Poor up­take of prop­erty in­sur­ance de­spite storms

Oman Daily Observer - - INSIDEOMAN - FROM P13

How­ever, be­cause of a long­stand­ing mar­ket prac­tice, pol­icy-hold­ers tend to get lax in pay­ing their pre­mi­ums, while tak­ing ad­van­tage of credit terms. But when hit by a storm, they want their claims to be speed­ily set­tled in or­der to re­ha­bil­i­tate their prop­er­ties. At this point, the rein­surer points out to the in­sur­ance com­pany that the claim can­not be set­tled un­less the pre­mium is paid in full. In­evitably, the set­tle­ment process stalls at this point.”

Given the ris­ing fre­quency and grow­ing threat from nat­u­ral dis­as­ters, some in­sur­ance com­pa­nies have urged the reg­u­la­tor to make it com­pul­sory for prop­erty own­ers to pay their pre­mi­ums up­front when ob­tain­ing cov­er­age for their hold­ings.

“This mea­sure will help all the par­ties con­cerned — the in­sur­ance com­pa­nies, bro­kers, rein­sur­ers and the in­sured as well. With places like Salalah hit by backto-back cy­clones and trop­i­cal storms — and with such nat­u­ral events set to oc­cur at a more fre­quent in­ter­val — it be­comes nec­es­sary for prop­erty own­ers to pay their pre­mi­ums in full at the time of the pol­icy be­ing writ­ten up. This way, they are not only se­cure, but any claims will be set­tled promptly,” he added.

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