Steps to ease economic impact of COVID-19 on aged Omanis announced

Omanis above 60 years of age will have their loan repayment periods rescheduled to their benefit, while borrowers aged 70 and above will still be eligible for health insurance, because of the effects of the COVID-19 pandemic, the Capital Market Authority has announced.

This is in accordance with Diwani Circular No. 6/5/2020, which said that loans can be adjusted for people above 60, in line with their retirement pensions.

The decision came after discussions between the Central Bank of Oman and CMA to help those Omanis who’d been asked to retire from government employment after having completed 30 years of service.

According to the circular, 70 per cent of government employees were expected to retire after completion of 30 years of employment in the public sector.

A statement from the Capital Markets Authority said, “It is noteworthy that the insurers demonstrated consent to cooperate and extend the insurance coverage for death and disability up to 70 years for borrowers, and to consider the capabilities of the borrowers in terms of specifying the new insurance premium, and to not charge additional amounts or administrative fees.

Extension only

“Do not deem the extension of the coverage for retirees affected by the circular as a new insurance policy if the loan amount is not increased, but treat it as an extension only,” added the authority.

“Insurance coverage on the life of borrowers is an essential element to protect the parties from expected risks such as death or disability, which could prevent the borrower from working and subsequently paying his monthly loan instalments. Defaulting on loan payments will affect the entities that finance them, and will affect their wealth and sustainability levels.”