Muscat – The Financial Services Authority (FSA) has approved new regulatory amendments to the Unified Motor Insurance Policy programme, expanding coverage for policyholders and introducing measures to improve service standards across the sector.
Under Decision No 1/2026, the revised policy sets defined timeframes for claims settlement and simplifies related procedures. It also introduces automatic coverage for material damage caused by natural disasters and climatic events across all motor insurance policies, including third party cover.
FSA said it worked with insurance and reinsurance companies to ensure that the cost of the expanded cover remains aligned with assessed risk levels.
The amendments also provide for compensation when vehicle repairs exceed prescribed timelines, in line with regulations to be issued by the FSA at a later stage. Policyholders will have the option to receive cash compensation for accident-related damage instead of having their vehicles repaired by insurers.
In addition, the revised policy expands the list of consumable spare parts that must be replaced with new items without depreciation, increasing the total to 37. Insurance companies have been given 30 days from the publication date to implement the changes.
Abdullah bin Salim al Salmi, Executive President of FSA, said the amendments form part of the authority’s ongoing review of the legislative and regulatory framework governing the insurance sector. “The objective is to ensure adequate insurance coverage and enhance the efficiency of the motor insurance market in line with current requirements and public needs.”
According to Salmi, inclusion of natural disaster cover under third party motor insurance reflects a realistic assessment of climate-related impacts experienced by Oman in recent years. He added that the move reinforces insurance as a tool for managing climate risks and mitigating effects of these, supporting wider social and economic stability.
He said the changes are expected to strengthen the national social protection framework, improve preparedness for climate risks and enhance recovery following natural disasters. The amendments are also aimed at supporting financial stability for individuals and institutions.
Salmi added that FSA sought to balance broader protection for policyholders with the sustainability of insurance companies, while reducing complaints and disputes through simplified procedures and stronger regulatory governance.
Highlights
Automatic natural disaster cover extended to all motor policies, including third party
Mandatory timelines introduced for claims settlement
Compensation provided for delays in vehicle repairs
Policyholders allowed to opt for cash payouts instead of repairs
