Royal Decree No. 12/79 Promulgating the Insurance Companies Law

Royal Decree
No. 12/79
Promulgating the Insurance Companies Law
,We, Qaboos bin Said, Sultan of Oman
After perusal of the Oman Sultani Decree No. 26/1975 promulgating the Law on the Regulation of the Administrative Apparatus of the State and its amendments, And based on the public interest ,requirements :Issued the following Decree Issued on 22 Rabi' Al-Thani 1399H Corresponding to 21/03/1979 Qaboos bin Said Sultan of Oman Title 1 - Preamble
Article 1 : This Law shall be applied on the companies exercising, within the borders of Oman, all
:the following insurance activities or any one of them :First : General insurance, divided into the following sections Liability insurance: including employer liability, general liability, product liability, professional -1 .liability, and any other insurances falling under this section Work-related injuries insurance: including insurance against risks resulting from the insured’s -2 injury or occupational disease at the workplace, and any other insurances falling under this .section Motor vehicle insurance: including insurance against losses and liabilities related to vehicles, -3 .with the exception of transport risks Property insurance: including insurance against losses resulting from fire, theft, explosions, -4 .natural phenomena, disturbances, and any other insurances falling under this section Marine insurance: including insurance on seaborne goods, ship hulls, liabilities, and any other -5 .insurances falling under this section Air insurance: including insurance on aircraft hulls, passengers and third parties’ liabilities, air -6 .transported goods, and any other insurances falling under this section Land transport insurance: including insurance against risks related to land transport from the -7 starting point of transport to the destination, and the liabilities, and any other insurances falling .under this section Energy insurance: including insurance on oil facilities, petrochemical facilities, other energy -8 .facilities, and any other insurances falling under this section

Engineering insurance: including insurance against contractors' risks, installation risks, -9 electrical and electronic devices, machinery damage, and any other insurances falling under this .section Electronic (cyber) risks insurance: including insurance on the protection of systems, networks, -10 programmes and data from electronic attacks, and any other insurances falling under this .section Other insurances: including insurance against personal accidents that occur within one -11 Gregorian year, guarantee or breach of trust, burglary and theft, money transfer, glass breakage, .travel, and any other insurances that do not fall under any of the previous sections :Second: Health insurance, divided into the following sections Insurance on medical costs, medicines, all medical and treatment services and supplies, and -1 .management of medical programmes Work-related injuries insurance: including insurance against risks resulting from the insured’s -2 injury or occupational disease at the workplace, and any other insurances falling under this .section Insurance against personal accidents that occur within one Gregorian year: including insurance -3 for accidental death, total permanent disability, partial temporary disability, and any other .insurances falling under this section :Third: Life and savings insurance, divided into the following sections :Life insurance, including the following -1 a- Insurance operations related to the effects of death, total, partial or permanent disability, or .temporary disability b- Insurance operations against the risks to which the insured persons are exposed because of injuries as a result of an accident or an accident of a specific type, or death as a result of an accident, or an accident of a specific type, or disability as a result of a disease of a specific type, when it is expressly stated that it is valid for a period of not less than (5) five years or for an unlimited period, even if it does not expressly state that it may be terminated by the insurer before the expiry of a period of (5) five years from its commencement, or stipulates that it may be terminated before the end of the said period, and in some special cases only according to .what is mentioned therein Life and savings insurance: including insurance operations in which the insured pays an -2 amount or amounts, including the proceeds of savings, at a subsequent date in return for the .contributions paid by the insured Other sections of life and savings insurance: including other sections of life and savings -3 .insurance that do not fall under any of the two previous sections .Article 1 bis: The term (insurance) stated in this Law shall also mean re-insurance operations Title 2 - Licensed Insurers
Article 2: 1- Without prejudice to the provisions of Article 51 of this Law for foreign companies,
only the companies that met the following requirements (hereinafter called insurance :companies) shall exercise insurance activities in the Sultanate of Oman a. It shall be a shareholding company established according to the Commercial Companies Law .for the exercise of insurance operations b. It shall be licensed by the Ministry of Commerce and Industry (hereinafter referred to as

.Ministry) to exercise all or any type of insurance set forth in Article 1 of this Law
c. It shall be a shareholding company owning the minimum capital required by the Law and shall
have carried out the insurance required to be deposited, and the insurance company shall have .the minimum solvency during the exercise of its activity No company other than the companies licensed under this Law shall use the word "insurance -2 .company" or "insurer" after six months from the date of entry into effect of this Law Insurance company" shall also mean the branch office, agency or any other entities derived" -3 from the insurance company established in Oman or abroad that exercise insurance works in the .Sultanate of Oman
Article 3: Executive President (hereinafter referred to as: Executive President ) shall grant the
:license to its applicant if all the following conditions are met .If it deems that the national economy of the Sultanate needs more insurance companies -1 :If the following matters are met -2 a. The applicant fulfilled all the obligations stated in Article 2 of this Law to form an insurance .company b. The applicant shall prove that the value of the paid-up capital is not less than ten million .(10,000,000) Omani Rials
c. That measures are already taken or will be taken by the applicant for re-insurance against risks
in this type of insurance that insured the applicant or shall insure the persons against it, during the exercise of its activity unless there is a justification not to take the necessary measures for .this purpose d. A qualified person shall have been appointed in the field of insurance as Director, observer of .Director General of the insurance company of the applicant e. It shall deposit at the Authority an amount of 75,000 Omani Rials if the application is related to the license to exercise general insurance or life insurance, and an amount of 150,000 Omani .Rials if the application is related to the license to exercise general life insurance
Article 4: The solvency limit that the insurance company shall keep shall be calculated at least
once per year. The Ministry shall not ask the company to submit the documents related to the same before expiry of twelve months from the commencement of the work of the insurance .(company, provided that the company submitted the guarantee set forth in Article 3 (e
Article 4 bis: The total direct premiums for health insurance shall be subject to the same fees
related to financing the Insurance Emergency Fund, and the supervision and control imposed on the total direct premiums for general insurance. All the requirements of guarantees and financial accounts for general insurance shall apply to the health insurance policies, provided that they .are submitted separately holding the name of health insurance group
Article 5 : The Executive President shall establish an office at the authority (hereinafter referred
:to as Office) to carry out the following
.a. Register the information set forth in this Law .b. Issue the license to carry out all the insurance operations or any category thereof .c. Preserve all the documents required by this Law .d. Monitor the activities of the insurance companies

.e. Control whether the insurance companies retain the solvency limit .f. Dispose of the deposit of one of the insurance companies according to this Law .g. Any other tasks assigned by the Executive President to the Office
Article 6 : 1- The license application of an insurance company shall be submitted in writing
accompanied with the other documents specified by the Executive President or deemed .necessary to prove the fulfillment of the conditions required by Articles 2 and 3 of this Law If the Executive President was convinced that all the conditions required by this Law were met, -2 it shall assign the competent insurance office at the authority to issue an insurance license and notify the applicant in writing of the same. The license decision shall be published in the Official .Gazette and with effect from that date, the company shall be considered an insurance company If the Executive President was not convinced that the conditions stated in Articles 2 and 3 -3 hereof were met, he shall assign the office to notify the applicant in writing of the reasons that .make the authority reject the application
Article 7: Any person may appeal the decision of the CEO to reject the license application set
forth in Article 6 hereof before the Appeals Committee at the Capital Market Authority within (60) sixty days from the date of its notification of the rejection of the application, according to .the procedures set forth in the Law on Capital Market and its Implementing Regulations
Article 8: 1- The Executive President shall, concerning any licensed insurance company and in any
:of the following cases a. If he was notified that all or some of the conditions set forth in Articles 2 and 3 of this Law were not met during the exercise of the insurance company to its activity - or b. If he was not convinced that the insurance company follows, while exercising its insurance type, the correct insurance method - or
c. If he discovered that the solvency limit of the insurance company is insufficient or became
.insufficient after following the procedures set forth in Article 15 bis d. If he was notified that the insurance company suspended the insurance works in this country - or e. If he received from the insurance company a written request to withdraw the license - or f. If he was notified that a final judgment related to the insurance works was issued against the insurance company by any court in the Sultanate of Oman and that the judgment remained .unsolved for more than 60 days g. He shall assign the office to notify the insurance company in writing of his decision to withdraw the license. Such notification shall be subject to the provisions of Article 7 with all the .results entailing therefrom as if such notification was to reject the license application The Ministry shall withdraw the insurance license if he does not submit an appeal according to -2 paragraph (1) of this Article or if the Appeals Committee rejects the appeal. The decision to .withdraw the license shall be published in the Official [2 p.20] Gazette
Article 9: 1- The insurance company that was granted a license as insurer shall start the
insurance operations at least in one type of insurance licensed to be exercised, within twelve .months starting the day following the publication of the license in the Official Gazette

If the insurance company does not start the insurance operations at all or any type of -2 insurance before expiry of the period of twelve months starting from the day following the publication of the license, the Ministry shall withdraw the license and the provisions of Article 8, .paragraphs 1 and 2 shall apply
Article 10: 1- In case of withdrawal of the insurer's license (Articles 8 and 9 of this Law) and the
continuation of the company to exercise the work in contradiction to the provisions of this Law, .this shall be considered as violation The company shall not be considered having exercised insurance works in contradiction to the -2 provisions of this Law if the purpose of the same is to meet the legal obligations before .withdrawal of the license
Article 11: The Minister shall issue the regulations related to the implementation of Title 2 of
this Law and may specify the method of submittal of the license application, the registers, .extracts and copies. He may also specify the fees of the license applications Title 3 - Limit of the Ability to meet the Requirements
Article 12: Every insurance company licensed to work at the Sultanate under this Law shall
.preserve at all times the limit of solvency specified by the Implementing Regulations
Article 13 : cancelled
:Article 14: 1- The limit of solvency shall be estimated annually a. As defined by the regulations and signed by the person specified by these regulations .b. Including a statement of the assets and liabilities as required by the regulations If the insurance company violates the regulations, the value of its assets will be considered as -2 not corresponding to its liabilities in the required extent within the limit of the financial solvency .of this Law, until the opposite is proved
Article 15: 1- The guarantee set forth in the provisions of Articles 3 (e) shall be deposited at the
bank approved by the Minister for a period not less than 3 years. The insurance company may .receive the interest due thereon After expiry of a period of 3 years, the Ministry may allow the insurance company to withdraw -2 any part of the guarantee paid or the whole guarantee in case the Ministry finds that the .solvency limit decided by the Law is met If the Ministry does not find that the company's solvency is met, it may decide to extend the -3 period of three years, increase the value of guarantee or both, without prejudice to the .provisions of Article 15 bis The Ministry may issue regulations related to the organization of the deposit, investment, -4 disposal and replacement of the banking letters of guarantee, securities or bonds in their cash value and collect the revenues of these bonds in which these guarantees are invested from time .to time as well as the cases of withdrawal and transfer of the above-mentioned guarantees
Article 15 bis: If no national company preserves the solvency limit decided by the Law on the
date of any balance sheet, it shall defer [5 p.20] the distribution of profits to the shareholders for this balance sheet and set aside a sufficient amount of these profits to rectify its position. If all the profits were not sufficient for this purpose, the Minister may grant it a period not exceeding twelve months to submit to the Ministry, within a date specified by the Minister, a

report on its financial position to prove the completion of this rectification. If the report states that the company did not complete the stated solvency limit, it shall complete it during the first .subsequent ordinary balance sheet Title 4 - The Regulations regulating the Management and Accounts
Article 16: 1- Every insurance company shall take a main office in Oman and shall appoint a
Director in charge while notifying the authority in writing of the headquarters and address of the .office and name of the Director in charge If the insurance company changed its main office or appointed a new Director in charge, the -2 insurance company shall notify the authority in writing of these changes within 30 days from the .date of occurrence thereof The authority may assign the insurance company to terminate the service of the Director in -3 charge if the Ministry deems that this Director is not qualified in the field of insurance in order .to serve as Main Manager Main Manager" shall mean the person appointed by the insurance company or the agent to" -4 be, alone or in conjunction with other persons, liable, under the direct management of the .members of the Board or the agents, for conducting all the insurance works of the company In the application of parts 4, 5, 6, 7 and 8 of this Law, the insurance company shall also mean -5 the insurer of which the headquarters is located outside the Sultanate of Oman, authorized to proceed with its activities according to the provisions of Articles 51 and 52 of this Law, .represented by an agent or representative
Article 17: 1- Every insurance company shall appoint an accountant (actuary) within one month
from starting to exercise the life insurance activity as an accountant (actuary) for the company, and when the service of the appointed is terminated under this Article, the company shall .appoint another as soon as possible The company carrying out the appointment under this Article shall notify the Ministry in -2 writing within fourteen days of the name and qualifications of the appointed person. If the period of appointment under this Article expired, the company shall notify the Ministry of the .same in writing within fourteen days and notify it of the name of the concerned person The Ministry shall have, concerning the accountant (actuary), the same power vested in it -3 .under Article 16 (3) for the Main Manager
Article 18: 1- Every insurance company, at the end of every financial year, shall prepare a
statement of revenue of the year, the balance sheet and profits and losses account according to .the accounting records :It shall prepare the books of accounts in a way helping to -2 a. Reveal at any time and with reasonable accuracy the financial position of the company at that time ... and b. allow the Managers to access any balance sheet or profits and losses account prepared under paragraph (1) that may achieve the following requirements: the balance sheet shall give a truthful and adequate image of the position of the company, and the profits and losses account .shall give a sufficient image of the profits or losses of the company :The books of accounts shall include the following in particular -3 a. Journal entries of all the credited and debited amounts of the company while clarifying the .reasons of credit or debit .b. A book containing a statement of the company's assets and liabilities

The books of accounts shall be kept in the headquarters of the company or in any other place -4 deemed convenient by the Board of Directors of the company, in a way that is available for .review at any time by the employees in charge of the company Without prejudice to any instruction concerning the disposal of any of the registers kept by a -5 company, any accounting records that the company is required to keep under this Article shall .be preserved for a period of at least six years from the date of preparation thereof If a company violates any of the conditions of paragraphs 1-5 above, every employee -6 responsible for this failure at the company shall be guilty of an offense unless he proves that he acted honestly and that this error may be forgiven concerning the circumstances under which the company was exercising the work. If any of the company's employees fails to take the reasonable steps to guarantee that the company observes paragraph 5 above or if he causes, intentionally, the occurrence of any error by the company under this paragraph, he shall be guilty of an .offense
Article 19: 1- In case an insurance company exercises the works of two insurance groups, i.e. life
insurance and general insurance, all the collected amounts related to every insurance group referred to above shall be stated in a separate and special account and shall be carried forward from and to an independent insurance balance holding the name of the insurance group to .which it belongs, whether the balance is related to life insurance or general insurance The balance of every insurance activity shall represent the obligations related to this -2 .particular balance :The insurance balance related to every specified insurance group shall be -3 .a. The absolute guarantee of the insurance policyholders in this group b. It shall not be used directly or indirectly for any purpose other than that related to the .insurance activities in the group related to this Fund
Article 20: Every insurance company shall form the technical allocations and reserves specified in
the Implementing Regulations, provided they are preserved inside the Sultanate, concerning .every type of insurance :Article 21: 1- Every insurance company exercising life insurance activities shall a. Have its accountant (actuary) conduct a test every two years to the financial conditions of this type of insurance, including the evaluation of the obligations to be borne by the company in this regard... and b. upon conducting this test or upon conducting a test at any other time to the financial conditions of the company concerning the life insurance operations exercised for the purpose of distribution of profits, or if the results of this test were published, then the company shall .prepare a summary of the accountant (actuary) report on the test The value of any assets and the amount of any liabilities shall be specified - concerning any -2 test subject to the provisions of this Article according to any regulations in force related to the .evaluation The form and contents of any summary or statement prepared under this Article shall be -3 .conformant to all that is decided in this regard
Article 22: The accounts and budgets related to every insurance company shall be audited by an
auditor in the decided method. Concerning this Article, the provisions of the Commercial

.Companies Law of 1974 concerning auditing shall be applied
Article 23: 1- Every account, budget, summary or statement, and every report prepared by the
company's auditor as stated in Article 22 shall be printed and five copies thereof shall be kept at the Authority within six months from the end of the period for which they are prepared, and at least one month before holding the Ordinary General Assembly for the national companies. The national companies shall notify the autority of any amendments that may occur to the data of these documents within a period not exceeding one month from the date of approval of the .budget by the General Assembly One of the copies of any of the documents deposited according to paragraph (1), except the -2 :auditor's report, shall be signed as follows a. In all cases by two of the company's Directors, official employee or secretary (if there is no .(official employee b. In case of the summary or statement set forth in Article 21, they shall be signed by the .accountant (actuary) who conducted the test for which the summary is prepared One of the copies of the auditor's report submitted according to paragraph 4/a shall be signed -3 .by the reviewer The office shall ensure the deposit of the previous documents and if it finds that any of these -4 documents is inaccurate or incomplete in any way whatsoever, it shall contact the company to .correct any error and complete any shortage A report related to the company's affairs submitted to the shareholders or policyholders shall -5 be deposited with each income account and with the company' budget, concerning the financial .year for which the account or budget are submitted The national company shall notify the office of the date and place of holding the General -6 Assembly and its agenda fifteen days before the date thereof and shall submit to the office a copy signed by the Director General of the company of every report submitted to the shareholders, policyholders or the like concerning the works of the company upon mere occurrence of the same. It shall also submit to the office a copy of the minutes of every General Assembly of shareholders within a period not exceeding thirty days from the date of the .Assembly The office may send a delegate to attend the General Assembly and participate in the .discussions but shall not have a vote in the decision
Article 24: 1- The authority may require any insurance company exercising an activity of a certain
category or type to prepare a statement of its works on this category or type, for the periods and .on the dates specified The form and contents of any statement shall be determined by virtue of the provision of this -2 .Article as decided by the authority Regulations may be issued concerning these matters included in the statement prepared by -3 virtue of the provisions of this Article in the way specified, provided that this statement is submitted through specified persons. The statement shall be accompanied with certificates .related to the specified matters and in the specified form
Article 25: 1- The assets that represent the balance or balances preserved by the insurance
company and related to its works in the life insurance field shall be allocated only for the purposes of this field alone and the insurance company shall keep the books of accounts and :other registers necessary to distinguish the following .a. The assets representing the balance or balances of life insurance

b. The liabilities related to this type of insurance or - if necessary - related to each type of life .insurance When it is found that the value of the assets set forth in paragraph (1) above exceeds the -2 value of liabilities related to the activity of the company in the life insurance field, taking into account the solvency limit decided by the Law as a result [6 p.20] of the research that the authority approved the outcome thereof, the ban imposed under paragraph (1) above shall be .invalidated on this amount of the assets representing the increase The insurance company may - provided it obtains the approval of the authority - exchange on -3 the basis of a reasonable market price, the assets representing a balance preserved by the .company concerning its activity in the life insurance field, with other assets for the company Any mortgage or obligation (including the obligation ruled by the Court) shall be considered -4 .void to the extent that it contradicts the provisions of paragraph (1) above It shall not be possible, in any case, to use the money balance kept by the company for its -5 activity in the life insurance field, for other purposes of the company, regardless of any arrangements taken later on to recover it from the outcome of revenues generated by this other .activity No insurance company shall announce the distribution of profits at the time where the value -6 of the assets representing the balance or balances related to its activity in the life insurance field is less than the amount of liabilities of this activity, according to the solvency limit decided by .the Law - according to the evaluation rules in force :Article 26: 1- If the insurance company meets the following conditions a. If a surplus is achieved allowing the life insurance policyholders of any type to participate therein ... and b. If an amount is allocated for distribution to the policyholders of this type of insurance from the last surplus achieved for the previous period and the policyholders of this type have the right to participate therein, the company shall not have the right to allocate anything from the assets forming any part of the surplus stated in paragraph (a) above for purposes other than those stated in Article 25 (1) above, and the company shall specify the amount of allocation of .this surplus for distribution to the policyholders of this type The "achieved surplus" in this Article shall mean the increase of the assets representing all the -2 balance or balances preserved by the company or a certain part thereof concerning its activity in the field of life insurance - on the liabilities or a specified part of the liabilities of the company .related to this activity as a result of the test set forth in Article (21) above According to the purposes of this Article, only the following shall be considered as distribution -3 :of profits on the policyholders a. Actual payment of their profits... or b Notifying them of their right to recover profits or
be granted a reduction in the premiums due from them. The amount allocated in the cases falling within the scope of paragraph (a) above is the value of the amounts paid, and in the cases falling within the scope of paragraph (b) above, it is the amount of the obligations borne by the company as a result of the risks or the granted .reduction According to the purposes of this Article, any profits paid in anticipation of the achievement -4 .of a surplus shall be treated as amounts distributed from this surplus
Article 27: 1- The insurance company exercising life insurance activities shall be forbidden to
:participate in any deal that lead to the fact

a. That a person related to the insurance company becomes a debtor thereof... or b. That the insurance company obtains shares in a company, which is a person related to it... or
c. That the insurance company becomes liable for facing the obligation of any person related to
it or assisting such person to face its obligation And that whenever the right of collecting the debt constitutes an asset of the insurance company or the payment of the price of shares from the account of the life insurance balance, or the .fulfillment of the obligation was from the account of these balances Pursuant to the provisions of this Article, the person shall be related to the insurance -2 company as stated in paragraph (1) above if that person, despite not being subject to the :insurance company a. Controls the insurance company by itself or is the partner of the person controlling it... or b. In case the company, if subject to the control of the insurance company or the control of another person that is also controlling the insurance company... or .c. Is Director of the insurance company, spouse, minor son or minor daughter of this Director This Article shall not mean the invalidity of any contract between both parties, or invalidity of -3 .any right or obligation related to property Obligations of Unspecified Value
Article 28: 1- Any contract concluded with the insurance company shall be void in the following
:cases a. If it is a contract under which the company is bound by an obligation of which the value .cannot be specified at the time of contracting or the maximum limit that its value may reach b. If it is not an insurance contract at all or if it is an insurance contract not licensed for the company .c. If the contract contains articles and conditions contradicting the main principles of this Law d. Any dispute arising as a result of the provisions of paragraph (1) of this Article shall be .definitively settled through the Commercial Disputes Settlement Committee Title 5 - Authorities of the Minister or Ministry
Article 29: 1- Any authority of the executive president or the authority shall apply towards all
:insurance companies and the exercise thereof shall be based on any of the following principles a. If the Executive President deems that the exercise of his authority is desirable to protect the current or potential policyholders in the future, from the risk of the company's inability to meet its obligations or - in case of life insurance - to achieve the reasonable purposes related to the .current or potential policyholders in the future b. If he deems that the company failed to meet an obligation to which it was subject under this .Law
c. If it finds that the company submitted misleading or incorrect information to the authority
according to this Law or the implementation of any text thereof d. If he finds that the company did not and will not take the adequate measures to re-insure the risks for which the company, during the exercise of its activity, insured the persons thereof despite being risks that the Executive President deems necessary to take these measures in their

.regard
Any of the authorities set forth in paragraph (1) above shall also be exercised towards any -2 :company in the following cases a. For the company exercising general insurance operations, if the Executive President was not .reassured that the company is able to meet its debts b. For the company exercising life insurance, if the Executive President was not reassured that the value of the assets representing the preserved balance(s) in the field of life insurance exceeds the value of its obligations for the life insurance policies, according to the solvency limit .decided by the Law :Article 30: 1- The Executive President may prohibit the company from .a. Exercising any type of insurance or issuing a specified type of insurance policies b. Making any amendment to any of the insurance contracts of a specified type concluded during the exercise of the general insurance operations and valid at the time of issuance of the .prohibition The prohibition referred to in this Article shall be applied on the insurance activity, regardless -2 of whether this activity is included or not in a certain type of insurance, authorized for the .company to exercise it at that time
Article 31: 1- The Executive President may set regulations related to the investment of the assets
of the insurance companies. If an insurance company has a former investments portfolio that is different from the portfolio decided by the Executive President, the Executive President may assign this company to take the necessary measures to fit between its investment policy and the investment policy decided by the Executive President, provided that the latter grants the .insurance company a period to achieve such fitting Any assignment under this Article may be formulated for the investments of the assets -2 corresponding to the balance or balances preserved by the company concerning the life .insurance works related to it alone, or that only apply to the other investments
Article 32 The Executive President may issue the regulations requiring that the assets of the
insurance companies of which the value is equivalent, at any time, to all its local obligations or a .certain rate thereof, shall be preserved in the Sultanate of Oman
Article 33 1- The Executive President may, in the regulations issued according to Article 32 above,
impose an additional condition leading to the preservation of all the assets subject to this
Article, or a certain rate thereof at a person approved by the Executive President as trustee of
.the insurance companies
None of the assets preserved at a person considered trustee of the company shall be released -2 in application to the condition imposed under this Article throughout the period of validity of .this condition unless with the consent of the Executive President
Article 34: The Executive President may compel the company to take the necessary measures in
:order to guarantee that the total insurance premiums Obtained by the company against its obligations within a specified period for the exercise of -1 the general insurance works or a certain type thereof... or

Obtained within a specified period against its obligations during this period for the exercise of -2 life insurance or a certain part thereof... shall not exceed the paid-up capital by more than a .certain percentage
Article 35: 1- The Executive President may compel the company exercising life insurance works, of
:the following a. Its actuarial expert examines the financial position of the company (including the evaluation .of its liabilities) concerning this insurance or a certain part thereof on a specific date .b. Prepare a summary of the report submitted concerning this examination
c. Prepare a report on its activity in the life insurance field or that part of its activity on that
date... and
.d. Deposit the report at the Executive President In order to achieve the purpose of the required examination in implementation of this Article, -2 the determination of the value of assets or liabilities, whatsoever, shall be according to the .applicable rules of evaluation :Article 36: 1- The Executive President may a. Compel the company at the date and place he specifies to submit the books and documents determined by him... or b. Authorize any person upon submittal of a proof of this authorization (if required) to compel .the company to submit immediately any books or documents specified by this person According to the power authorized under paragraph (1) above that the Executive President or -2 his representative may compel any company to submit any books or any documents, the Executive President or that person may have the same power to request the submittal of such books or documents from any person deemed to be in possession thereof, in a way that if it is the holder of these books or documents, it shall have a lien upon them, then this submittal shall .be without prejudice to the privilege thereon Any power granted by paragraphs 1 and 2 or granted thereunder to claim any company or -3 :another person to submit books or documents including the following powers .a. Making copies or extracts thereof b. Compelling this person or any other person who is or was in the past Director, auditor or employee at this company, to provide an explanation of any of them. If it was impossible to submit the books or documents, the person assigned to submit them shall decide about their .whereabouts according to the probable beliefs
Article 37: The Executive President may compel the company to take the convenient procedures
to protect the current or potential policyholders of the company from the risk of inability of the company to meet its obligations or its inability in the field of life insurance to implement the reasonable possibilities of the current or potential policyholders in the future

Article 37: bis The CEO of the Capital Market Authority shall issue a decision determining the
rules and conditions of disclosure of the companies operating in the insurance field of all the .circumstances or information affecting their activities or financial positions
Article 38 1- The Executive President may, upon the request or approval of the insurance
company, issue an order stipulating that concerning the application of all the provisions of this :Law or one of these provisions on the Company a. Considering the activity of a specified type in the order, which is usually not a life insurance .activity, as one of these activities b. Considering an activity described as a certain type of insurance as if it not one of these .activities The order issued under the provisions of paragraph a / b above may rule that the activity set -2 forth in the order shall be considered as falling within a certain type of insurance set forth in .Title 1 of this Law The order issued under the provisions of this Article may include conditions and may be -3 .amended or cancelled by the Executive President at any time
Article 38 bis: The Chief Executive Officer of the Capital Market Authority shall issue a decision
regulating the activities of health insurance companies Title 6 - Transfer, Bankruptcy and Dissolution of the Insurance Company Portfolio
Article 39: 1- When there is intention to implement a project under which all or some of the life
insurance activities carried out by the insurance company "transferring company" are transferred to another company "transferee company", the transferring or transferee company may submit a .petition to the Court to issue an order for the ratification of this project The Court shall not study any request under this Article unless the submitted petition is -2 accompanied with a report on the conditions of the project, prepared by an independent accountant (actuary) and the Court shall be convinced that the requirements under paragraph 3 .below are met :The above-mentioned requirements are -3 a. A notice shall be published in the Official Gazette and in a local newspaper unless the Court decides otherwise, stating that the request will be submitted and will clarify the address of the offices and the period during which the copies of the documents stated in paragraph 3 (d) below .may be provided according to this paragraph :b. A report was sent - unless the Court rules otherwise Clarifying the conditions of the project and .1 Containing a summary of the report stated in paragraph 2 including the opinion of the .2 actuarial accountant in the potential results of the project on the life insurance policyholders at the two concerned companies, to each of the insurance policyholders and .each member of both companies
c. A copy of the petition and of the report stated in paragraph (2) above and of any report sent
under paragraph 3 (b) should have been sent, and a period of not less than thirty days shall have .expired from the date of sending a copy of the petition d. Copies of the petition and the report stated in paragraph (2) above shall be available for examination at the offices of the two concerned companies in Oman for a period of not less than

thirty days, with effect from the date on which the notice stated in paragraph 3 (a) above, was .published as stipulated in this paragraph The Court shall not issue an order to ratify the project unless it is convinced that the -4 transferee company is actually licensed, under the provisions of this Law, or will be licensed directly after issuance of the order, to carry out the life insurance works of the transferred .type(s) according to the project .The word "Court" in this Article shall mean the Commercial Disputes Settlement Committee -5
Article 40: 1- When the Court issues an order under Article 39 to ratify the project, it may reserve
:all or some of the following matters a. Transfer of all the commitments or liabilities related to the transferring company or any .part thereof to the transferee company b. The transferee company distributes or allocates any of the shares, bonds, documents or any other similar interests in this company, necessitated by the project to be distributed or .allocated by this company to any person
c. Continuity of the pending judicial procedures filed originally by or against the transferring
.company in the name or against the transferee company .d. Dissolution of the transferring company e. All the coincidental and supplementary matters entailed from the project and all that is .necessary to guarantee the full and useful implementation of the project When such order necessitates the transfer of properties or obligations, these properties will -2 be transferred under this order and will become part of the transferee company. These obligations shall also be transferred under this order and become obligations of the transferee company and it may, in the case of any properties, if necessary, be liberated from any mortgage .or burden that the project necessitates the elimination of the impact thereof In the application of any provision necessitating the handing over of any conveyance deed as a -3 condition to register the transfer of any property, the order issued by the competent Court to .transfer any property under this Article shall serve as a conveyance deed In case of ratification of the project by an order from the Court according to Article (39) above, -4 the transferee company shall deposit, within thirty days from the date of issuance of the order or during any period allowed by the Executive President, two official copies of this order at the .authority In this Article, the word "properties" shall include the properties, rights and authorities of -5 .every type and the word "obligations" shall include the fees, shares and bonds
Article 41: 1- The insurance company engaged in general insurance activities shall be considered
unable to meet its debts if the value of its assets does not achieve the solvency limit decided by the Law, at any time after expiry of the first year. And according to the above, the texts of this .Law related to dissolution shall be applied abrogated -2 The insurance company engaged in life insurance activities and at the same time in general -3 insurance activities, the value of the liabilities related to its activity in the field of life insurance shall be calculated at any time concerning this type of insurance, as equivalent to the estimated .amount The regulations set pursuant to this Article may stipulate that any budget prepared by an -4 :insurance company engaged in general insurance activities shall include a certificate

a. Made in a certain form and signed by the persons specified in these regulations... and b. Containing a statement of the assets and liabilities related to the company as determined .by these regulations If any of these companies failed to meet the obligations of these regulations, the value of its assets concerning the application of the provisions of this Article shall be considered not exceeding its liabilities to the extent set forth in paragraph (1) above, unless the contrary is .proved
Article 42: Without prejudice to the provisions of Articles (40, 41, 43, 44 and 45) of this Law, the
insurance company engaged in the general insurance or health insurance activities shall be dissolved in the cases set forth in Article (40) of the Commercial Companies Law, promulgated by .Oman Sultani Decree No. 18/2019
Article 43: If the Executive President deems, in case of the insurance company engaged in general
insurance activities, that it is convenient for the public interest to dissolve the company, he may submit a petition to the Court requesting the liquidation thereof unless the Court had actually .ruled its dissolution
Article 44: 1- The insurance company engaged in life insurance activities shall not be dissolved or
.adjudicated bankrupt unless according to the provisions of this Law .No insurance company optionally engaged in life insurance activities may be dissolved -2 During the liquidation procedures of the insurance company engaged in life insurance -3 :activities, the following shall be taken in consideration a. The assets representing the balance or balances preserved by the company for its life .insurances are only allocated for the obligations of the company regarding these insurances b. As per the other assets of the company, they shall be allocated for the obligations of the .company related to its other insurances only When the value of the assets stated in paragraph 3 above exceeds the amount of liabilities -4 stated in this paragraph, the restrictions imposed by this paragraph shall not be applied on this .part of the assets representing the increase
Article 45: 1- This Article applies to the procedures related to the liquidation of the insurance
companies engaged in life insurance activities only or to the portfolio of the life insurances alone .if the company also conducts general insurance activities The liquidator shall follow, in its treatment of life insurances, the method that allows the -2 transfer of the company's activity to another insurance company, whether it is an existing company or a company formed for this purpose, unless the Court decides otherwise. During the commencement of this work by the liquidator as stated above, the liquidator may accept to amend any existing insurance contracts upon issuance of the decision of dissolution, provided .that he may conclude any new insurance contracts If the liquidator finds that the interests of the creditors concerning the obligations of the -3 company related to its activity in the life insurance field requires the appointment of a Director for the life insurance activities of the company, he may submit a request to the Court that may rule, upon this request, to appoint a Director for this work to exercise his activity within the period specified by the Court and shall have the authorities granted by the Court including the .authorities of the Director or legal guardian The Court may, if it deems it appropriate and taking in consideration the conditions that it -4

may decide, reduce the amount of the contracts concluded by the company during the .performance of its life insurance activities The Court may, at the request of the liquidator or the Director appointed according to -5 paragraph (3) above or the Executive President, appoint an independent accountant (actuary) to examine the life insurance activities at the company and submit a report to the liquidator, Director or the Executive President clarifying if it is recommended or not to proceed with the activity, as well as any reduction that may be necessary to be made to the contracts concluded during the performance of the activity by the company, as a guarantee to proceed with the .activity successfully .The liquidator appointed by the Court under this Article shall be a qualified person -6 .(The word "Court" stated in this Article shall mean the Court stated in Article 39(5 -7
Article 46: In case of the insurance company proved to be unable to meet its debts, the Court
may, if its finds it appropriate, rule the reduction of the company's contract amounts, under the conditions and rules deemed fair by the Court instead of the liquidation of the company Evaluation Regulations
Article 47: 1- The Executive President may issue the regulations for the evaluation of the assets
and liabilities in any case where any text of the Law requires the determination of this value .according to the evaluation regulations Without prejudice to the generalities of paragraph (1) above, the regulations issued under this -2
Article may stipulate that concerning a specific purpose, assets or liabilities of specified type or
description may be deducted from the account or may be taken into account but to a certain .extent only The regulations issued under this Article may include different provisions concerning different -3 .cases or circumstances Title 7 - Conduct of the Insurance Activity
Article 48: 1- The regulations organizing the form and contents of the insurance advertisements
may be set and these regulations may stipulate different provisions concerning the insurance .advertisements for the various types or through different declaration means The word "insurance advertisements" in this Article shall mean the advertisement making -2 people accept to conclude or request the conclusion of insurance contracts. It may be an advertisement that contains information aiming at making people, directly or indirectly, .conclude such contracts or request the conclusion thereof The word "advertisement" in this Article shall include every form of advertisement, whether -3 publications, display of advertisements or through other releases, pictures, movies, radio or .television. It shall also mean the reference to the issue of an advertisement Any person who approves or issues an insurance advertisement that contradicts the -4 regulations issued according to the provisions of this Article shall be considered having .committed an error
Article 49: Any person making any statement that includes an undertaking or promise, while
being aware that this statement is misleading or deceptive by masking material facts or exaggerating in any statement (in good or bad faith) or making a misleading undertaking or promise to attract or try to attract a person to conclude a contract or submit an application to conclude an insurance contract with an insurance company shall be considered having committed an error

:Article 50: 1- Regulations may be issued to compel whoever a. Invites another person to submit an offer or suggestion or take any other step in order to conclude an insurance contract with an insurance company... and b. Is connected to this company as stated in the regulations, and reveals the information thereon concerning his relationship with this company to the person to whom the invitation .is addressed Regulations may be issued compelling any person, of any profession or nature of work who -2 addresses the invitation set forth in paragraph 1 (a) above for an insurance company not licensed to conclude the contract covered by the invitation, to notify the person to whom the .invitation is addressed that the company is not licensed in this contract as stated above Title 8 - Foreign Insurance Company and Transitional Provisions
Article 51: Foreign insurance companies may operate at the Sultanate through authorized
agents, branches or other affiliate units according to the conditions, provisions and .requirements specified by the Implementing Regulations
Article 52: - The foreign insurance company that does not wish to amend its capital, position and
operations in a way that is conformant to the required conditions under this Law and that had sent a notice to the authority to that effect (paragraph "1"), shall immediately stop advertising and inviting other persons to apply, suggest or take any other step to conclude an insurance .contract with the company In addition to the obligations of the company that issued the policies, the agents and Director -2 of the office of the insurance company set forth in paragraph (3) of this Article shall be liable towards the policyholders for the valid policies until their expiry or the transfer of their portfolio to another insurance company operating in Oman. The obligations shall include, according to .this paragraph, the current claims, the outstanding claims and the long-term insurance balances The insurance company referred to in paragraph (2) of this Article that fails to meet the -3 conditions required under this Law during a period of twelve months starting from the date of sending the report to the authority according to paragraph (1) of this Article, shall suspend all .the operations and shall be subject to paragraph (4) of this Article accordingly Title 9 - Penalties
Article 53: Without prejudice to any more severe penalty stipulated by any other Law, shall be
punished by a fine not less than ten thousand Omani Rials and not exceeding fifty thousand :Omani Rials and by imprisonment for a period of three months or by one of these penalties a. Whoever practices in person or by proxy, any insurance act or activity related to the same .without license, according to the provisions of this Law b. Whoever directly represents insurance authorities or companies not licensed to operate .in the Sultanate, works as broker thereat or agent thereof in the Sultanate
c. Every Manager, Board member, auditor, accountant (actuary), liquidator or any person
assigned to manage an insurance company who deliberately includes or uses false information in the budget, profits and losses account, solvency account or in the reports or statements submitted to the Executive President, the authority or the insurance office, or deliberately removes any fundamental fact from any of the said documents, if it was found, as a result thereof, that the true financial conditions of the company were hidden in this .manner from the members of the company, the Executive President, office, or others

d. Whoever exaggerates, with the intent of fraud, in estimating any of the company's assets or reduces the value of the outstanding liabilities of the company to prove the adequacy of .its solvency limit e. Every Director, Board member, auditor (actuary), liquidator or another person assigned to manage an insurance company who is aware that the company's financial position does not allow it to meet its obligations and did not notify the company's Board of Directors and the .authority f. Whoever deposits shares or securities instead of cash and is aware that the value of the shares or securities is not equivalent or will not be equivalent to the value of cash within .thirty days from the date of the deposit g. Every Director, Board member, accountant (actuary) or person in charge of an insurance company who does not take necessary action to form the technical allocations according to
Article 20 of this Law or does not preserve the same throughout the period of practice of
.the company's activity h. Whoever is involved in the distribution of profits contradicting the provisions of Articles .15 bis, 20, 25 and 26 hereof
i. Whoever deliberately carries out insurance acts according to the provisions of Article 30
.hereof j. Whoever deliberately carries out an act or refrains from an act that is related to the investments of the insurance company, in violation to the provisions of Article 31 of this .Law or the regulations referred to thereunder k. Every Board member, Director or person in charge of the management of the insurance company who obviously intervenes in the works of the auditors and the specialized persons .appointed by the Executive President
l. Whoever deliberately impedes, interferes, assaults or resists any specialized person
appointed by the Executive President in the performance of his obligations under this Law, or assists, incites, instigates or encourages any other person to impede, interfere, assault or .resist such specialized person m. Whoever prepares, at any time, an improper report concerning the solvency limit or the .obligations related to the life insurance policies n. Every Director, Board member, broker or any other person carrying out insurance .activities in violation to Articles 48, 49 and 50 hereof o. Every Director, Board member or person in charge of an agency or branch of an insurance .company who carries out insurance activities in violation to Article 51 hereof No criminal lawsuit shall be filed in the previous cases except at the request of the Executive .President or his representative
Article 54: Shall be punished by a fine not less than one thousand Omani Rials and not
: exceeding five thousand Omani Rials
.a. Whoever provides information he knows they are incorrect in order to obtain a license b. Whoever carries out insurance activities in violation to Articles 2/2, 10, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 34, 35, 36, 37, 39 and 40 hereof and in case of repetition of the .violation, the penalty shall be according to Article 53
c. Whoever carries out insurance activities in violation to the regulations issued by the
Executive President under the provisions of this Law and in case of repetition of the

.violation, the penalty shall be according to Article 53 d. Every Director, Board member, accountant (actuary) or any person in charge of the management who accepts insurance against risks he knows that currently he has no .sufficient protection therefrom through re-insurance e. Every Director, Board member or person in charge of the insurance agency who sends a report to the Minister notifying, untruthfully, that the headquarters of the company abroad .will take steps to meet the conditions set forth in Article 51 hereof f. Whoever includes or uses, by negligence, incorrect information in the application submitted to obtain an insurance license or in any report or statement submitted to the Executive President, the authority or the office, or removes, by negligence, any fundamental .fact or document from any of these applications, statements or reports g. Whoever exaggerates, by negligence, in the evaluation of the assets or reduces the value .of the company's liabilities h. Every Director, Board member, auditor, accountant (actuary), liquidator or any person in charge of the management of an insurance company who includes or uses incorrect information, by negligence, in the budget and profits and losses account, or removes, by negligence, from any of the said documents any fundamental facts related to the true financial positions of the company so as to hide them from the members of the Board, the .Executive President, authority, office or other interested persons The penalty shall be issued by a decision from the Executive President or his representative based on the investigation of the authority. This decision may be appealed before the Executive President within one month from the date of notifying the concerned persons of the penalty. .The decision of the Executive President concerning the appeal shall be final
Article 54 bis: The occupants of the posts specified by a decision from the Minister of Justice in
agreement with the CEO of the Capital Market Authority shall have the right to act as judicial officers in the application of the provisions of this Law and the regulations and decisions issued .in implementation thereof
Article 55: 1- If it was proved that the violation committed by the company to the provisions of
this Law were committed with the consent or connivance or as a result of negligence by any member of the Board, key manager, Director, secretary or any other similar employee at the company or any person claiming that he acts in this capacity, he shall then be, along with the .company, liable for this violation and subject to trial and punishment accordingly According to this Article, the person shall be considered a Manager of the company if the -2 .Managers of the company act according to his orders and instructions
Article 56: Without prejudice to any penalty set forth in this Law, whoever violates its provisions
or the decisions issued in implementation thereof, shall be punished by a fine not less than (10,000) ten thousand Omani Rials and not exceeding (100,000) one hundred thousand Omani .Rials
Article 56 bis: The Board of Directors of the Capital Market Authority may reconcile in the crimes
set forth in this Law or the regulations or decisions issued in implementation thereof, in any case where the general lawsuit, before issuance of any judgment therein, is against payment of a financial amount not less than double of the minimum limit of the fine decided for this crime, and not exceeding double the maximum limit thereof. The reconciliation shall entail the .termination of the general lawsuit in the crime Title 10 - General Provisions and Definitions

Article 57: Without prejudice to any international agreements and in other than the individual
life insurance operations, no insurance on the monies, properties or projects existing in the Sultanate or the obligations arising therefrom shall be made. No brokerage shall be made in the insurance operations except at a company registered in the Insurance Companies Register at the .Sultanate
Article 58: 1- The condition requiring the cancellation of the insurance right because of the
.violation of the laws and regulations, unless this violation involved an intentional crime The condition requiring the cancellation of the right of the insured because of his delay in -2 declaring the insured accident to the authorities or in submitting the documents, if the .circumstances indicate that the delay was due to an acceptable excuse Every printed condition not explicitly shown and was related to one of the cases leading to -3 .the nullity or cancellation Any other arbitrary condition of which the violation was proved not related to the occurrence -5 .of the insured accident
Article 59: The Minister may impose on the insurance companies subject to the provisions of
this Law, a relative fee calculated on the total direct premiums due for the company for the total .policies during the year, provided that this fee does not exceed 4% of all insurance operations
Article 59 bis: A fund shall be established at the Ministry under the name "Insurance Emergency
Fund" to help resolve the local crises facing the insurance sector at the Sultanate . [12 p.20] This Fund shall be financed by a percentage of the fees set forth in Article 59 of this Law. The Minister shall issue a decision to specify this percentage and any other resources of the Fund and a .statement of the situations where the help is provided and the work at the Fund is regulated
Article 60: All the insurance policies issued in the Sultanate shall be made in Arabic or at least
accompanied with a true Arabic translation. In case of a dispute concerning the interpretation of .the insurance contract, only the Arabic text shall prevail towards the Omani insured . Article 61: Abrogated :Article 62: In this law. unless the context otherwise require Actuary" Means an actuary possessing the prescribed qualifications or qualifications approved" .by the Executive Prisedent Annuities on human life" does not include superannuation allowance and annuities payable" out of any fund applicable solely to the relief and maintenance of persons engaged or who have been engaged in any particular profession, trade or employment, or of the dependents of such .persons court" means the competent court" .Directors" includes any person occupying the position of director by whatever name called" .The financial year" means the Gregorian year" .General business" means the same meaning of general insurance" insolvent" means in relation to an insurance company at any relevant date, that if proceedings" had been taken from the dissolution of the company the court could hold or have held that the .company was at that date uable to pay its debts insurance company" means a joint stock company set up in accordance with the cimmercial"

.companies law
Life policy" means any instrument by which the payment of money is assured on death (execpt" deatch by accident only) or the happening of any contingency dependent on human life, or any instrument evidencing a contract providing for payment of premiums all over a period depending .on a person's life .life business" has the meaning as life insurance business" life insurance policy holder" means holder of a policy the conclusion thereof by the insurer" .covering life insurance "policy" a. in relation to ordinary life insurance business and industrial assurance business, includes an instrument evidencing a contract to pay an annuity upon human life b. in relation to insurance business of any other class includes any policy under which there is for the time being an existing liability already accured or under which a liability may .accure
c. in relation to capital redemption business, includes any policy, bond, certificate, reciept
.or other instrument evidencing the contract with the company "policy holder" means the person who for the time being is the legal holder of the policy of securing the contract with the insurance company, or in relation of the capital redemption business, means the persons who for the time being is the legal holder of the policy, bond, certificate, reciept or other instrument evidencing the contract with the company and a. in relation to such an ordinary life insurance business or industrial that grants of annuities upon human life, includes an annuitant , and b. in relation to insurance business of any kind other than such as is mentioned in the foreoging paragraph or capital redemption business, includes a person to whom, under a policy, a .registered sum is due or a periodic payment is payable .Prescribed" means prescribed by regulations under this law" .valuation regulation" means regulations under article 47 above"
Article 63 The Executive President of the Capital Market Authority may issue the regulations and
.decisions necessary for the implementation of the provisions of this Law
Article 64: This Law shall be published in the Official Gazette and shall come into force from the
.date of publication thereof