Compulsory Insurance for Bodily Injuries in Jordan: What the Injured Party Needs to Know
After a traffic accident, the priority is medical treatment. But a complex legal layer soon emerges: who pays the cost of treatment? How is compensation for disability calculated? What if the insurance company refuses or stalls? What is the difference between the "blood money" (diya) awarded by the criminal judge and the "compensation" awarded by the civil judge?
This guide sets out a clear path for anyone who has been in a traffic accident in Jordan. The aim is not to replace legal consultation, but to enable the injured party to understand their rights and pursue their claim correctly within the framework of the Regulation on Compulsory Insurance of Civil Liability Arising from the Use of Vehicles in Jordan.
Note: Compensation amounts and coverage limits are amended periodically by decisions of the Central Bank and the Board of Directors of the Insurance Commission. Every figure in this guide should be verified with the insuring company or a specialist lawyer before relying on it. Last updated: April 2026.
1. What Exactly Does Compulsory Insurance Cover?
Compulsory insurance in Jordan (which the Licensing Department requires in order to register a vehicle) covers bodily and material damage to third parties resulting from the use of the insured vehicle. By its nature, it does not cover damage suffered by the at-fault driver himself or to his vehicle.
Coverage of bodily injuries includes:
- Medical treatment expenses: hospital, operations, medicines and physiotherapy, within the prescribed ceiling.
- Compensation for permanent partial disability: when the injured person is left with a permanent effect (such as reduced movement of a limb, partial loss of sight, or a percentage reduction in the ability to work).
- Compensation for permanent total disability: when the ability to work is lost entirely.
- Compensation for temporary disability: for the days of absence from work due to the injury.
- Compensation for death: paid to the deceased's heirs according to the Islamic inheritance shares, in addition to maintenance for dependants.
Coverage has a set ceiling for each injured person and an overall ceiling for each accident. When the actual damage exceeds this ceiling, the injured party is entitled to sue the at-fault party personally to obtain the difference.
2. What Does Compulsory Insurance Not Cover?
It is important to know the coverage exclusions in order to avoid surprises:
- Damage the vehicle causes to its own driver if he is the one at fault
- Damage that occurs while the vehicle is being stolen
- Damage where the vehicle is driven without a valid license
- Damage where the driver was drunk or had used narcotic substances at the time of the accident
- Damage during races or technical testing of the vehicle
In these cases, the company usually retains a right of recourse against the insured after paying the injured party; that is, it pays the injured party and then claims the amount from the at-fault party.
3. Distinguishing Between Blood Money and Civil Compensation
Injured parties often confuse "blood money" with "compensation," yet they are two distinct legal concepts:
| Blood money | Civil compensation |
|---|---|
| Determined in the criminal case, within a case of unintentional killing or harm | Awarded in a separate civil suit or in one brought as a private right within the criminal case |
| Its amount is fixed by law according to Islamic jurisprudence on blood money | Assessed on the basis of the actual damage: bodily, financial and moral |
| Owed by the offender and, in some cases, his kin group ('aqila) | Owed jointly by the at-fault party and the insurance company within the limits of coverage |
| Does not make good every form of damage; it is a fixed Sharia-based amount | Covers lost wages, treatment expenses, bodily disfigurement, psychological pain… |
In practice, the injured party is entitled to obtain both: blood money within the criminal case brought against the driver who caused the accident under the rules of criminal liability for traffic accidents in Jordan, and supplementary civil compensation. The rule is that blood money is deducted from the final compensation so that the injured party does not combine two compensations for the same damage.
4. The Stages of the Claim, from the Accident to Compensation
A traffic accident claim passes through three successive stages, in which legal work intersects with procedural and medical work.
The accident-scene stage: the first moments after the accident are decisive in forming the evidentiary file. The presence of a traffic patrol, documenting the scene before the vehicles are moved, and the presence of witnesses are all elements that are very difficult to make up for later, and the Traffic Department report drawn up at the scene is the most important document in the entire claim. What is said or signed at the accident scene, especially in terms of admitting liability, may decide the fate of the entire claim, since the subsequent procedures before the insurance company and the court are measured against it.
The first hours: what happens at the scene at the moment of the accident enters the file and does not leave it. Contacting a lawyer early, before giving any detailed statement, safeguards rights that may otherwise be lost later. The enforcement cases department at Alabwini Law Firm follows these files from the scene report onward.
The medical report and notification stage: here the medical and legal layers start together. The injured person is referred to an approved hospital or medical center, and a detailed medical report is obtained describing the injuries and their expected effect; the urgent report made at the time of the accident proves causation, and its absence cannot be made up for later. In parallel, the insurance company of the at-fault vehicle is notified in writing within the period prescribed in the policy and in the law, with proof that can be relied on later, since late or undocumented notification is one of the most common reasons insurance companies object to claims.
The claim and settlement or litigation stage: the claim file is completed with the procedural and medical documents and proof of damage, whose composition varies according to the nature of the accident and the type of injury. The company usually asks for the injured person to be examined by the competent medical committee to assess the disability percentage, which is the basis for calculating permanent compensation. Most claims end in an amicable agreement that closes the file with a release, but when the company stalls, refuses or offers a reduced amount, the course moves to the Court of First Instance competent to hear compensation actions arising from traffic accidents.
5. Judicial Proceedings Against the Insurance Company
If an amicable settlement proves impossible, a lawsuit is filed before the Court of First Instance competent to hear compensation actions arising from traffic accidents, in which the at-fault driver and the insurance company are sued jointly, and the court relies on a forensic medical expert or an official medical committee to assess the disability percentage if it is disputed. The court may go beyond the insurance ceiling if it is proven that the actual damage exceeds it, in which case the at-fault party is personally ordered to pay the difference.
The final compensation is calculated on the basis of a multi-factor analysis that links the medical committee's report to the injured person's economic circumstances. There is no ready-made formula the injured party can apply themselves; the figures the insurance company puts forward at the outset usually differ substantially from the fair outcome after professional or judicial negotiation. Lawsuits usually last between one and three years, varying according to the complexity of the injuries and the number of expert examinations required.
6. Limitation: When Does Your Right to Claim Expire?
One of the most important ways in which injured parties lose their rights in insurance cases is limitation. The right to claim lapses after a specified period from the date of the accident (or from the date of becoming aware of the damage in some cases), and if this period expires without a lawsuit being filed or an agreement being concluded, the injured party loses their right irreversibly.
The shortness of these periods, the difference in the point from which they start to run depending on the type of damage and injury, and the effect of administrative procedures and correspondence on the course of the limitation period are all delicate matters that a specialist lawyer understands, and the injured party should not rely on their own assessment of them. The right is lost through the passage of a specified period, not through obvious negligence; and the mere existence of correspondence with the company does not mean that the limitation period has stopped running.
7. The Pitfalls of Negotiating with the Insurance Company
Negotiating with the insurance company is a delicate point in every file. Many injured people fall into almost the same trap: accepting the first offer the company makes because it seems reasonable, signing a release before treatment is complete and the final disability percentage is assessed, handing original documents to the company without keeping copies, or entering into verbal understandings that leave no trace in the file. Each of these actions may permanently close the door on part of the compensation due, and it cannot be remedied after signing.
This point in particular is what makes engaging a specialist lawyer before any final signature, not after it, a direct financial difference. The gap between the company's initial offer and the fair outcome after professional negotiation is usually much larger than the cost of legal consultation.
Negotiation is a different arena: negotiating with insurance companies after an accident is a radically different arena from submitting an administrative claim. Alabwini Law Firm follows these files from the first claim through to the final judgment.
8. Special Cases Worth Noting
Accidents on intercity highways: more than one traffic department may become involved. It is preferable to gather all reports from the stations that took part in inspecting the accident.
Accidents involving pedestrians: pedestrians benefit from the compulsory insurance of the at-fault vehicle even if they had broken traffic rules, but their share of contributory liability reduces the compensation.
Accidents involving a foreign or tourist vehicle: the Orange Card rules apply within the limits of the arrangements among the Arab states, and the Jordan Insurance Federation handles the claim.
Accidents involving a vehicle without valid insurance: the Vehicle Accident Victims Compensation Fund steps in, paying the compensation and then claiming against the at-fault party.
Accidents in which a taxi driver is injured while working: the injured person is entitled to compensation from the vehicle's insurance, in addition to what he may be entitled to for a work injury under the Social Security Law.
9. Frequently Asked Questions
Am I entitled to treatment at any hospital or only at approved hospitals?
Compulsory insurance covers treatment at approved hospitals according to the company's list. Extreme emergencies are treated at the nearest hospital and the bills are settled later.
What if the accident happened on an international road between Jordan and a neighboring country?
The Orange Card governs coverage among the Arab states that are parties to the agreement. The report is filed at the accident scene and in the home country.
Am I entitled to sue the at-fault party personally if the insurance is not enough?
Yes. Compulsory insurance does not remove the at-fault party's personal liability for the damage. If the damage exceeds the policy ceiling, the insurance pays the ceiling and the at-fault party pays the difference.
Does the coverage include economic losses, such as loss of salary?
Yes. Loss of income due to days of temporary disability, or permanently reduced earnings due to partial disability, is a fundamental component of compensation, and it is calculated according to the injured person's actual salary.
What do I do if I have an accident and there are no witnesses?
Call the police immediately before moving the vehicle. The police report is based on the inspection and the physical traces, not only on witnesses.
Are the deceased's heirs entitled to claim moral compensation?
Yes. Moral compensation for the death of the breadwinner or a parent is an independent component of the claim, and the court assesses it according to the degree of kinship and the effect of the death.
If I was partly at fault for the accident, do I lose my right to compensation?
You do not lose it entirely. Liability is divided according to each party's share, and the compensation is reduced by the same proportion. For example, if you are held 30% liable, you are entitled to 70% of the assessed compensation.
Legal Consultation
Insurance disputes require careful follow-up from the first moment of the accident. The timing of filing the lawsuit, documenting the injuries and negotiating with the insurance company all directly affect the amount of compensation. Alabwini Law Firm provides specialist services in enforcement cases, compensation actions, and follow-up of files before insurance companies and the courts. For related guides: Civil Compensation Under Jordanian Law and Enforcement of Foreign Judgments.
