OMAN Law and Practice Contributed by: Abdulredha Al Lawati, Zainab Al Lawati, Daniyal Khalid and Aoun Al Zadjali, ALC Lawyers & Counsel
international counsel and is licensed to practice before the Omani Primary Courts.
ALC Lawyers & Counsels Office 331 3rd Floor Al Fardan Heights Way No. 61 Al Maaredh Street Ghala PO Box 3349
PC 130 Al Azaiba Sultanate of Oman Tel: (968) 22070930 Email: Admin@alc-firm.com Web: www.alc-firm.com
1. Key Drivers and Resolution of Insurance Disputes 1.1 Common Triggers of Insurance Disputes Regulated and Standardised Lines The principal drivers of insurance disputes in Oman differ materially according to whether the policy word- ing is prescribed by regulation or individually negoti- ated. In motor insurance, the Unified Motor Insurance Policy standardises the main terms of cover, so dis- putes frequently concern quantum and claims assess- ment, including repair costs, depreciation, total-loss valuation and the appropriate basis of settlement. Third-party claims more commonly concern liability and the quantum of bodily-injury or property-dam- age compensation. The 2026 amendments, including natural-disaster cover and more prescriptive claims- handling requirements, have increased the practical importance of valuation and settlement issues. Health insurance presents a different profile. Under the Unified Health Insurance Policy and the Dhamani framework, disputes more commonly concern wheth- er treatment or medical expense falls within cover, including medical necessity, pre-existing conditions, exclusions, benefit limits, pre-authorisation, eligibility and provider-network arrangements.
Commercial, Marine and Project Risks In marine cargo, construction and engineering, energy, property and other substantial commercial risks, dis- putes focus more heavily on coverage interpretation. Policies may contain multiple schedules, endorse- ments, warranties, extensions, deductibles and sub-limits, making the scope of the insuring clause, causation, exclusions, policy conditions, notification, aggregation, business interruption and the interaction between different provisions recurring issues. Articles 58 and 60 of the Insurance Companies Law are par- ticularly relevant where international policy forms are adapted or translated for issuance in Oman. Recent Trends Marine and cargo issues have become more promi- nent during 2026 as regional geopolitical disruption has affected shipping routes. War and sabotage pro- visions, delay and deviation, territorial restrictions, sanctions, cargo accumulation and consequential loss are receiving closer scrutiny, particularly where com- mercial disruption does not itself amount to insured physical damage. 1.2 Role of Policy Wording and Drafting Standardised Wordings Policy wording is a significant source of insurance disputes in Oman, although the issue varies by class.
200 I NSURANCE L I T IGATI O N 2026
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