• Compulsory Insurance - Third Party Liability (TPL) Insurance:

This insurance covers the liability arising from using the vehicle and causing damages to a third party, including bodily injury and material damage. In Jordan, this type of insurance is compulsory by law and is enforced by the Civil Liability Compulsory Motor Insurance Regulation where every vehicle owner is obliged to buy TPL insurance upon licensing their vehicle. Prices and limits of liability are predetermined by the instructions set by the TPL Compulsory Regulation.

Jordan Insurance Federation (JIF) oversees the issuance of TPL covers through its Unified Office and the various JIF offices at the licensing departments and boarders’ offices across the Kingdom. The Unified Office allocates in certain quotes the issued policies among insurers.

  • Complementary Insurance

This is an optional coverage and insurers determine its prices according to competitive market rates. Complementary covers provide protection to the body of the vehicle that causes the accident which is not covered by the Compulsory TPL insurance policy. The insurance company reimburses the policyholder for the damage or loss that is caused to the vehicle, its spare-parts and accessories in cases of collision or overturning, fire, external explosion, inflammation, lightning, burglary, attempted theft, vandalism, falling objects, and/or damages while towing the vehicle. Complementary insurance coverage limits are subject to the conditions and exclusions stipulated by insurance companies in their policies.

  • Comprehensive Insurance

This type of insurance combines both compulsory (TPL) insurance and Complementary insurances. Comprehensive insurance is issued directly by insurance companies. The insurance contract includes two policies: the TPL compulsory cover, which is subject to the conditions and provisions of the compulsory Law in accordance with the stipulated regulations and set prices. The other is the Complementary policy, which is subject to the conditions and prices set by the insurance company.

  • Motor Insurance procedures

Issuance procedures

Motor TPL compulsory insurance policies are issued through the JIF offices, which work under the United Office and are located throughout the Kingdom at the licensing centers of the Traffic Department. There is a unified form filled by the employees at the Unified Offices (the motor TPL insurance contract) with the price being set in line with the Compulsory TPL regulations and depending on the type and use of the vehicle.

Consequently, the Federation distributes these policies among insurance companies according to each company’s role at the Borders Centers and Traffic Licensing Department offices as stipulated by Article 14 of the Unified Office instructions No. 6 of 2011 issued by the Insurance Commission on 16 August, 2011. This obligated the Unified Office to adopt the rotation system when issuing the TPL insurance policies to Jordan vehicles.

  • Procedures for Issuing Complementary and Comprehensive Insurance Policies:
  • These types of insurance are issued directly by the insurance company or through its authorized representatives or agents.
  • The client chooses the type of cover according to their needs and provides detailed information about the vehicle.
  • The price of the insurance policy is determined according to the type of coverage and the conditions stipulated in the insurance policy.
  • The insurance company conducts a pre-insurance inspection to confirm any bodily defect or lack of contents if any.
  • The policy shall be issued with the premium determined by the company. Then, the policyholder pays the premium and receives his copy of the policy.
  • Claims Procedures:
  • Informing the insurance company of the accident and submitting documents including the police report, driving license, vehicle registration and a valid insurance policy at the time of the accident.
  • Paying the determined deductible by the policyholder (vehicle owner) for complementary or compulsory insurances. (There is no deductible for TPL compulsory insurance accidents).
  • A representative from the insurance company assesses the damaged vehicle and prepares a list with damages and the required spare-parts to be repaired or replaced.
  • Repairing the vehicle in coordination with the company through authorized spare-parts agents and garages. Deductible and depreciation apply in case of replacing parts, in accordance with the insurance policy.
  • Settling the claim, paying the expenses and signing a discharge.

For bodily injuries caused by the accident, settling claims of medical treatment (partial or temporary disability, terminal disability) or death, each case is treated in accordance with the type of insurance (compulsory/comprehensive) taking into account the terms and indemnity limits for each type.