(MENAFN - Jordan Times) The Kingdom's insurance companies plan to go on strike starting Wednesday morning to pressure the government to take action against "gangs" that these firms say are using fraudulent claims to extort money from them.
Jordan Insurance Federation (JIF) President Othman Budair said on Tuesday that all companies would stop working on Wednesday morning and would not reopen until the problem is solved.
Several gangs have recently taken to threatening and attacking these firms and their employees to force them to pay bogus claims for traffic accidents they caused intentionally, according to a JIF statement made available to The Jordan Times.
Budair declined to comment on the incident until the problem is resolved, but said discussions are ongoing between the JIF, the Public Security Department (PSD), the Ministry of Industry and Trade, and the Insurance Commission to resolve the issue.
"Tomorrow a meeting will be held with representatives of the JIF, PSD, trade ministry and commission to resolve the dispute" We will see how things go," Budair told The Jordan Times over the phone on Tuesday.
The JIF statement alleged that accidents orchestrated by these gangs had resulted in fraudulent insurance claims and result in severe losses for the companies.
The federation said it had sent several formal letters to the PSD and the Insurance Commission to put an end to this type of fraud, but the authorities did not act.
The PSD issued a statement in response, saying it had not ignored any of the several complaints it had received from insurance companies and employees, but rather investigated these incidents and referred them to court.
The department said it was working with the JIF and the Insurance Commission to address the problem and had held several meetings with representatives of the insurance sector.
One recommendation adopted in these meetings was to have accident reports issued electronically rather than on paper.