New Policy: Omani Government taxes safe drivers to subsidise young idiots

Ever noticed how incredibly expensive it is to insure a car in Oman? Its not because of Gonu making flood a big risk, nor is it (just) the super high rate of accidents on Oman. If you are an experienced driver over the age of 25, with no history of accidents or making claims, you are being effectively taxed to subsidise the insurance for an 18 year old male in his nice new high performance car.

Yep. In another brilliant Government sponsored initiative, this year the Oman Insurance regulator [the CMA] introduced a new policy, and a new mandatory proposal form. Car insurers in Oman are no longer allowed to ask the sort of important questions you would face if buying auto insurance in most countries, like how many accidents have you had, speeding tickets, who will be driving the car, etc. The insurers are also not allowed to restrict insurance to only drivers over a set age (regardless of the type or cost of the car), and they have been told that under no circumstances can a claim (even for damage to your own car, let alone the third party) be declined for non disclosure.

Now, the insurance companies still need to make money, even when they are forced to insure 18 yr olds who have a history of accidents and are driving nice new Dodge Chargers or Porsches.

So, what that means is the difference is coming from the rates they charge everyone else, including you, even if you are 50 years old, have never had an accident, and drive a Toyota Echo. It also means the insurers are fighting to try and skew their insured population as far as possible away from higher risk drivers, while staying within the regulations.

But, gee, thanks CMA. Like my insurance wasn't high enough already because of these young idiots risking my life and limb, now I even have to subsidise their adventures.

Chairman of Oman Cables Industry fined for Insider Trading

In an article that made the front page of the Oman Tribune today, but can't be found on the on-line edition for some reason (so I can't give you a link), it was reported that the Oman Capital Markets Authority (CMA) had fined Janfel LLC a massive 240,000 rials for insider trading in the shares of Oman Cables Industry. Janfel LLC is, reportedly, owned by the Chairman and executive President of Oman Cables Industry. In addition, Janfel LLC also has to repay 173,418 rials in profits from that illegal dealing.

The Chairman of OCI (who was not actually named in the printed article) is Mustafa Bin Mukhtar Bin Ali Al Lawati. The Chairman of OCI was apparently personally fined 1,000 rials and ordered to return 63,559 rials in profits from the illegal purchase and sale of 1,850 OCI shares.

Wow. That must hurt. A total hit of around $1.2 million dollars. Naughty, naughty!

Its also not clear to me who the 'executive president' refered to in the article is. The Managing Director of OCI is Hussain Salman Al Lawati, but I don’t know if that is the same thing as 'executive president', and the Chairman himself is listed on the company web site as being non-executive.

I’ve never, ever seen a report like this before in the Omani press. This is a very interesting development, and must be part of the Government’s efforts to demonstrate an improved transparency and enhanced level of Government Regulatory activity controlling the Muscat Securities Market, which has previously had a bit of a reputation for being dominated by such dealings.

In fact, its hard to put it better than the OCI Chairman himself, who in his recent address to the 19th Annual General Meeting of Oman Cables Industry (SAOG), is quoted as saying, on the topic of Corporate Governance:

On behalf of the Board I am pleased to inform that OCI, an SAOG company, is consistently and progressively updating its work methods and management systems by improving the levels of transparency at all levels in line with international and Oman’s Capital Market Requirements.

Chairmans Report

Muscati, maybe this is one deal it's fortunate you weren’t tipped off on?