Oman - CMA Launches E-service for calculation of Total Loss Compensation
Monday, 06 15 2020, Category: Insurance and Reinsurance, Country: Oman
The Capital Market Authority (CMA) announced launching new insurance e-service related to specifying the value of vehicle subject to total loss due to traffic accident.
The move comes as part of CMA’ endeavours to automate the services provided to participants of the capital market and insurance sector to ease the processes and to save time and effort together with the quality of the service.
The importance of the system emanates from the awareness of the vehicle’s owner of the value of the vehicle if subjected to total loss as per the annual depreciation ratios approved by the CMA in the Standard Motor Vehicle Insurance Policy.
The policy sets out in the claims settlement annexure and basis of depreciation that calculation of total loss in comprehensive and compulsory insurance is by calculating the depreciation of the first month at 1.25% and 15% at the end of the first year, 28% at the end of the second year, 38% at the end of the third year and 48% at the end of fourth year and so on until the fourteenth year and thereafter whereas the percentage will be 80% according to Table (1) for private vehicles. As for commercial vehicles, the percentage is fixed at the tenth year and thereafter at 80% as per Table (2) of First Annexure of the Policy.
Motor insurance comes in the second place in the insurance portfolio at 26.7% with gross underwritten premiums at RO129.8 million while the paid claims by insurers were RO95.5 million.