Oman: Insurers cannot deny EV coverage, says FSA
Muscat – The Financial Services Authority (FSA) has directed insurance and takaful companies not to refuse coverage for electric vehicles (EVs), following reports that some firms were denying policies for such vehicles in violation of existing laws.
In a circular, the FSA stressed that insurers are obligated to comply with the Motor Vehicle Insurance Law, which prohibits refusal of insurance or policy renewal for vehicles that meet the requirements of the Traffic Law.
The directive follows observations that some insurers were excluding EVs from coverage, a breach of Article (2)(b) of the Motor Vehicles Insurance Law, promulgated by Royal Decree No 34/94. The article states that insurers may not deny cover for vehicles that satisfy the legal requirements for operation on public roads.
The FSA clarified that compulsory insurance applies to all vehicle types without exclusion. It called on insurers to address technical concerns – such as the availability of spare parts – through appropriate underwriting and pricing policies. The FSA also noted that companies may offer cash compensation in cases where spare parts or specialised garages for EVs are unavailable, but without affecting the beneficiary's right to coverage.
© Apex Press and Publishing Provided by SyndiGate Media Inc. (Syndigate.info).
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