AMMAN — The draft Insurance Contracts Law will apply to all insurance agreements signed after its entry into force, regardless of whether the company is active or under liquidation, Central Bank of Jordan (CBJ) official Rana Tahboub confirmed on Thursday.

Tahboub, Director of the CBJ's Insurance Companies Oversight Department, told Al-Mamlaka TV that the law clearly defines the rights and obligations of both insurers and policyholders, while regulating the stages of the contractual process to reduce disputes.

She added that disagreements between insurers and policyholders will be resolved according to the terms of the contract, with courts intervening to interpret ambiguities in favor of the insured if necessary.

The law also targets the illegal practice of buying insurance policies solely to make fraudulent claims, making it a criminal offense punishable by fines of up to JOD 50,000, up to three years in prison, or both, with penalties doubling for repeat offenders, the official added.

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