News Middle East05 Aug 2019

Jordan:Rule changed to allow electronic verification of traffic records

05 Aug 2019

The government has abolished a rule obligating vehicle owners to prove that they have not committed traffic violations when requesting a reduction in premiums when they seek renewal of their compulsory motor third party liability insurance cover.

The move by the government resolves an issue for insurers and vehicle owners about how proof of a clean traffic record is to be obtained.

Vehicle owners are eligible for a 15% discount on insurance premiums provided they have a clean traffic record during the previous year.

Prior to the change in the regulation, it was the insurance applicant who must submit the needed certification. However, last month, the Greater Amman Municipality made a unilateral decision to stop providing drivers with the required certification, following the installation of an electronic linkage between the municipal government and insurers that allows the latter to check traffic records of drivers. Insurers, on their part, said that they could not grant the 15% discount because of the then prevailing regulation.

The Jordanian Insurance Federation said in a statement last month that it was the party that had proposed the 15% discount for drivers with clean traffic records. Legislative amendments in 2010 to the mandatory motor insurance system provided for this feature for the first time in the kingdom.


 

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