MUSCAT: Oman’s Financial Services Authority (FSA) has clarified that no insurance company has been authorised to raise premiums on mandatory third-party vehicle insurance, following reports of price hikes by certain providers. In its latest public statement, the regulator firmly reiterated its position that any adjustments to compulsory insurance charges must receive explicit prior approval from the Authority. The FSA emphasised that mandatory third-party insurance premiums are regulated to protect consumers from unjustified financial burdens and ensure fairness across the national insurance market. Insurers found to be violating these rules may face legal penalties and sanctions.
The statement serves as a reminder to all licensed insurance companies that adherence to approved tariff schedules is a legal requirement, not a discretionary policy. Any attempts to introduce unilateral increases or additional hidden costs without regulatory clearance undermine public trust in the sector and contravene established consumer protection frameworks. The FSA warned industry players that it would not hesitate to take action against non-compliant firms, which could include fines, suspension of licences, or referral to judicial authorities for further investigation. The regulator encouraged companies to maintain transparency, uphold ethical business practices, and respect policyholders’ rights.
Consumers were also urged to remain vigilant and promptly report any instances where insurance providers attempt to impose higher rates or charge non-standard fees for compulsory third-party vehicle insurance. The FSA highlighted its commitment to address such grievances through dedicated complaint channels and assist affected individuals in resolving disputes. Policyholders were reminded to carefully review renewal notices and verify their premiums with official tariffs before making payments. Public awareness, combined with active regulatory oversight, forms a critical component in preventing unauthorised pricing practices and maintaining market integrity.
Looking ahead, the FSA affirmed that it will continue to monitor the insurance sector closely and collaborate with stakeholders to ensure compliance with national legislation. Ongoing supervisory efforts include random audits, regular reporting requirements, and periodic reviews of market conduct. By enforcing strict oversight mechanisms and fostering a culture of accountability, the Authority aims to nurture a stable and trustworthy insurance environment that serves the best interests of both consumers and industry participants. The warning reflects the regulator’s broader mandate to safeguard financial stability and promote responsible practices throughout Oman’s financial services landscape.
