Oman’s Capital Market Authority (CMA) has created a fund to assist local companies unable to offer insurance payouts to their employees.

The fund will support both parties, in the event that the company fails to meet its obligations, a CMA decision said and added that this was mentioned under “Article 7 of the guidelines for the fund: the finances for this fund will come from different sources.”

According to the CMA, it will invest money into the fund to generate returns, while donations, grants, and other resources committed to the fund will be added once determined by the fund’s board, which will also layout the process of aid disbursement.

It added that life and family insurance policies will incur a 0.25% fee to support the fund and an additional 1% fee will be levied on general insurance policies to generate additional resources for the fund.

READ: Oman’s Insurance Sector Performance in 2018

In order to substantiate its inability to offer payouts, the company concerned will have to present the requisite documents that include a statement of valid insurance policies, a statement of the value of claims for outstanding insurance policies, and a statement of the names of the parties whose insurance dues have not been paid in whole or in part.

Additionally, the company must mention the value of liquidation of life insurance and family insurance linked to the investment, as well as any other information that may be required of it by the fund’s board.