Explained: Changes to Motor Vehicle Insurance Law

Muscat: The Official Gazette has published details of Royal Decree 53 / 2021 that amended some provisions of the Motor Vehicle Insurance Law in Clause (C) of Article (15).

The clause issued by Royal Decree 34/94 – “If the driver of the vehicle, whether the insured or another person who drives it with his consent, does not have a valid driving license for the type of vehicle – without having been stripped of it or withdrawn from it by virtue of an order issued by the competent authorities – or if he is under the influence of an intoxicant or a drug.” – has been replaced with:

“If the driver of the vehicle does not have a driver’s license for the type of vehicle, or if it has been judicially or administratively withdrawn from it, or if he is under the influence of intoxicating, narcotic or psychotropic substances.”

Anything contrary to the amendment or inconsistent with its provisions shall be canceled.

Article 15, subject to the amendment, regulates the payment of compensation due (according to the provisions of the law) to the third party for physical injuries, death, or material damage to his property. and/or the like, and to refrain from compensation in the cases established by law.

This amendment was in line with the principles and provisions established by law and judiciary, emphasizing the following:

1. Considering the owner of the vehicle as a third party if he was not the driver of the vehicle at the time of the accident.

2. The accident appendix covers the error committed by the driver of the vehicle and does not differentiate after this whether he is the owner or the driver.

3. The insurance company has the right to claim compensation from the driver for the third party if the driver does not hold a driving license or is under the influence of intoxication or narcotics.

The Capital Market Authority added that the right of the insurance policyholder will be not affected in the event that the driver of the vehicle has an expired driving license. “This is because failure to renew a driver’s license is considered a violation of a procedural order that a person is punished under the Traffic Law.”