CMA in cooperation with Oman Chamber for Industry and Commerce, Salalah branch, organized the second seminar that comes within the comprehensive awareness programme on the importance of insurance for individuals and institutions under the auspices of HE Sheikh Salim Aufit Abdullah Al Shanfari, President of Dhofar Municipality.

Opening Speech

Mr. Ahmed Ali Al Maamari, Acting Director of Insurance Supervision in his opening speech introduced the field’s position and activities in the Sultanate and the latest legislative and regulatory developments. He also talked about the challenges facing the sector and the efforts paid by CMA to overcome them. He confirmed the importance of related parties’ cooperation in order to reach highest levels of awareness in dealing with insurance as a product and as a vital part in the national economics system.

Insurance Principles and Importance

The second seminar included three papers. The first one discussed insurance principles, most important available insurance products, and regulations of Omani insurance market that was presented by Ahmed Al Harrasi. He also introduced the developments achieved by the sector in the Sultanate.

Al Harrasi also pointed to the Orange Card which is the policy covering insurance risks outside the Sultanate and within the Arabian region. This Card facilitates the required procedures for the Omani vehicles on the borders and protects the rights in accidents either of Arab countries’ vehicles entering the Sultanate, or Omani vehicles traveling to other Arab countries.

Electronic Link

He also talked about facilitating the minor accidents’ procedures as the parties have to remove the vehicle of the road without waiting for the police, and they are required to fill the minor accident form to be claimed to the insurance policy for compensation. He also talked about the electronic linking programme that forms a comprehensive database of the traffic accidents in the Sultanate, the insured parties, their vehicles, and their insurance background. It also facilitates the process of specifying risk and fair premiums, and also facilitates insurance procedures and claims settlements. 

Insurance Awareness

In the second paper, Badr Al Marzooqi, Director of Personal Insurance, Vision Insurance Company, Salalah Branch discussed the wrong practices in dealing with insurance products especially with vehicle insurance and confirmed the importance of upgrading the awareness level of the public. He said that lake of awareness results in wrong practices that have negative impact on the insured party that leads to disputes often referred to the court. He also confirmed the importance of reading the Unified Vehicle Insurance Policy that sets out the rights and liabilities of the concerned parties.  

Vehicle value reduction request  

He presented a number of wrong practices, such as; requesting a reduction in the vehicle value in order to reduce the premium, however, this would affect the settlement value in case of full damage or vehicle cancellation by ROP. The second practice is not filling the insurance request form, as the insurance company has the right to return the compensation of third party or to reject compensating damages of comprehensive insurance in case of providing false information or hiding fundamental facts. The insured is also requested to report vehicle theft to ROP and cooperate with the insurance company in finding the criminal. In case of vehicle accident or default, the vehicle should not be left alone and without taking required arrangements to avoid further damages, and if the vehicle is
moved before repairing it, any further damage to will not be considered under the insurance company’s liability.

Right of subrogation

Al Marzooqi pointed that the insured with comprehensive insurance has the right to claim damages to his vehicle caused by another vehicle insured by the same or other insurance company as the insurer shall return the amount paid by the insurer of the other vehicle. One of the wrong practices is also when ignoring adding the personal accidents addendum in the policy that covers death or physical injury of the vehicle owner, driver and their families in case of traffic accidents.  

Vehicle neglect and adventuring with it

Al Marzooqi confirmed that the insurance coverage shall be void in case of risk caused by vehicle owner like crossing wadis. The insured person should take every caution to maintain his vehicle against lose and damage and to preserve it in a good condition for use. The vehicle shall not be covered in working places where damages may occur as a direct result of using the insured vehicle in a digging, constructive, agricultural or other work activities. 

Solutions and recommendations

At the end, Al Marzooqi confirmed the importance of cooperation between concerned parties in the insurance operation to face these wrong practices. He sees that there are common roles should be played by CMA, insurance companies and the public for restricting and controlling these wrong practices. He pointed that CMA is required to increase awareness campaigns, spread insurance awareness among the community, supervise marketing programmes of insurance companies, and coordinate with responsible persons in the Ministry of Education and Ministry of Higher Education to teach insurance programmes in schools and universities.   

From his side, he sees that insurance companies are requested to cooperate in organizing campaigns for spreading insurance awareness, and advertising the various insurance programmes in a more educational way. They should also work on training the employees of the insurance departments. Finally he advises policyholders to read the articles of the purchased policy, and express every fundamental information about the insured risk, and maintain official papers such as the contract, insurance application, payment receipt and a copy of the Unified Vehicle Insurance Policy.  

The third paper by Hamed Saif Al Siyabi, was on the Unified Vehicle Insurance Policy and its amendments

Training programme for the employees of insurance companies

On the third day of the awareness programme, the training programme for operators in the insurance sector will start for two days in Salalah Garden Mall Hotel. The programme aims to enhance the employees’ abilities and equip them with required skills for their technical and administrative work which will positively impact on the service quality presented to the customers.