New Amendments to Unified Motor Vehicle Insurance Policy
Approved

Muscat, 19 Jan 2026 (ONA) — The
Financial Services Authority has issued a decision approving new amendment to
the Unified Motor Vehicle Insurance Policy. These amendments include a package
of benefits and advantages aimed at expanding the insurance protection system
for vehicle insurance policyholders and elevating the quality of services
provided.

The new improvements include
setting specific timeframes for claims settlement and facilitating their
procedures. The new version of the policy also includes automatic coverage for
material damages to the insured vehicle caused by natural disasters and weather
conditions as automatic coverage for all motor vehicle insurance policies,
including compulsory third-party insurance policies. The Authority has worked
with insurance and reinsurance companies to regulate the cost of this new coverage
in line with the expected level of risks.

The new policy also entails the
addition of a clause for compensation in case of delays in repairing the
insured vehicle beyond the specified timeframes, according to controls to be
issued later by the Authority. It also introduces the option for cash
compensation for the value of the damage resulting from an accident instead of
having the insurance company undertake the vehicle repair.The policy confirmed an amendment
to the list of (consumable) spare parts that must be replaced with new ones
without any depreciation deduction, bringing the total to (37) parts. The
decision granted insurance companies a (30)-day period from its publication
date as the deadline for implementing the new amendments. This is to provide
insurance companies with sufficient time to complete the necessary technical
and operational requirements and ensure the smooth implementation of the
amendments, achieving market readiness and safeguarding the rights of all
parties.

Abdullah Salim Al Salmi, CEO of
the Financial Services Authority affirmed that the new amendments to the
Unified Motor Vehicle Insurance Policy come within the framework of the
Authority’s methodology based on the continuous review of the legislative and
regulatory structure of the insurance sector and ensuring appropriate insurance
coverage.

This, he said, reflects its
fundamental role in evaluating the efficiency of existing regulatory practices
to develop the motor vehicle insurance market and enhance its efficiency in
line with the requirements of the current phase and the public’s need to obtain
high-quality insurance services.

— Ends/AH