New rules in Oman force insurers to pay drivers when car repairs overrun deadlines

Dubai: Insurance companies in Oman will be required to pay cash compensation to motorists if vehicle repairs following an accident exceed a defined timeframe, under new rules introduced by the country’s financial regulator.

The reforms, announced by the Financial Services Authority, amend the unified motor insurance policy and are aimed at improving service standards, protecting policyholders and reducing long-standing disputes between insurers and customers.

Under the revised regulations, insurers must complete vehicle repairs within 30 days from the date an accident file is formally finalised. If that deadline is missed, companies will be obligated to compensate vehicle owners financially for each additional day of delay, unless the insurer can demonstrate that the delay was caused by exceptional circumstances beyond its control.

The daily compensation rate will be calculated according to conditions and controls that will be issued separately by the authority, the regulator said.

In a further effort to tighten oversight, the amendments introduce new controls on how repair-related payments are disbursed. Insurance payouts for vehicle repairs will now be made in two stages: 70 per cent of the approved amount will be paid before repairs begin, with the remaining 30 per cent released only after the work has been completed.

The authority said this structure is intended to prevent misuse of funds, ensure repairs are carried out to approved technical standards, and reinforce accountability across the repair process.

Beyond consumer protection, the regulator linked the changes to broader safety objectives, noting that delays and substandard repairs can leave damaged vehicles on the road longer than necessary or returned to service without proper technical compliance.

Insurance companies have been granted a 30-day grace period from the date the amendments are published to implement the new requirements and complete any operational or technical adjustments.