Muscat - The amended motor insurance policy in the Sultanate will take effect soon. "Companies will have to implement the new policy within 30 days (effective from February 16)", said Qais Saeed Saleem al Suhai, (pictured) senior specialist, valuations and risk surveillance department at Capital Market Authority The new insurance policy is aimed at focusing on transparency among the parties involved and helping limit the disputes based on different interpretations.
It will also offer additional insurance benefits and protection cover to the policyholders.
The unified motor insurance policy affects the greatest segment of policyholders as it represents around 44 per cent of the total insurance policies offered in Oman.
It may be noted that the insurance sector in the Sultanate has witnessed several legislative and regulatory developments in line with the best international practices.
It also achieved a growth of 14.8 per cent on average in the past few years with insurance premiums to be estimated at RO 0.5 billion as per the unaudited financial statements of 2015.
The amendments:
First: Definitions
• Depreciation was defined to include the party who suffer damage
• New definition for no claim discount was added "Deduction of certain amount from the premium of the policy inconsideration of no claim paid or payable for the previous insurance term"
• Definition for natural disasters to include floods, wadis, cyclones, hurricanes storms and hail.
• Definition of consequential loss: indirect loss not directly resulting from the insured accident and occurring later.
• Definition of Prime Mover: A vehicle connected or able to be connected to a trailer or more and together form one unit.
• Definition of Trailer: A vehicle without engine designed to be hauled or tracted by a motor vehicle.
Definition for date of completion of accident file:
The date the person causing the accident does the following:
• Pay the prescribed excess amount.
• Insurer receives the vehicle
• Insurer supplied copy of vehicle registration certificate and driving licence
• Minor accident form in case of minor accident
• ROP technical inspection report in case of gross accident or minor accident where necessary.
• Letter from financier or mortgagee (if any)
• Any documents the insurer requires provided request is made on reporting the accident.
• The requirements apply on the person who incur damage except payment of excess amount
• Definition of insurance premium: The amount paid by the insured to the insurer for bearing the covered risk.
Second: Proposal Form
• New words were added including permanent address, Governorate, Wilayat, city, village as well as marital status (optional), educational qualification (optional) type of driving licence light/heavy/equipment/motorcycle.
• The item on vehicle type was amended to include private/taxi/rent a car/driving school/bus/ Small Truck/ Large Truck /equipment/ambulance/motor vehicle/motorcycle/bicycle/prime mover/trailer/special purpose vehicle/ Other
• New item was added on the changes and modifications on the vehicle in accordance with law the value of each modification.
• Number of persons authorised to drive the vehicle was amended (optional): Names of persons authorized to drive the vehicle should be mentioned without limitation if insured is desirous of obtaining additional discount in premium.
The Insurer has no right to refuse settlement of any claim on the grounds that the driver is not listed among those authorised to drive the vehicle. The Excess specified in the Policy Schedule No (11) shall apply.
The Schedule on period and type of insurance was changed as follows:
1. Compulsory Insurance only
2. Compulsory Insurance plus (select the appropriate cover):
• Personal Accident addendum
• Natural disasters
• Fire/theft/robbery only to vehicle's body
• Intentional act by third party (only when in use)
• Civil liability towards third parties during operation or at work site
Comprehensive Insurance covering:
• Compulsory Insurance -- Damage and loss except work site
• Personal accidents addendum
• Please check appropriate cover
• Damage and loss at work site
• Civil liability towards third parties during operation or at work site
• Table 2- b was deleted from the policy.
Additional benefits Schedule was amended in the following items:
Item (1) amended: Change of spare parts with new original parts after first year without paying depreciation on new parts.
Item (2) amended: Repair at agency with new original parts after first year without payment of additional amounts.
Item (5) deleted.
Item (6) amended: Substitute vehicle throughout repair term.
Item (8) amended: Cash compensation for consequential loss at RO -- for each day of stoppage.
New Item (9) added: Damage, loss and third party liability for commercial vehicles except equipment at work site.
New item (10) added: Increase transportation and protecting costs at RO --
New item (11) added: Increase indemnity amount specified in the personal accidents addendum to RO 15,000/20,000/25,000
Third: Policy Schedule:
• Item (4) on usage to: private/commercial
• Treatment expenses item amended to: for each passenger.
• No claim item as per Schedule (3)
• An item on number of persons authorized to drive the vehicle added.
Fifth: Insurance against loss and damage:
Clause (5) amended: The Insurer shall bear the cost of protecting and transporting the vehicle to the nearest repair workshop in the area in which the loss or damage has occurred, subject to the costs not exceeding RO 100, unless they agree in writing on higher amount in the additional benefits.
Sixth: Compulsory Insurance
The following expression has been deleted from Clause First/1/a" unless judicial authorities consider the injury to the employee is included under an insurance cover in accordance with any other law or under Workmen's Compensation Policy."
Seventh: General Exceptions:
New paragraph added to Clause (2): In determining liability towards third party, the Insurer shall not be liable for any damage of whatsoever nature directly resulting during and because of the operation of the insured vehicle especially in drilling, lifting, construction works, agriculture or in any other similar works, unless agreed to cover the same under additional benefits. Driving of the vehicle from and to the operation site shall not be considered as operating under this clause.
Eighth: Amendment of the Chapter on expenses of medical emergency services:
The name of the chapter has been changed to Medical Emergency Services Expenses which provides "The Insurer shall bear the cost of medical emergency services provided by ambulance crews working for the Public Authority for Civil Defence and Ambulance at fixed amount of RO 400 for any single accident."
Ninth: Amendments in the Chapter on General Conditions:
• Clause 4/b: "The Insured may cancel the provisions of Chapter Two of this Policy by written notice to be delivered or sent to the Insurer by registered mail and, in such a case, the Insurer shall refund to the Insured the premium paid less the premium duly calculated on short-period rates specified in Schedule 4 of Appendix 1 of this Policy; provided that in both the aforementioned cases no claim has arisen during the validity of the Policy. Exempted from the foregoing shall be the case where the vehicle is insured at a value higher than the actual value, the insurer's obligation is limited to pay the difference in indemnity. The insured's right in recovering the premium shall be forfeited and shall pay the agreed excess."
• Clause 4/e added: "The insurance of inspection plates for new vehicle shall expire forthwith issuance of new policy in the name of the owner and received the vehicle."
• Clause 7/d amended: "The Insurer shall bear 50 per cent of these expenses up to the maximum amount stated in Item d of Clause 13 "Restrictions on Use" in the Schedule of this Policy."
• Clause 8 amended: "The holder of a comprehensive insurance Policy may directly claim from the Insurer the indemnity for the damage sustained by his vehicle as a result of an accident caused by another vehicle(s). Then, the Insurer shall claim the paid amount from the insurer of the other vehicle which caused the accident where there is no insurance contract or not covering such liability. In such case the Insured shall not lose the no claim discount because he has not caused the accident, and shall not be bound to pay the excess on recourse."
• Clause 13 amended: "The Royal Oman Police is the competent authority responsible for issuing inspection reports of the vehicle damaged by an accident. In case of discrepancy regarding the causes of invisible damage sustained by the vehicle which the inspection report does not specifically determine whether or not they are attributable to the accident, the vehicle shall be sent to the concerned Agent or to inspection department of ROP to determine whether such damage was caused by the accident or are due to wear and tear. If such damage is caused by the accident, the Insurer shall bear all costs; and if not, the owner of the vehicle shall bear the cost of inspection and repairs. If the Agent is unable to determine the cause of damage, the inspection report shall prevail and it shall be binding on all parties."
• Clause 16 amended: "In case of insurance of equipment or commercial vehicles used in drilling or construction, etc the Insurer shall offer other insurance options that cover the risks of such equipment when used at the work site and get a written approval or refusal from the owner of the equipment in the Proposal Form as per Schedule No 2 -- Second . If such equipment are sold by instalments, the approval of the financing company or bank (mortgagee) must be obtained."
• New Clause 21 added: Basis for computation of spare parts:
a) If the age of the damaged vehicle is more than one year, parts used for repair shall be original and new of the same type and age of the damaged vehicle and fit for use without deduction or depreciation.
b) If used parts are not available the insured shall provide original new parts without deduction of any depreciation.
c) Where the insured or the person who suffers damage is desirous of installing new parts to replace the damaged parts though the parts are available the insured shall deduct depreciation on such parts.
d) Where the insured is desirous of repairing the vehicle at the agency with original and new parts the insured may receive the difference between the concerned workshop and the additions of the agency.
Second on Insurance to Third Party amended: "The Insurer responsible for the accident shall be liable to pay the market value of the vehicle or its value as per Item (3) First of Article 24 of Chapter Six , whichever is higher."
Schedule 5 List of spare parts which, if damaged by a road traffic accident, shall be replaced with new parts from the concerned agency without deducting any depreciation by adding airbags and tyres to the list.
Injuries in the table means:
Jaifah: Resulting in penetrating wound in a hollow organ.
Alamah: That reaches the endocranium
Al Nafithah: Resulting in penetrating wound in non- hollow organ
Al Damighah: Reaching the brain
Al Hashimah: Crushing the bone without dislocation
Al Munqillah: If fractured the bone and dislocate it.
Al Muwadhihah: Bone clearing wound
• Clause (2) of the Appendix was deleted.
© Oman Daily Observer 2016
