AMMAN — The Lower House on Monday approved 75 articles of the 2025 Insurance Contracts Draft Law, during a session chaired by Speaker Mazen Qadi and attended by Prime Minister Jafar Hassan and members of the ministerial team.

 

The House had earlier approved 12 articles of the draft law during its session on February 23, followed by 12 more articles on February 25, bringing the total approved so far to 99 of the 101 articles in the draft law.

 

Article 25 of the law provides that insurance shall cover only risks that are probable to occur. In cases where multiple or consecutive risks result in a loss, the risk that has the greatest impact shall be considered, unless the parties have agreed otherwise.

 

Article 26 provides that parties may agree to cover damages arising from extraordinary circumstances or force majeure, provided that any explicit exclusions are clearly stated. Deliberate illegal acts committed by the insured, however, cannot be covered by insurance.

 

Articles 27 to 30 regulate insurance premiums, the termination or adjustment of contracts, insured amounts, and renewal procedures. These provisions also specify timelines for submitting requests and receiving responses.

 

Articles 31 to 45 address life and personal accident insurance, including rules on beneficiary designation, policy modification and termination, holding multiple policies on the same person, and coordination with other forms of compensation.

 

Articles 46 to 55 cover property and civil liability insurance, including compensation procedures and the proportional distribution of claims when multiple contracts exist. Amendments within this section introduced the possibility of parametric insurance based on predefined indices.

 

Articles 56 to 69 focus on civil liability, medical insurance, and marine insurance, specifying the forms of contracts, the insured property, coverage limits, and compensation rules. Adjustments were also made regarding collective medical insurance participation and individual continuation rights.

 

Articles 70–77 focus on maritime insurance, setting rules for voyage conditions, vessel seaworthiness, and contract compliance. They define justifiable vessel deviations or delays for safety, rescue, medical aid, or agreed circumstances, and require voyages to proceed at a reasonable speed.

 

Marine insurance contracts can be transferred, but insurer approval is required for ownership-based transfers, and proportional premium refunds apply. Insurer liability is excluded for delays, ordinary wear, inherent defects, poor packaging, or rodent/insect damage.

 

Articles 78–86 cover marine losses, general average, and insurer responsibilities. Losses are classified as total (actual or constructive) or partial, with procedures for property relinquishment and compensation. General average losses for common benefit are compensated proportionally if underinsured, while the insurer covers salvage and preventive expenses.

 

Articles 91–99 address contract termination, notifications, committees, claims, and penalties. Early termination by the insured triggers proportional premium returns, and marine insurance rules apply to land, air, and rail contracts if not conflicting.

 

Notifications may be delivered by personal, postal, or electronic means. Committees determine downtime and disability for claims, which must use licensed adjusters, and claims generally expire after three years, with special exceptions.

 

Unfair clauses are invalidated, but clauses granting better rights than the law remain effective. Illegal purchase of insurance rights, including vehicle insurance, is punishable by fines or imprisonment, with repeated offences doubling penalties.