Amman, November 5 (Petra) – The Cabinet on Wednesday approved the draft Insurance Contracts Law for 2025, aimed at enhancing transparency, fairness and protection for policyholders in their dealings with insurance companies.
The draft law seeks to safeguard the rights of policyholders by requiring insurance companies to respond to claims within ten days and by prohibiting unfair or ambiguous contract conditions.
It introduces measures to stimulate investment and support the national economy through a modern legislative framework, while criminalising fraudulent practices such as the purchase of "crowds" (false or manipulated claims) and imposing clear penalties.
The law aims to strengthen confidence in the insurance sector and uphold the principle of fair compensation, ensuring the protection of all parties' rights.
It mandates that contract terms be clear and simple, interpreted in favour of policyholders in cases of ambiguity and guarantees fair compensation equivalent to the actual loss, up to the agreed-upon insurance amount.
Furthermore, the law establishes comprehensive rules governing all stages of the insurance process from application to contract execution clarifying key terms such as coverage, exclusions, insured risks and contract duration.
It defines the obligations of both parties, procedures for early termination and statutes of limitation for insurance-related claims.
The draft law covers various types of insurance, including personal, property, life, fire, medical, marine and reinsurance contracts.
In other decisions, the Cabinet approved the settlement of 272 outstanding cases between taxpayers and the Income and Sales Tax Department, in line with recommendations from the relevant committee.
The decision is part of the government's ongoing efforts to help business owners, investors and taxpayers rectify their situations, ease financial burdens and sustain economic activity.
The Cabinet approved the joint financing agreement for the Aqaba-Amman Water Desalination and Conveyance Project (National Water Carrier) between the Jordanian government represented by the Ministries of Water and Irrigation and Planning and International Cooperation and a group of donors.
The agreement marks a major milestone toward securing full financial closure for the project, which aims to desalinate and transport 300 million cubic meters of water annually from Aqaba to Amman, meeting the Kingdom's long-term drinking water needs.
The Cabinet endorsed the 2025 Impact Assessment Instructions, advancing the implementation of the Good Governance and Impact Assessment Bylaw for Legislation and Policies, approved earlier this year and effective September 2025.
The new instructions establish detailed procedures for applying impact assessments, defining the scope and depth of studies, clarifying the roles of the Good Governance Unit and other government entities and setting conditions for exemptions in emergency cases.
The instructions standardise the assessment model, promote professional analytical standards and ensure stakeholder consultation and documentation, aligning Jordan's governance practices with international best standards and enhancing transparency and accountability in policymaking.
The Cabinet approved the justifications for the draft Administrative Organisation Bylaw of the Constitutional Court for 2025, aimed at regulating administrative operations, streamlining organisational structures and optimising human resources within the Court.
The bylaw seeks to strengthen the role of the Court's Technical Office, enhancing its contribution to the Court's legal and consultative work.
In a related development, the Cabinet approved a Memorandum of Understanding between the Ministry of Energy and Mineral Resources of Jordan and the Palestinian Energy and Natural Resources Authority to enhance cooperation in the field of electricity.
The memo aims to strengthen partnership and coordination between the two sides in regional electricity interconnection projects through the exchange of expertise, technical data and resources.
These projects are expected to improve the efficiency and reliability of electricity networks in both countries, diversify energy sources and reduce costs.
Technical cooperation for the interconnection project is being advanced with support from the European Bank for Reconstruction and Development (EBRD) and other financing entities, based on ongoing feasibility studies conducted by the consulting firm CESI.
//Petra// AK
