The Executive President of the Capital Market Authority (CMA) has issued a decision imposing a fine of RO 10,000 fine on Takaful Oman Insurance Company for breaching Table (b) of the Standard Motor Insurance Policy Schedule, which resulted in misleading some policyholders of the existence of insurance coverage for personal accidents in the compulsory insurance cover in addition to changing certain terms in Table (b) of the Policy Schedule. The CMA obliged the company to compensate the policyholders who suffered damage due to the breaches of the company.
CMA issued the Standard Motor Insurance Policy to regulate the relationship between policyholders and insurers to maintain the rights and obligations of the parties to reduce disputes. The personal accidents addendum is a crucial service in the motor insurance package and is a basic benefit in the comprehensive insurance and optional benefit in the compulsory insurance. A large portion of motor vehicle owners are keen to add this benefit to hedge against the expected risks while driving.
CMA calls on all insurance companies and brokers to comply with the legal and professional provisions when rendering the insurance service to the customers so as to avoid legal consequences and urge the policyholders to contact customer service departments in the insurance companies and the Institutional Services Department of the CMA in case of queries and complaints relating to the insurance services
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