Financial Services Authority: Decision No. Kh/12/2026 Issuing the Regulatory Bylaws for Practicing Other Insurance Loss Assessment and Valuation

Financial Services Authority
Decision No. Kh/12/2026
Issuing the Regulatory Bylaws for Practicing Other Insurance Loss Assessment and Valuation

Based on:

• The Insurance Companies Law, issued by Decision No. 79/2012;
• The Motor Insurance Law, issued by Decision No. 94/2013;
• The Takaful (Islamic Insurance) Law, issued by Decision No. 2016/11;
• The Financial Services Authority Law, issued by Decision No. 20/2024;
• The Regulations for Valuing Motor Vehicles as a Result of Accidents, issued by Decision No. Kh/72/2017 (repealed);
• The approval of the Ministry of Finance;
• The approval of the Financial Services Authority Board;
• And after consulting the General Authority;

It is decided:

Article One
The attached Regulatory Bylaws for Practicing Other Insurance Loss Assessment and Valuation shall be implemented.

Article Two
The Regulations for Valuing Motor Vehicles as a Result of Accidents, issued by Decision No. Kh/72/2017, are repealed, along with any conflicting provisions of the attached Bylaws.

Article Three
Companies licensed to practice the repealed regulations for valuing motor vehicles as a result of accidents must comply with the provisions of the attached Bylaws within one year from the date of implementation.

Article Four
This Decision shall be published in the Official Gazette and takes effect from the date of its publication.

Issued on 3 Rabie' al-Awwal 1448 AH
Corresponding to 16 August 2026

Hamoud bin Saif bin Suhaim Al-Jaberi
Minister of Finance
Chairman of the Financial Services Authority Board

Regulatory Bylaws for Practizing Other Insurance Loss Assessment and Valuation

First Part: General Provisions and Definitions

Article 1
For the purpose of applying the provisions of these Bylaws, the following words and expressions shall have the meanings indicated opposite them, unless the context requires otherwise:

• Authority: The Financial Services Authority.
• Executive Director: The Executive Director of the Authority.
• Company: An Insurance Company or a Takaful (Islamic Insurance) Company licensed by the Authority to practice insurance activities, including reinsurance.
• Activity: Other insurance loss assessment and valuation, i.e., insurance loss assessment prior to the occurrence of the insured risk against the insured.
• License: The approval issued by the Authority to practice the activity.
• License Holder: The legal or natural person holding the license.
• Client: The legal or natural person contracting with the loss assessor.

Article 2
No one may practice the activity without obtaining a license.

Article 3
A company may not deal with any person licensed to practice other insurance loss assessment and valuation without a license.

Article 4
The services provided by the Authority shall be determined according to the attached schedule and shall be non-refundable.

Second Part: Licensing

Article 5
The conditions for obtaining a license are as follows:

• The license applicant must adopt the form of a joint stock company in accordance with the prevailing laws.
• The applicant's commercial register must be limited exclusively to practicing the activity.
• The applicant's paid-up capital must not be less than 50,000 (Fifty Thousand) Omani Rials.
• There must be no prior issuance of judgments convicting the applicant's owners of a felony or misdemeanor involving fraud or breach of trust, or sentences of imprisonment, within the preceding five (5) years, unless it has been decided to expunge their record.
• The applicant must have a dedicated manager for the activity and at least four (4) employees.
• The Authority must not have any ownership, shares, or stakes in any insurance company owned by the applicant's owners.

Article 6
The applicant for a license must submit a request on the attached form, accompanied by the following documents:

• A copy of the valid commercial register.
• A certificate of non-conviction of the applicant company's owners.
• A document indicating the appointment of a dedicated manager for the activity and at least four (4) employees.
• A valid insurance policy for one of the licensed companies, with an amount not less than 50,000 (Fifty Thousand) Omani Rials, issued in the Sultanate of Oman.
• A copy of the work procedures manual, including standards and methods for practicing other insurance loss assessment and valuation.
• A plan for hiring, qualifying, and training employees.

Article 7
The conditions for the dedicated manager of the activity are as follows:

• Must hold a bachelor's degree or equivalent from one of the recognized scientific institutions in the Sultanate of Oman, in insurance and risk management, engineering, administrative or technical sciences, or other fields related to other insurance loss assessment and valuation.
• Must have at least five (5) years of experience in other insurance loss assessment and valuation.
• Must not have been previously sentenced to a felony or misdemeanor involving fraud or breach of trust, unless it has been decided to expunge their record.
• The Authority may, during the approval process, conduct a competency test for the manager, including an interview.

Article 8
The conditions for the employees of the license holder are as follows:

• Must hold a bachelor's degree or equivalent from one of the recognized scientific institutions in the Sultanate of Oman, in insurance and risk management, engineering, administrative or technical sciences, or other fields related to other insurance loss assessment and valuation.
• Must have at least two (2) years of experience in other insurance loss assessment and valuation.

Article 9
The Authority shall review the license application and issue a decision within thirty (30) days from the date of its submission, provided all required documents are submitted. Failure to submit the required documents within this period shall be considered a rejection of the application. If the submitted data and documents are incomplete, the applicant shall be notified of the deficiencies, and a period not exceeding thirty (30) days from the date of notification shall be granted to complete them. Failure to do so shall be considered a withdrawal of the application.

Article 10
If approval is granted for the license, the applicant shall be notified to submit the following documents:

• A copy of the commercial register.
• Proof of the location of the activity headquarters.
• A copy of the lease contract or ownership deed for the activity premises, indicating the rent amount.
  Failure to submit the required documents within ninety (90) days from the date of notification shall be considered a withdrawal of the application. In all cases, the applicant may not submit a new application for three (3) months from the date of cancellation of the previous application.

Article 11
The Executive Director shall issue a decision on the license in accordance with Article 10 of these Bylaws, provided all required documents are submitted within thirty (30) days from the date of submission. Failure to do so shall be considered a rejection of the application.

Article 12
The license duration is three (3) years, renewable for similar periods. The renewal request must be submitted at least thirty (30) days before the license expiry. In all cases, the license holder must comply with all obligations and conditions specified in these Bylaws prior to renewal.

Article 13
If the renewal request is not submitted, the Authority shall notify the license holder of the expiration of the license and grant a period to fulfill the documents and conditions specified in these Bylaws. Failure to do so within thirty (30) days from the date of notification shall be considered a withdrawal of the application.

Article 14
After one year from the date of issuance of the license, the holder may request to open a branch, provided they submit a request on the attached form and comply with all conditions and procedures specified in these Bylaws.

Article 15
The Authority may suspend the license for a period it deems appropriate, with a decision stating the reasons.

Article 16
The license holder must notify the Authority of any amendments to the registered data in the Authority's records.

Third Part: License Holder Obligations

Article 17
The license holder must commence practicing the activity within six (6) months from the date of issuance of the license.

Article 18
The license holder must adhere to the rules of professional practice, ethics, and integrity. They must also maintain the confidentiality of all their activities, data, and information, and the documents and information they possess or are based on.

Article 19
The license holder must:

• Submit all documents, data, or information requested by the Authority.
• Display the license prominently in a visible place at their office.
• Maintain organized records and books documenting the source, content, and preservation of documents, information, and papers related to their activities.
• Develop written procedures and guidelines for other insurance loss assessment, based on scientific and legal principles.
• Qualify and train their employees regularly.
• Not delegate their activities to any person other than themselves.
• Comply with all regulations, decisions, and instructions issued by the Authority.
• May consult experts in the field as needed.

Article 20
The license holder is prohibited from owning any shares or stakes in any insurance company, except insurance companies, or participating in their management. In all cases, the license holder must not own any shares or stakes in any insurance company providing services to them.

Article 21
The license holder is prohibited from dealing with any insurance company owned by their relatives, where the first-degree relative owns more than five percent (5%) of the company's shares or has a stake in it.

Article 22
The license holder may not transfer the license without obtaining the Authority's approval, provided the transferee complies with the license conditions specified in these Bylaws.

Article 23
The license holder must conclude a contract with the client before undertaking other insurance loss assessment, including:

• The scope of work, rights, and obligations of the parties.
• The mechanism and timing for determining fees.
• The mechanism and duration for submitting valid other insurance loss assessment reports.
  The license holder is obligated to provide a technical opinion on other insurance loss assessment.
  The client has the right to review the reports and documents, and the license holder must provide copies upon request.

Article 24
The license holder must, when conducting insurance loss assessment:

• Understand the nature of the work procedures and coordinate with the client if necessary.
• Submit a comprehensive and accurate report, including a risk management file and associated risks.
• Accurately describe the systems, equipment, and main personnel associated with the risks, whether internal or external.
• Verify the functioning of monitoring and control systems, such as fire extinguishers and alarm devices, and ensure their operation by authorized assessors.
• Propose urgent measures to prevent the escalation of associated risks.
• Comply with all regulations, decisions, and instructions issued by the Authority.

Article 25
The license holder must, when conducting other insurance loss assessment:

• Investigate and determine the causes of the loss and the extent of coverage under the insurance policy.
• Verify suspicious claims and fraud methods, and determine compensation if found.
• Determine compensation based on the insurance policy and its terms.
• Advise the client on the methods to minimize losses.
• Submit a report stating the technical opinion and the amount of insurance coverage regarding the loss and compensation.
• Negotiate with the insurance company on the claim.
• Comply with all regulations, decisions, and instructions issued by the Authority.

Article 26
If the insurance company assumes the responsibility for the estimated value of other insurance loss to the client, the client has the right to choose another license holder at their expense. If there is no agreement between the client and the insurance company on the estimated value, the estimated value provided by the insurance company shall be considered the final binding amount for both parties, unless the client chooses the license holder's estimated value.

Article 27
The license holder must provide the Authority with an annual report within three (3) months from the end of the financial year, including:

• The number and names of parties they dealt with.
• The types of other insurance loss assessment operations.
• The amount of fees received and remaining from them, as well as fees from clients.

Fourth Part: Administrative Penalties

Article 28
Authorized Authority employees may inspect the license holder's systems, books, and records to verify compliance with the provisions of these Bylaws and the specified standards.

Article 29
In case of violation of the provisions of these Bylaws, the Authority may impose one or more of the following penalties:

• A warning.
• An administrative fine not less than 500 (Five Hundred) and not exceeding 25,000 (Twenty-Five Thousand) Omani Rials.
• Suspension of the license for a period not exceeding six (6) months.
• Cancellation of the license.
  The license holder whose license is cancelled may not submit a new license application for two (2) years from the date of the cancellation decision.

Article 30
The license is suspended in the following cases:

• If the violation is repeated more than once.
• If they fail to pay the imposed financial obligations and fines.
• If they fail to remove the causes of the violation within the specified period.

Article 31
The license is cancelled in the following cases:

• If the license holder transfers the license without the Authority's approval.
• If they fail to renew the license within thirty (30) days from the expiry date.
• If the reasons for suspension are not rectified.
• If a judgment of imprisonment is issued against the license holder.
• If there are violations that cannot be rectified.
• If the license holder fails to practice the activity within six (6) months from the date of issuance of the license.
  The Authority may also cancel the license upon the license holder's request, after paying the imposed obligations and fines.

Article 32
The Authority may impose a late payment penalty of five percent (5%) of the renewal amount in case of delay in renewing the license within thirty (30) days from the expiry of the license period.

Schedule of Fees

No.	Service Description	Amount in Omani Rials
1	Issuance of License Application	500 (Five Hundred)
2	Issuance of Renewed License	3,000 (Three Thousand)
3	Opening a Branch for License Holder	200 (Two Hundred)
4	Modification of License Holder Data	20 (Twenty)