The Capital Market Authority (CMA) has announced the formation of a joint team to assess the damage caused by Cyclone Shaheen with a view to evaluating the overall exposure to the insurance industry from compensation claims.
The sector regulator said in a statement that the measure follows meetings held by CMA Executive President Shaikh Abdullah Salim al Salmi with representatives of insurance companies in the wake of the Shaheen disaster.
It is also in line with the mandate of the Ministerial Committee tasked with assessing and mitigating the damage inflicted by floodwaters on the properties of citizens located in the governorates directly impacted by the storm.
At the latest meeting held earlier this week, the CMA underlined the role of insurance companies in the handling of claims submitted by businesses, organisations and individuals who hold some insurance coverage against natural calamities.
It called upon insurance companies to deploy all necessary resources to facilitate the speedy processing and settlement of the claims of insurance policyholders in the wilayats affected by Cyclone Shaheen.
Such claims may pertain to home insurance, motor vehicle insurance or other types of insurance cover.
With regard to motor insurance coverage, the Authority noted: “The motor comprehensive insurance policy covers natural calamities and the third party insurance policy covers natural calamities in case the policyholder adds this service to the insurance as optional benefit when concluding the insurance contract.”
The CMA instructed the insurance companies to open multiple channels through their offices and branches and employ modern technology to receive and decide in the claims to ensure swift compensation for those who incurred damage.
It also urged the insurance companies to exercise their “social responsibilities and support the local communities through the customers who incurred damage due to the Tropical Cyclone Shaheen and this is the suitable time for all private sector companies to support the community.
“Thus, a team was constituted comprising representatives from the CMA and the insurance companies to assess the damage and collect data on the policyholders who incurred damage to assess and evaluate the situation,” the Authority added.