Jordan: A Vision to solve the problems of nationals with the obligatory Insurance
Thursday, 09 03 2015, Category: Insurance and Reinsurance, Country: Jordan
The insurance sector is considered to be one of the most important economic sectors after the banking sector; however, this active sector has been suffering since decades from the problems of compulsory insurance and its negative effect on insurance companies. This prompted insurers to ask for the floating of prices.
When the insurance management did not respond in the ministry of Industry and Commerce for this request, some insurance companies introduced the total loss insurance policy in a wrong way circumventing the compulsory insurance prices, and this by adding the total loss insurance with a symbolic amount on the policy, which increased the problems of compulsory insurance for the insurance department of the ministry.
Nowadays, compulsory insurance policies has been issued through the Insurance Federation; as this will have good impact in collecting the federation for the insurance premiums in cash or at a reasonable cost of administrative expenses which helps the productivity of the insurance companies, as well as when the Federation opens licensing offices and those on the borders of the Kingdom.
Source: Al Ghad - Jordan