RO 108 Million Paid by Insurers for Damage Caused by Cyclone Mekunu

Muscat, Insurance companies have paid RO

108 million for the damages caused by Cyclone Mekunu in the

Governorates of Dhofar and Al Wusta last May. The number of claims

was 762 according to the latest data released by the Capital Market

Authority (CMA).

The data showed that properties insurance took the largest

share of the gross indemnities at 61% for 412 claims for losses at RO

66 million, followed by engineering insurance at 31% and RO 33.4

million for 91 claims. Motor vehicle claims took about RO 679,000

against 206 claims.

The data showed that the losses caused by Cyclone Mekunu

relating to properties include homes insurance and other properties,

which is evidence of the importance of home insurance against the

risks of natural calamities and fires, as well as the importance of

awareness of the risk the properties are exposed to hedge their impact

on the wealth and to provide peace of mind for the members of the

community.

On the other hand, the Omani insurance market was able to

absorb greater risks of motor vehicle insurance by expanding the

insurance cover of the comprehensive insurance policy to cover natural

calamities after the experience of the Cyclone Gonu in 2007. An option

is allowed for third party insurance to pay an additional premium to

cover natural calamities, which resulted in better management for the

Cyclone Mekumu in Dhofar and Al Wusta.

The basic role of insurance is to mitigate the financial losses the

community is exposed to for provision of security to practice the

commercial activities and better risk management to encounter any

unexpected developments in the future, which would enhance

business environment and allow for economic stability.

CMA held an emergency meeting with the managements of

insurance companies immediately after the end of the Cyclone Mekunu

to discuss the facilities the companies would provide for their clients

who suffered damage. A circular was issued urging insurance

companies and brokers to ease and facilitate compensation processes.

Source: Oman News Agency

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