Insurance firms pay RO 79.8m in claims in 2025

Muscat: Insurance firms in Oman paid more than RO 79.8 million in traffic accident claims in 2025, according to preliminary data released by the Financial Services Authority (FSA).

The data show that around 75,300 traffic accidents were recorded in 2025, compared with 75,200 in 2024, marking a slight increase of 0.1 per cent. Of the total accidents, 54,271 were classified as minor, accounting for 72.1 per cent, while 20,993 were serious, representing 27.9 per cent. Serious accidents rose by 13.2 per cent compared with the previous year.

The total number of traffic accident claims exceeded 77,000 in 2025, up from 76,500 in 2024, reflecting a 1 per cent increase. Claims related to minor accidents declined to over 54,000 from 56,200 in 2024, a drop of 4 per cent.

In contrast, claims for serious accidents involving only material damage increased to around 11,000, compared with 9,900 in 2024, up 10 per cent. Claims for serious accidents involving injuries and medical expenses reached nearly 12,000, compared with 10,000 the previous year, marking a 17 per cent rise. Fatality claims totalled 342, slightly higher than 333 in 2024, an increase of 3 per cent.

Total compensation in 2025 exceeded OMR 79.8 million, compared with OMR 78.7 million in 2024, representing a growth of 1.47 per cent. The compensation figure includes both paid claims and claims under settlement.

Compensation for minor accidents amounted to OMR 34.04 million, down 9.1 per cent. Serious accidents involving material damage accounted for OMR 18.88 million, while compensation for serious accidents involving injuries and medical expenses exceeded OMR 22.47 million, a significant increase of 26.67 per cent compared with OMR 17.7 million in 2024. Compensation related to fatalities declined to OMR 4.45 million from OMR 4.8 million in the previous year, a decrease of 7.15 per cent.

The indicators point to a decline in minor accidents alongside a marked increase in serious accidents and higher-cost claims, particularly those involving injuries. This shift reflects a change in the risk profile of traffic accidents and a growing financial burden associated with more severe incidents.

The FSA emphasised the importance of strengthening road safety measures and promoting safe driving practices to reduce material and human losses. While insurance plays a key role in mitigating financial risks, it cannot offset the emotional impact of fatalities, underscoring the need for adherence to traffic regulations and greater social responsibility.

Insurance companies record only accidents in which the responsible party holds a valid insurance policy. Cases excluded under motor insurance policies, such as driving under the influence of alcohol or drugs, driving without a licence, or driving without valid insurance, are not included in the data.