OMAN Law and Practice Contributed by: Abdulredha Al Lawati, Zainab Al Lawati, Daniyal Khalid and Aoun Al Zadjali, ALC Lawyers & Counsel
5.4 Cost Risk Management and Funding Solutions Oman does not presently have a developed litigation- risk-transfer market comparable to jurisdictions in which after-the-event insurance and commercial litiga- tion funding are routinely used. The principal methods of managing defence costs therefore remain conven- tional insurance coverage, contractual risk allocation and active control of the litigation itself. 5.5 AI-Driven Claims Volumes and Complaints There is presently no reliable evidence that AI-gener- ated or AI-assisted claims have materially increased insurance claims or complaints in Oman, and no developed body of publicly reported Omani litigation on the issue. AI may nevertheless affect evidential verification and insurers’ own underwriting or claims processes. For present purposes, it is better treated as a developing exposure than an established driver of claims volume. 6. Third-Party Claims and Defence Trends 6.1 Third-Party Claims and Direct Actions Direct actions are most clearly established in motor insurance. Article 13 of the Vehicle Insurance Law gives a person injured in a motor accident a direct claim against the insurer and restricts the insurer from relying against that person on defences available against the insured. Article 15 preserves third-party recovery in specified circumstances while allowing the insurer, after payment, to pursue recourse against the insured or driver. The 2026 motor amendments add a separate direct- compensation mechanism: a comprehensively insured policyholder whose vehicle is damaged by another vehicle may claim from its own insurer, which then pursues the responsible insurer or person. Outside motor insurance, the Insurance Companies Law does not provide an equivalent general direct- action right for every liability claimant. Professional, medical, employers’, construction and general liability claims therefore require consideration of the particular
statutory regime and policy. Motor remains the clear- est area in which direct action against the insurer is expressly established under Omani law. 6.2 Emerging Liability and Defence Trends Claims against insureds can involve parallel processes. Traffic accidents may generate criminal proceedings and civil compensation claims; medical-negligence matters can involve the Medical Supreme Commit- tee; and regulated businesses may face administrative inquiries alongside private claims. Defence strategy therefore requires consistency in evidence, admis- sions and positions across the different processes. Early notification and claims control are particularly important in professional-indemnity matters, where an insured’s dealings with the claimant before notifying the insurer may raise separate issues under claims- made wording or conditions restricting admissions and settlements. Construction, engineering and logistics claims can involve several contractual participants and insureds. Defence strategy therefore begins with identifying who owed the relevant duty, whether liability is contractual or independent, which parties are insured and which policy section responds. Oman has no opt-out class-action regime, but related claims and parties can be managed through ordinary joinder, intervention and connected-claim procedures. Coordinated defence remains important where one event affects multiple claimants. 7. Geopolitical Factors 7.1 Geopolitical Drivers of Insurance Disputes Geopolitical developments are increasingly relevant to Oman because of its exposure to shipping, energy and international trade. They have not yet produced a substantial body of publicly reported Omani insurance judgments; the immediate effect is instead seen in underwriting, claims scrutiny, reinsurance and inter- pretation of existing wording. Marine, aviation, energy and project risks are particu- larly exposed. Coverage remains policy- and fact-spe-
212 I NSURANCE L I T IGATI O N 2026
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