligations of insurers and policyholders under the proposed legislation. The 101-article Insurance Contracts Bill seeks to enhance transparency and fairness between insurance companies and policyholders, establish clear contractual obligations, and provide a modern legislative framework to support the stability and development of the insurance sector.