MUSCAT: The Capital Market Authority (CMA) has announced the launch of a new insurance e-service for computing the value of a vehicle subject to total loss in a traffic accident. The move comes as part of CMA’s endeavours to automate the services available to the insurance sector.
To utilize this e-service, the owner must be aware of the value of the vehicle to be written off based on annual depreciation ratios approved by the CMA in the Standard Motor Vehicle Insurance Policy.
The policy sets out in the claims settlement annexure and basis of depreciation that calculation of total loss in comprehensive and compulsory insurance is by calculating the depreciation of the first month at 1.25 percent and 15 percent at the end of the first year, 28 percent at the end of the second year, 38 percent at the end of the third year and 48 percent at the end of the fourth year and so on until the fourteenth year and thereafter the percentage is 80 percent according to Table (1) for private vehicles. For commercial vehicles the percentage is fixed in the tenth year and thereafter at 80 percent as per Table (2) of First Annexure of the Policy.
Motor insurance is the second more important segment of the insurance business, accounting for 26.7 percent of the total portfolio with gross underwritten premiums totaling RO 129.8 million in 2019, while claims paid by insurers were RO 95.5 million.