jordan pulse -

The new 2025 Insurance Contracts Bill approved by the government criminalises the purchase of fake accident reports (“kroka”), imposing penalties of up to 3 years in prison and fines reaching JD50,000, according to Rana Tahboub, Executive Director of the Insurance Supervision Department at the Central Bank of Jordan.

Tahboub told a radio programme Thursday that the practice harms accident victims entitled to fair compensation, as it weakens insurers’ ability to meet obligations. She noted indicators showing large sums paid due to exaggerated damage estimates and fake reports.

She said the law marks a key step in reforming and regulating the insurance sector, creating the first dedicated legal framework for insurance contracts in Jordan to balance the interests of policyholders and companies.

The bill also clarifies contract terms, exceptions and obligations in simple, transparent language, ensuring any unclear conditions are interpreted in favour of the insured.

It further sets a 10-day limit for insurers to respond to applications, after which the policy is automatically approved, particularly for essential insurance types like health and life coverage.

Tahboub added that the law, endorsed by Cabinet Wednesday, will now move to Parliament for constitutional approval before taking effect.