Compensation claims paid by insurance companies in Oman exceed OMR5mn

Muscat: The total amount of compensation paid for the claims by insurance companies in Oman was OMR5.19 million in the second quarter of 2021, data issued by the Capital Market Authority (CMA) shows.

This is an increase of 189 per cent compared to the same period of 2019. The total claims (paid claims and unsettled claims increased by 77 per cent this year to OMR23.31 million compared to the second quarter of 2020.

The report further stated that insurance companies in Oman reported 15,200 traffic accidents and a total of 24,800 claims in the second quarter of this year. This is an increase of 119 per cent and 121 per cent respectively compared to the first quarter of 2020.

Regarding claims recorded by insurance companies for traffic accidents, the data shows the number of claims for minor traffic accidents with financial damage remarkably increased to 16,400 in the 2021 second quarter compared to 6,500 claims in the same period last year.

This was accompanied by a huge increase in the compensations paid to redress the damages resulting from such claims. The total amount of compensation for minor accidents was about OMR2.18 million in the second quarter of 2021 compared to OMR907,000 in the same period in 2020.

Nearly 3,950 claims were recorded for major accidents and 3,340 claims for major accidents with injuries and medical treatment expenses. The number was 2,200 and 2,400 claims respectively.

The total compensation for major accidents was OMR1.52 million and the compensations for major accidents that resulted in injuries and medical treatment was OMR1.31 million.

This is a huge increase compared to 2020 which recorded a total compensation amount for major accidents with financial damage at only OMR531,000 and OMR267,000 for major accidents which resulted in injuries and medical treatment expenses.

The number of claims for major accidents that resulted in deaths was 183 claims with OMR187,000 paid as compensation. The number of major accidents that resulted in deaths in 2020 was 103 claims and OMR95,000 was paid in the same quarter of 2020.

CMA emphasises that adherence to safety requirements and traffic instruction issued by Royal Oman Police (ROP) are the best means for protection from major accidents and the resultant impact on lives and properties. The insurance service will only mitigate the financial damage, not the moral damage.