MUSCAT -- The Capital Market Authority (CMA) is endeavouring to effect a unified agreement on insurance card for motor vehicles in Arab countries, Yahya bin Said al Jabri, Executive President of the Capital Market Authority said in a statement yesterday. He added that national insurance companies in last December signed a memorandum and articles of association for setting up a company to issue the orange card to extend third party liability insurance cover outside the Sultanate.
The Omani Unified Orange Card Firm was established and the constitutive meeting will be held on April 7, which will be attended by member companies to elect the chairman and members of the board of directors. The capital of the new firm is RO 500,000, which is divided among seven national insurance companies. The marketing of the card will be through the insurance companies who are members of the firm and the branches of Arab insurance companies.
The company will co-ordinate the procedures for the issue of insurance policies for vehicles departing the Sultanate and settlement of claims and indemnities in respect of vehicles registered in the Oman involved in traffic accidents abroad. It will also co-ordinate the procedures in respect of non-Omani vehicles holding the Orange Card and involved in traffic accidents in the Sultanate.
The system will facilitate Omani vehicles entering other Arab countries without payment of premium at each check point as most of the Arab countries accept the card, which will save time and cost. Peer companies (unified firms) will settle claims in each country without need to wait for approval of the policy issuer company, facilitating speedy payment of claims and preserve the rights of those who incur damage in traffic accidents. The enforcement of the system for insurance coverage outside the borders will be through the orange card.
By Business Reporter
© Oman Daily Observer 2007
