People in Oman who have died or suffered disabilities due to illness or accidents can have the remainder of their loans paid by their insurance companies, according to a new policy that is being discussed by the Capital Market Authority (CMA).
The draft policy is currently on the CMA’s website, www.cma.gov.om
, where people can go through it and contact the authority with any changes to this policy that they feel are important.
“In order to ensure the participation of the community in the drafting of laws and regulations governing the insurance sector, we invite you to view the draft standard policy form of life insurance borrowers available on the website of the authority,” said CMA. “The draft is available from today and for two weeks in Arabic and English. You can send comments to the following email: [email protected]
.” Under the policy, called the Unified Credit Life Policy, “the insurer shall, in case of death of the insured for whatever reason during the policy validity term, pay the remaining amount of the loan as specified in the amounts reduction table as from the date of death established by the official entities,” according to the draft regulations proposed by the CMA.
In addition, should the insurer suffer a permanent total disability, either due to accident or sickness, compensation will be provided for the person, from the date of diagnosis, which determines the cause of the disability.
“Compensation shall be for permanent total disability from the date of occurrence of accident or diagnosis of the disease if the disability is a direct result of accident or disease occurring after the commencement of the policy, provided the percentage of permanent disability is no less than 100 per cent under decision of the competent medical committee.
In the case of partial disability, “compensation shall be for partial permanent disability from the date of occurrence of accident or diagnosis of the disease that resulted in the partial permanent disability that reduces the ability of the insured to practice his life normally and affects his ability to earn provided the same is established by medical report issued by the competent medical committee. If the percentage of permanent partial disability is 75 per cent or more, the compensation shall be for the remaining amount of the loan as stated in the loan reduction table.”
The CMA added that people between the ages of 16 and 64 years were entitled to be covered under this policy, which can also be cancelled, either if the loan held by the person in question has been cancelled, or if he has taken out another insurance policy, once his current policy, which is under the CMA’s insurance scheme, has ended.
Insurance coverage can also end if the insurance policy term has expired or has reached the date of policy cancellation, if the beneficiaries of those insured have received all of their insurance compensation payments, owing to death or disability, if the insurance premiums have been refunded, if the entirety of the loan has been paid off early, or if another person has agreed to shoulder the loan payments.
However, if the borrower has taken out a loan of OMR 50,000 or more, “the borrower shall provide the insurance company with a medical checkup showing his health conditions. The insurer may exempt the borrower from this condition. Where the borrower reaches 50 years of age or more, the borrower shall provide a medical checkup showing his health condition. The insurer may exempt the borrower from this condition,” added the Capital Market Authority.
Locals and expats in Oman welcomed the new move, with Mohammed Zaeem, the general secretary of the Pakistan Social Club saying, “This country makes sure that everyone, despite the circumstances they are facing, is treated and looked after well. That’s a trait of a great nation and that’s what makes the Sultanate of Oman so unique. With the ease of health insurance, many people can at least keep their health in check and if that is in order, things will eventually fall back into place. We all really need to appreciate all the efforts the government and the officials of Oman are taking for its people and not differentiating between the locals and the residents here.”
Faisal Al Balushi, an Omani national, said, “As an Omani, I feel that health insurance is the right of every single individual living in our motherland. I am extremely happy to know that the decision makers of our country are taking the need of health insurance into consideration while taking decisions without putting any conditions. I am sure this will be regarded as a positive step towards the improvement of people’s lives in Oman.” To get in touch: [email protected] / [email protected]