Roya News | Government approves mandatory vehicle insurance rules

During today’s meeting chaired by Prime Minister Dr Bisher Al-Khasawneh, the Cabinet approved a number of regulations and amendments.

The regulation on compulsory vehicle insurance for 2024 has been approved. Its purpose is to cover all damage resulting from car accidents, including damage to the driver and owner of the offending vehicle, and to establish the limits of the insurance company’s liability for such damage.

Its purpose is also to resolve disputes between insurance companies and beneficiaries by defining the scope of insurance and exclusions in the mandatory insurance contract.

Approval of the Single Office of Compulsory Vehicle Insurance for 2024: This decision establishes the rules and procedures for the operation and management of the single office under the supervision of the Central Bank of Jordan. It defines the duties, obligations, financial resources and other administrative and financial matters of the office.

Approval of the Insurers’ and Beneficiaries’ Guarantee Fund Scheme for 2024: This scheme establishes rules and procedures for compensating policyholders and beneficiaries in the event of liquidation of an insurance company or insufficient assets. It also specifies the financial resources of the fund and how they are to be used.

Approval of the justification for the draft amendment to the Competition Law Act for 2024: The aim of the draft is to ensure the protection of free and effective competition in the market by strengthening the institutional framework of the regulatory body responsible for enforcing the law.

The Competition Directorate will be renamed the “Competition Protection Department”, headed by a director general appointed by the Cabinet of Ministers. The amendments also propose the creation of a “Competition Advisory Council” and strengthening the means of detecting anti-competitive practices.

Approval to commence purchases of wheat and barley crops for the 2023/2024 agricultural season: Cabinet has approved the purchase of wheat and barley crops from the 2023/2024 agricultural season. This decision continues the government’s policy of supporting farmers and encouraging the cultivation of these strategically important crops.

The purchase prices were set at JD 500 per tonne of wheat seed, JD 420 per tonne of wheat grain, JD 420 per tonne of barley seed and JD 370 per tonne of barley grain.

The government will also sell improved seeds to farmers at the purchase price, bearing the cost of cleaning and sterilizing the seeds, estimated at JD 75 per ton. In addition, JD 29 million has been allocated to purchase about 70,000 tons of grain.

Exemption of Renewable Energy Systems and Devices from Customs Duties and Sales Tax: Renewable energy systems, devices and equipment that meet technical standards will be exempt from customs duties and sales tax for 90 days from the date of entry into force of the amended Renewable Energy Sources and Energy Efficiency Act.