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.
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