MUSCAT: Amendments to the unified motor insurance policy wording came into force on Thursday, following the expiry of a one-month grace period granted by the Financial Services Authority (FSA) to insurance companies to regularise their positions and complete technical and operational readiness.
The amendments introduce automatic coverage for material damage caused by natural disasters and weather-related events across all motor insurance policies, including mandatory third-party insurance.
The move comes in response to recent climatic developments in the Sultanate of Oman and reinforces the role of insurance as an effective risk management tool to mitigate economic and social impacts and enhance community preparedness. According to the FSA, the amendments represent a significant step towards strengthening confidence in the motor insurance market, reducing disputes and improving societal readiness to address risks.
They also aim to support economic and social stability, enhance governance and market discipline and improve the quality of services provided to beneficiaries in line with best regulatory practices.
The revised policy wording sets mandatory timelines for the settlement of claims and introduces compensation provisions in cases where vehicle repairs are delayed beyond the specified period. Detailed regulations governing these timelines will be issued separately by the FSA.
The amendments also allow affected parties to opt for cash compensation under clear regulatory controls to ensure fairness and transparency. Compensation will be calculated based on the lowest approved repair quotation and paid in two stages to ensure compliance with repair standards.
In addition, the amendments expand the list of new spare parts covered under insurance to 37 items, a move expected to enhance repair quality, improve safety standards and increase beneficiary satisfaction.
The FSA said the changes form part of its ongoing efforts to periodically review and update legislation to strike a sustainable balance between expanding insurance protection and maintaining the financial stability of insurance companies, thereby supporting the long-term sustainability and governance of the motor insurance sector.
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