jordan pulse -
Minister of Industry, Trade and Supply Youssef Al-Shamali approved the plan to implement the decision to subject cars imported from dealers and non-agency showroom owners to a “mandatory warranty,” which will begin early next October.
The mandatory warranty decision applies to cars of the year of clearance, the year before it, or the year after it, and the distance traveled is less than a thousand kilometres, based on the Cabinet’s decision issued last June.
According to a book seen by Al-Mamlaka, the value of the mandatory warranty ranges from 3-7% of the vehicle’s value, excluding sales tax, with the minimum value not being less than 300 dinars.
The plan adopted the conditions for the mandatory warranty referred to in the Council of Ministers decision, as the minimum conditions that must be met by the mandatory warranty required for new vehicles, which must be provided when the vehicle is licensed for the first time at the Driver and Vehicle Licensing Department.
The following entities are approved as executors of the guarantee: Car dealerships and insurance companies, provided that they have the minimum solvency margin required under the instructions of the Central Bank according to the latest published financial statements, and an insurance contract covering the minimum mandatory guarantee terms duly approved by the Central Bank, and duly approved maintenance centers registered.
Requests to implement mandatory guarantees from the above-mentioned entities are submitted electronically or on paper to the Ministry of Industry, Trade and Supply via a platform designated for this purpose.
The approved (maintenance centers) are obligated to provide a certified check or an unconditional financial guarantee issued by one of the licensed banks in the Kingdom and automatically renewed on an annual basis, upon the order of the Minister of Industry, Trade and Supply, in addition to his position according to the attached schedule, in order to be allowed to work on receiving and implementing the mandatory guarantees.
The plan also stipulates that the name of the car agency, insurance company, or approved maintenance centers that have been agreed upon and are permitted by the Ministry of Industry, Trade and Supply to implement the warranty clauses be included on the platform designated for that purpose.
A committee will be formed by decision of the Minister and its membership includes a representative from each of the specifications and standards, the Driver and Vehicle Licensing Department, the Jordanian Customs and the Ministry of Interior, provided that its working mechanism includes several goals, including verifying the accuracy of the data provided by the above-mentioned authorities.
It also includes its mechanism of action. Recommending part or all of the guarantee to be liquidated in the event that the data provided according to the committee’s report is discovered to be incorrect, or the maintenance center does not comply with the contractual obligations included in the mandatory guarantee, and in the event that the maximum permissible limit of guarantees issued by the maintenance center is exceeded.
The committee may invite any person with expertise and experience to seek his opinion. In the event that it is proven that the maintenance center has violated its contractual guarantee obligations, several measures will be taken that allow the center to continue to work and receive guarantees according to the following sequence: 1. In the event that the center’s violation is proven for the first time, the value of the required financial guarantee will be increased
from Maintenance center worth (50) thousand dinars.
2. If the center’s violation is proven for the second time, the value of the financial guarantee required from the maintenance center will be increased by (100) thousand dinars.
3. If the center’s violation is proven for the third time, the value of the financial guarantee required from the maintenance center will be increased by (150) thousand dinars.
4. If the center is proven to have violated it for the fourth time, its accreditation will be withdrawn and it will be prevented from receiving new guarantees, provided that the obligations previous to the ban decision remain in effect until the expiry of its last guarantee.
The guarantee is issued by the sponsor, is approved by the authorities mentioned in Clause Two, and is sent to the Jordanian Customs Department and the Drivers and Vehicles Licensing Department electronically through the platform designated by the Ministry for this purpose.
All parties are committed to the mandatory warranty value mentioned in the appendix as a percentage of the car’s value upon sale, and no amounts may be collected more than what is stated therein. The Consumer Protection Directorate in the Ministry of Industry, Trade and Supply is responsible for following up on all procedures for implementing the decision.
The book defines mechanical or electrical malfunction as the malfunction of mechanical or electrical parts resulting from factory malfunctions or natural fault malfunctions that render them unusable, and which necessitates repair or replacement to return them to their normal working condition.
He also defined the vehicle as referred to in the warranty schedule, while the warranty is the commitment provided by the sponsor to ensure that there are no manufacturing defects that may appear during the use of the vehicle during the period covered by the warranty in accordance with the conditions specified in the warranty as a minimum, which is one of the conditions for licensing new cars mentioned in the coverage clause. .
The sponsor of the guarantee is defined as the natural or legal person to whom the guarantee was issued, and the executor of the guarantee represents car agencies, insurance companies, or entities that meet the conditions related to maintenance centers issued by the Ministry of Industry, Trade and Supply, and are contracted directly by the sponsor of the guarantee and are responsible for implementing the conditions of the guarantee.
The warranty coverage applies within the borders of the Hashemite Kingdom of Jordan only, and the warranty applies to new vehicles (cars) (model year of clearance, the year before that, or the year after that) and the distance they have traveled is less than (1000) kilometers.