GAINSCO Reports 4th Quarter and Year 2009 Results

By Omar Obeidat, Jordan Times, Amman

Mar. 30–AMMAN — Several insurance firms have refused to provide motorists with auto insurance policies, demanding that rates be linked to driving histories.

Jordan Insurance Federation President Jawad Hadid told The Jordan Times on Monday that the companies refused the request in line with Article 7 of regulations recently issued by the Jordan Insurance Commission (JIC), which stipulates that premiums can be determined according to drivers’ traffic records.

He indicated that insurance premiums are linked to accident records and not traffic violations, indicating that drivers who were not able to obtain insurance policies from these companies have been insured by other firms.

Last year, the JIC fined several insurance firms for withholding documentation and demanding that clients provide them with traffic records. They were fined JD10,000 each.

Hadid referred to a Cabinet decision endorsing new insurance regulations in January this year, upon JIC recommendations.

The regulations stipulate that insurance companies can raise premiums by 25 per cent for drivers who were involved in an accident during the year that caused physical and material damages not exceeding JD2,500.

For drivers involved in accidents that caused damages exceeding the compensation paid by the firm, or over JD2,500, insurance firms are allowed to raise premiums by 50 per cent.

In addition, insurance companies have the right to double premiums for drivers responsible for causing accidents that resulted in death or permanent disability, according to the regulations.

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