We, Qaboos bin Said, the Sultan of Oman
after perusal of the Basic Statute of the State issued by Royal Decree 101/96,
and the Vehicle Insurance Law promulgated by Royal Decree 34/94,
and in pursuance of public interest,
have decreed as follows
Article I
A second paragraph is hereby added to article 2(a) of the mentioned Vehicle Insurance Law with the following text:
All vehicles must be insured to cover the expenses of treating injuries incurred by the insured, his equivalent, and their family members from the accident, in accordance with the provisions of this law and the rules issued by a decision by the minister to regulate its conclusion. The determination of the insurance premium in this case must be in coordination with the Ministry of Commerce and Industry.
Article II
The text of article 5 of the mentioned Vehicle Insurance Law is hereby replaced with the following text:
(a) It is not permitted for the insurer or the insured to cancel the compulsory insurance on the vehicle in accordance with the provisions of this law during its validity as long as the licence of the vehicle remains valid. If such cancellation occurs, it has no effect. An exception is made in the case of the submission of a new insurance policy or certificate for the rest of the validity period of such insurance.
(b) If the period of compulsory insurance of the vehicle expires, its owner remains solely responsible for any claim against the vehicle resulting from any accident that occurs during the period of the interruption of insurance.
Article III
This decree must be published in the Official Gazette, and comes into force from the date of its publication.
Issued on: 26 Shawwal 1418
Corresponding to: 23 February 1998
Qaboos bin Said
Sultan of Oman
Published in Official Gazette 618 issued on 1 March 1998.