The Oman Financial Services Authority issued an administrative decision approving amendments to the Unified Motor Insurance Policy Model that introduce automatic cover for material damage to insured vehicles from natural disasters and climatic events across all motor policies, including compulsory third party motor insurance. The package also adds claims settlement timeframes, simplifies procedures, and introduces new rules on repair delays and cash settlement. The revised policy adds an addendum covering loss or damage to material property from natural disasters declared by competent authorities, with compensation capped at OMR 5,000 per vehicle after the deductible and a coverage reactivation amount. Market value is assessed based on the vehicle’s value before the event under conditions set by the FSA, with separate compensation approaches for total or constructive total loss depending on whether the vehicle’s market value is below or above OMR 5,000 and whether the policyholder retains salvage; partial losses are covered for repair costs up to OMR 5,000 based on a report from an FSA-licensed loss adjuster. The addendum sets exclusions including damage to property inside or outside the vehicle, traffic accidents unless caused by a natural disaster, vandalism, fire, intentional acts or theft, leaving vehicles in wadi channels or on roads subject to Royal Oman Police warnings, deliberate exposure to flood risk, non-Omani registration plates, and driving after disaster-related damage occurs. Separately, the amendments allow policyholders to opt for cash compensation for accident damage instead of insurer-managed repairs, calculated using the lowest approved workshop quotation and paid in two instalments (70 per cent before repair and 30 per cent on completion), and expand to 37 the list of consumable spare parts that must be replaced with new parts without depreciation. Insurers must implement the amendments within 30 days of publication. Daily cash compensation for repair delays beyond 30 days from completion of the accident file will apply under regulations to be issued by the FSA, with specified carve-outs such as authorised-dealer parts unavailability or customer-related delays.

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