1**Acts Controlling Insurance Activities
Control over the activities of insurance companies was commenced in 1965 when Act No. (5) for the year 1965 was issued, but the accelerating progress achieved by insurance companies lead to issuing of Act No. (30) for the year 1984 on 16/12/1984 to deal with the pitfalls found in the pervious Act, and to be more compatible with the economic developments experienced by Jordan at the time: And after eleven years had passed necessities and developments came up in the Jordanian Insurance Market enforcing their existence in the demand for joining others in globalizing its economy to be market oriented towards the international markets and that resulted in issuing a Act amending to the Insurance Control Act No. (9) for the year 1995.
more...
2**Insurance Supervision Act No. (33) for the year 1999 and the regulations, Instructions and Decisions issued there under Click Here
This was issued within the framework of the economic adjustment program adopted by the Hashemite Kingdom of Jordan for restructuring the economic sectors of various forms to reform them according to the requirement of the world trade organization (WTO) and European partnership agreement that Jordan has joined recently. This Act has incorporated advanced principles in addition to regulatory and control instruments suitable for the new international developments, which were not addressed by the previous legislation, of which the most important are:
Establishment of an independent entity to be called the “Insurance Regulatory Commission” to assume the duty of supervision, regulation and control over insurance practices.
Division of insurance practices into two main types: Life insurance and General Insurances. Also separation between both types in terms of practice, and enforcement of specialization of either type on companies established after the issuance of this Act.
Adoption of the solvency financial margin instead of depositing financial deposits in the name of the Ministry of Industry and Trade.
unification of the fiscal year initiation and expiry date for all insurance companies.
Limitation of insurance in Jordan to liability transferable and non-transferable assets available in the Kingdom, and imposition of financial fee in case of violation.
Imposition of obligations on the branches of foreign insurance companies running such business in Jordan, relevant to the amounts reserved by companies administration; and publication of its total closing accounts.
2.1**Regulations issued under this Act
a- Compulsory Insurance Regulation No. (32) for the year 2001.
This Regulation was issued to replace Regulation no. 29 for the year 1985, and its enforcement was delayed until the instructions being prepared for defining the rates of insurance and limits of liabilities are finalized. This Regulation incorporated new conceptions and tackled the pitfalls of the old one, and expanded the limits of insurance protection to include personal risks in addition to death, physical injury and material of damages. It also provided for the definition of third party which means any person other than the person insured or vehicle driver who may sustain damage as a result of accident caused by using such vehicle.
b- Regulation Insurance Practice fees No. 36 of the Year 2000
This Regulation is concerned with the annual fees levied on the total realized premiums and fees for application for practicing Insurance Business, collected by the Insurance Regulatory Commission. A Decision under No. (2) of the year 2000 was issued by virtue of this Act incorporating a mechanism for settlement of due fees to the Authority.
c- Insurance Companies Minimum Capital Regulation No. (66) of the Year 2001
This Regulation determined the minimum limit of the company's capital to have the right to practice general insurances, authorized after the Act for control of insurance practices comes into force, by the sum of (10) ten million dinars, and for practicing life insurance was fixed the sum of (15) fifteen million dinars and for re-insurance practices the sum of (50) fifty million dinars,noting that the minimum paid capital for existing companies is (2) two million dinars.
2.2**Instructions Issued under the Insurance Practices Control Act
(a)- Instructions No. (1) for the year 2000 - Branches of Instructions and licences of insurance practices.
(b)- Instructions No. (2) for the year 2000 - Instructions for services allowance.
(c)- Instructions No. (3) for the year 2001 - Instructions for inspection and estimation of damages sustained by transported and insured goods.
(d)- Instructions No. (4) for the year 2001 - Instructions for application of international Accounting standards.
(e)- Instructions No. (5) for the year 2001 - Instructions for insurance company's deposit.
2.3** Decisions Issued under the Insurance Practices Control Act
a)- Decision No. (1) of the year 2000 for concerning licensing of Insurance Practices.
(b)- Decision No. (3) of the year 2001 for fulfillment the Annual insurance fees.
(c)- Decision No. (6) of the year 2001 for cancellation of Decision No. (11) for the year 1985 and its amending Act No. (1) for the year 1991 relating to instructions for insurance companies remittances to underwriters and other remittances necessary for Insurance Practices.
(d)- Decision No. (9) of the year 2001 for insurance of the Royal Jordanian aircrafts (issued by the Special Bureau for interpretation of Acts pursuant to the provisions of Article No. (27) a b of the Insurance Supervision Act No. (33) for the year 1999.
(e)-Decision No. (1) of the year 2002 for publishing the Financial Data.
more...