Insurance firms pay RO108mn for Oman cyclone damages

Muscat; The latest data from the Capital Market Authority (CMA) said that insurance companies have paid RO108 million for the damages caused by Cyclone Mekunu in the Governorates of Dhofar and Al Wusta in May. The number of claims was 765.

The data shows that properties insurance took the largest share of the gross indemnities at 61 per cent for 412 claims for losses at RO66 million followed by engineering at 31 per cent and RO 33.4 million for 91 claims. Motor vehicle claims took about RO679,000 against 206 claims.

The data shows that the losses caused by Cyclone Mekunu relating to properties include homes insurance and other properties which is evidence of the importance of home insurance against the risks of natural calamities and fires as well as the importance of awareness of the risk the properties are exposed to hedge their impact on the wealth and to provide peace of mind for the members of the community.

On the other hand the Omani insurance market was able to  absorb greater risks of motor vehicle insurance by expanding the insurance cover of the comprehensive insurance policy to cover natural calamities after the experience of the Cyclone Gonu in 2007. An option is allowed for third party insurance to pay an additional premium to cover natural calamities which resulted in better management for the Cyclone Mekumu in Dhofar and Al Wusta.

It is noteworthy that the basic role of insurance is  to mitigate the financial losses the community is exposed to for provision of security to practice the  commercial activities and better risk management to encounter any unexpected developments in the future which would enhance business environment and allow for  economic stability.

CMA held an emergency meeting with the managements of insurance companies immediately after the end of the cyclone Mekunu to discuss the facilities the companies would provide for their clients who suffered damage and a circular was issued urging  insurance companies and brokers to  ease and facilitate compensation processes.