Insurance laws Oman
Oman’s insurance sector is governed by a comprehensive legal and regulatory framework designed to ensure financial stability, consumer protection, and alignment with international standards. Below is an overview of the key components of Oman's insurance laws:
🏛️ Regulatory Authorities
Capital Market Authority (CMA):Established by Royal Decree 80/98, the CMA is the primary regulatory body overseeing the insurance industry in Oman It is responsible for licensing insurers, enforcing regulations, and promoting market integrity
📜 Key Legislation
1. Insurance Companies Law (Royal Decree 12/1979)
This foundational law regulates the establishment and operation of insurance companies in Oma. It has undergone several amendments to address evolving market dynamics and ensure robust oversigh. Notably, Royal Decree 44/2021 introduced significant changes to enhance regulatory effectivenes.
2. Unified Healthcare Insurance Policy (Dhamani)
Introduced in March 2019, Dhamani mandates basic health insurance coverage for private sector employees, residents, and visitor. The policy stipulates minimum benefits, including inpatient and outpatient care, with annual coverage limit. Employers are required to provide this coverage for their employees and dependent.
*Life Insurance: Provides financial protection to beneficiaries upon the policyholder's deah.
*General Insurance: includes property, motor, liability, and marine insurane.
*Health Insurance: As per Dhamani, offers basic medical coverage for employees and their familis.
*Takaful Insurance: Islamic-compliant insurance products operating on principles of mutual assistance and shared responsibiliy Royal Decree 11/2016 promulgated the Takaful Insurance Law, establishing the legal framework for such operatios.
💼 Regulatory Developments and Innovations
*E-Insurance Regulation: In October 2023, the CMA introduced regulations for e-insurance, allowing insurers and brokers to conduct business through electronic platfom.This move aims to enhance accessibility and efficiency in the insurance maret.
*Bancassurance Regulation: Also in October 2023, the CMA issued guidelines governing bancassurance, ensuring clear delineation of responsibilities between banks and insurers in the distribution of insurance produts.
⚖️ Legal Considerations for Insurers
*Arabic Language Requirement: Article 60 of the Insurance Law mandates that all insurance policies be issued in Arabic or accompanied by a certified Arabic translato.In case of disputes, the Arabic version prevals.
*Policy Exclusions: Article 58(5) stipulates that arbitrary conditions in policies, whose violation does not cause the insured event, are vi. insurers must clearly link exclusions to the circumstances of the claim to enforce team.
*Subrogation Rights: While not codified in the general Insurance Law, subrogation rights are recognized in specific contexts, such as marine and motor vehicle insurac. Each case requires careful legal examination.
📊 Capital and Solvency Requiremets
Insurers in Oman must maintain minimum paid-up capital: OMR 5 million for life insurers and OMR 3 million for non-life insues. These requirements are designed to ensure financial stability and protect policyholers.
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