MUSCAT — Oman’s Financial Services Authority (FSA) has introduced mandatory compensation for delays in vehicle repairs under amendments to the unified motor insurance policy, as part of efforts to improve service quality and protect policyholders.

Under the revised rules, insurance companies must pay cash compensation to vehicle owners if repairs are not completed within 30 days from the date the accident file is finalised, unless the delay is caused by exceptional circumstances, the Financial Services Authority said.

The compensation will be calculated on a daily basis for each day of delay beyond the specified timeframe, according to conditions and controls to be issued by the authority.

The measure aims to ensure timely repairs, reduce disputes between insurers and customers, and prevent prolonged inconvenience to policyholders whose vehicles remain off the road, the regulator said.

The amendments also introduce stricter controls to prevent misuse of compensation funds. Payments related to vehicle repairs will be disbursed in two stages, with 70% of the approved amount paid before repairs begin and the remaining 30% released after repairs are completed.

The authority said the changes are designed to raise safety standards by ensuring that accident-damaged vehicles are repaired to approved technical specifications and within reasonable timelines.

Insurance companies have been given a 30-day grace period from the date of publication to implement the new requirements and complete the necessary operational and technical adjustments.

The FSA said the amendments form part of a broader regulatory review aimed at strengthening governance in the insurance sector, enhancing consumer confidence, and improving the overall efficiency of Oman’s motor insurance market.