You are here

Trade Ministry says snow damage covered under compulsory auto insurance

By Dana Al Emam - Jan 14,2015 - Last updated at Jan 14,2015

AMMAN — Car accidents that occurred during the recent blizzard have created disputes over compensation between some insurance companies and their subscribers, according to the Jordan Insurance Federation (JIF).

“A total of 670 electronic reports were issued on road accidents during the blizzard, resulting in five deaths in addition to physical damages,” JIF Director General Maher Hussein told The Jordan Times on Wednesday.

Hussein said compensation for each death case will reach JD20,000, noting that compensation for other damage has not yet been calculated.

“Some insurance companies have already agreed with their subscribers on compensation percentages, while other firms refuse to compensate,” he said in a phone interview, noting that the federation does not intervene in decisions of insurance firms.

A comprehensive insurance provision states clearly that it does not include damage caused by snow, floods, hurricanes or other natural disasters, Hussein said.

“However, compulsory auto third-party liability (TPL) insurance cites Article 261 of the Civil Law,” he added, noting that it stipulates that an individual will not be obliged to pay the coverage if he/she proves that damage to property occurred due to an “alien cause” beyond his/her control.

But if insurance companies and their subscribers do not reach an agreement on compensation, the latter can resort to court, which rules on whether the firm has to cover the damage cost and decides the percentage that it should pay.

Meanwhile, the Trade Ministry said damage caused to persons and vehicles during the blizzard by cars with TPL insurance will be covered under the compulsory auto insurance by-law. 

In a statement carried by the Jordan News Agency, Petra, Trade Ministry Spokesperson Yanal Barmawi said insurance firms are obligated to pay compensation, as accidents caused by snow are not listed in the exceptions of the compulsory auto insurance by-law. 

Barmawi noted that the ministry has received a number of complaints from TPL insurance subscribers who were involved in road accidents during the blizzard. 

The ministry called on those who have related inquiries or complaints to visit it or call on 06/5656327 extension 150 or 125.

Insurance companies, however, “will not” cover car accidents that happened during the curfew imposed by the authorities during the snow, Hussein said.

“Motorists involved in traffic accidents caused by slippery roads during the announced curfews were in clear violation of official instructions and cannot be compensated.”

up
70 users have voted.


Newsletter

Get top stories and blog posts emailed to you each day.

PDF