Meeting on credit life insurance policy organised

Muscat: The Capital Market Authority (CMA) organised an introductory meeting on the standards of credit life insurance policy. It was attended by chief executive officers, life underwriting managers and compliance officers of the insurance companies and a number of employees of the CMA.

The meeting discussed the key inquiries of the insurers on the policy issued under Decision No. 4/2023 to cement the mutual understating of the policy details to ensure proper implementation by the contracting parties.

Ahmed Al Harrasi, Director of the Audit and Compliance Department said the meeting came within the awareness efforts to ensure sound implementation of the credit life insurance policy by the main stakeholders in the credit life insurance process, namely the insurers, as the partnership aims primarily at the interest of the policyholders to ensure the sustainability of the management of the companies to provide insurance coverage of the risk that require coverage by the policy.

He added the policy achieves an economic aspect in which it enhances the role of insurance in mitigating the credit risks related to providing financial facilities to the public further to the social dimension which is part of the social protection system as an important pillar in the comprehensive development programmes.

The meeting witnessed interaction on the clauses of the policy and key challenges facing the implementation process. It also emphasised the importance of educating the borrowers during the underwriting and contracting process or while filing compensation claims.