FSA Approves Amendments to Unified Motor Vehicle Insurance Policy

New Motor Insurance Amendments Expand Coverage and Improve Claims Procedures

Muscat: The Financial Services Authority (FSA) has issued a decision approving new amendments to the Unified Motor Vehicle Insurance Policy, introducing a package of benefits and enhancements aimed at expanding insurance protection for policyholders and improving the quality of services provided.

The amendments include setting specific timeframes for claims settlement and streamlining related procedures. The updated policy also provides automatic coverage for material damage to insured vehicles resulting from natural disasters and weather conditions, applicable to all motor vehicle insurance policies, including compulsory third-party insurance.

In coordination with insurance and reinsurance companies, the Authority has regulated the cost of this new coverage in line with the expected level of associated risks.

The amended policy further includes a compensation clause for delays in repairing insured vehicles beyond the specified timeframes, in accordance with controls to be issued later by the Authority. In addition, it introduces the option of cash compensation for the value of damages resulting from accidents, allowing policyholders to receive financial compensation instead of having the insurance company carry out vehicle repairs.

The amendments also confirm an update to the list of consumable spare parts that must be replaced with new parts without any depreciation deduction, increasing the total number to 37 parts.

The decision grants insurance companies a 30-day period from the date of publication to implement the new amendments, providing sufficient time to complete the necessary technical and operational requirements and ensure smooth implementation, market readiness, and the protection of the rights of all parties.

Abdullah Salim Al Salmi, Chief Executive Officer of the Financial Services Authority, affirmed that the new amendments come within the framework of the Authority’s approach based on the continuous review of the legislative and regulatory structure of the insurance sector and ensuring adequate insurance coverage.

He noted that this reflects the Authority’s fundamental role in evaluating the efficiency of existing regulatory practices and developing the motor vehicle insurance market, enhancing its efficiency in line with current requirements and the public’s need for high-quality insurance services.