The House of Representatives passed the Insurance Contracts Draft Law of 2025 as submitted by the government, after introducing amendments to some of its articles and striking others.
اضافة اعلان
During a legislative session held on Wednesday, presided over by Speaker Mazen Al-Qadi and attended by Prime Minister Jafar Hassan and members of the government team, the House approved Articles 100 and 101 of the bill. This decision aligns with the recommendation of the Parliamentary Economy and Investment Committee.
Article 100 stipulates that "the Cabinet shall issue the necessary regulations to implement the provisions of this law," while Article 101 states that "the Prime Minister and Ministers are tasked with the execution of the provisions of this law."
Legislative Timeline
The passage of the final articles follows a series of sessions:
March 2, 2026: Approval of 75 articles (Articles 25 through 99).
February 25, 2026: Approval of 13 articles (Articles 13 through 24).
February 23, 2026: Approval of the first 12 articles.
November 24, 2025: The bill was initially referred to the Economy and Investment Committee, which cleared it on February 4, 2026.
Objectives and Key Reforms
The law, originally approved by the Cabinet on November 5, 2025, aims to enhance transparency and fairness in the relationship between insurance companies and citizens. Key features include:
Consumer Protection: Insurers are mandated to respond to requests within 10 days. The law strictly prohibits the imposition of unfair or ambiguous terms.
Ambiguity Clause: Contracts must be clear and simple, with any ambiguity interpreted in favor of the insured party.
Fair Compensation: The law upholds the right to compensation equivalent to the actual loss, up to the agreed-upon sum insured.
Combatting Negative Practices: The bill criminalizes the illegal practice of "buying accident reports" (Kroka) and imposes clear legal penalties.
Investment Climate: By providing a sophisticated legislative framework, the law seeks to stimulate investment and bolster the national economy.
Regulatory Framework
The "Insurance Contracts" law establishes clear rules governing the entire insurance process—from the initial application to the execution of the contract. It mandates the disclosure of:
General and special terms and conditions.
Coverages and exclusions.
Minimum data requirements: insured interest, nature of risks, premium amounts, and effective dates.
The law also addresses the specificities of various insurance types, including Life, Property, Fire, Medical, Marine, and Reinsurance. Furthermore, it clarifies the obligations of both parties upon termination of a contract and defines the statute of limitations (prescription periods) for filing legal claims arising from insurance disputes.
