Monday 19 / January / 2026
MUSCAT: Material damages to insured vehicles resulting from natural disasters and adverse weather conditions will now be automatically covered under all motor vehicle insurance policies — including compulsory third-party insurance — following new amendments approved by the Financial Services Authority (FSA).
The updated Unified Motor Vehicle Insurance Policy introduces a package of benefits aimed at expanding insurance protection for vehicle owners and enhancing the quality of services provided by insurance companies.
Among the key improvements are clearly defined timeframes for the settlement of insurance claims, along with simplified procedures designed to ensure faster and more efficient processing.
The Authority said it has worked in coordination with insurance and reinsurance companies to regulate the cost of the new natural disaster coverage in line with the expected level of risk.
The amended policy also includes the introduction of a compensation clause for delays in repairing insured vehicles beyond the specified time limits, in accordance with controls to be issued later by the Authority.
In another major enhancement, policyholders will be given the option to receive cash compensation equivalent to the value of damages caused by an accident, instead of having the insurance company carry out the repairs.
The list of consumable spare parts that must be replaced with new ones — without any depreciation deduction — has also been expanded, bringing the total number of such parts to 37.
Insurance companies have been granted a 30-day period from the date of publication of the decision to implement the new amendments, allowing sufficient time to complete technical and operational requirements and ensure smooth execution.
Commenting on the development, Abdullah Salim Al Salmi, Chief Executive Officer of the Financial Services Authority, said the amendments are part of the Authority’s continuous review of the legislative and regulatory framework governing the insurance sector.
He added that the move reflects the FSA’s commitment to enhancing the efficiency of the motor insurance market and ensuring the delivery of high-quality insurance services that meet public needs and align with current market requirements.
