Muscat, Oman - The new amendments to the unified motor insurance policy wording will take effect starting tomorrow, Thursday, 19 February, following the end of the grace period granted by the Financial Services Authority (FSA) to insurance companies to regularise their positions and complete their technical and operational readiness. The one-month period followed the issuance of the decision, as part of a regulatory approach aimed at developing the legislative framework of the insurance sector and enhancing the efficiency of the insurance protection system.

The amendments include automatic coverage for material damage caused by natural disasters and weather related events across all motor insurance policies, including mandatory third party policies. This comes in light of the climate developments witnessed in the Sultanate of Oman in recent years, reinforcing the role of insurance as an effective risk management tool, mitigating economic and social impacts, and strengthening community preparedness.

The FSA stated that the amendments, once in force, represent an important step towards enhancing confidence in the motor insurance market, reducing disputes, and improving societal readiness to address risks. They also support economic and social stability, reinforce governance and market discipline, and enhance the quality of services provided to beneficiaries in line with best regulatory practices.

The amendments also introduce mandatory timelines for claims settlement and a new provision for compensation in case of delays in vehicle repairs beyond the specified timeframe, in accordance with regulations to be issued later by the FSA. This aims to strengthen insurers’ commitment to approved timelines and reduce disputes. The new policy wording also allows affected parties the option of cash compensation based on clear regulatory controls that ensure fairness and transparency. Compensation is determined based on the lowest repair quotation from approved workshops and paid in two stages to ensure repairs are completed in line with approved standards.

In addition, the amendments expand the list of new spare parts covered under insurance to 37 items, enhancing repair quality, improving safety standards, and increasing beneficiary satisfaction.

These amendments form part of the FSA’s ongoing approach of periodically reviewing legislation and regulatory frameworks to achieve a sustainable balance between expanding insurance protection for beneficiaries and ensuring the stability and financial soundness of insurance companies, thereby supporting the sustainability of the motor insurance market and reinforcing governance across the sector.