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
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
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