The Capital Market Authority has urged the holders of insurance policies for commercial vehicles of special use to benefit from the competition in the Omani market as there are eighteen competing companies  carrying out general insurance business which are obliged to underwrite all types of vehicles and not to exclude certain types. Commercial vehicles of special type include taxis, driving learning, rent a car, gas cylinders transport vehicles and water tankers.

Mohammed Taqi Al Jamalani, Vice President, Insurance Operations Regulation  said the insurers are obligated to underwrite all types of vehicles including commercial vehicles to meet the percentages set by CMA under Circular No. 6/2012 as amended by Circular No. 4/2013 which created competition among the insurers.

He pointed out that the clients of insurers play a great role in controlling the supply and demand basics which allow more competitive opportunities for better insurance services with regard to quality and prices. Hence, the  holders of insurance policies of commercial vehicles are required to benefit from such opportunity and  look for the 18 available insurers and examine the  insurance prices of such vehicles  which will be published in the newspapers and CMA’s website from time to time.

Al Jamalani said the activation of the supply and demand rule is related to the cooperation of the owners of special usage commercial vehicles and their keenness to examine the market and chose the best companies suitable with their financial capabilities and the required insurance service. They shall not focus on specific  insurers due to the factor of proximity to their residence or for historic relationships. He said the policyholders need to know there are now about 18 companies  and CMA would publish the prices for easier selection.

CMA has obligated insurers to underwrite specific percentage of commercial vehicles of special use to ensure the coverage and prevent selective underwriting practices.

Previously, only two insurers used to underwrite 97% of taxis which had impact on competitiveness in the market. The move aims to distribute insurance of commercial vehicles among the operating insurers and to curb the hike in prices as seen  in the statements of certain companies.