Residents unaware of insurance costs

Word of mouth and past experience with providers are the most significant decision factors while choosing healthcare providers in the UAE.

Medical insurance is now compulsory for all Dubai residents, but a research commissioned by International SOS shows that half of UAE residents are unaware of their own healthcare insurance costs.

The research conducted in April by YouGov shows that while 84 per cent of people living in the UAE underestimate the country's high level of medical inflation, 51 per cent do not know the cost of their health insurance.

The high level of medical inflation is a serious concern to employers as a growing proportion of the total cost of employment.

Medical inflation in the UAE was 9.5 per cent in 2015 according to Pacific Prime, a global health insurance broker. This means that a company's health insurance policies which cost Dh1 million in 2010 rose to cost Dh1.6 million by the end of last year, according to industry experts.

Many employers in the UAE pay for health insurance directly. Individuals can choose which doctors, clinics and hospitals to use in most plans, sometimes from a list set by their insurer.

But when they have a concern, only a few have access to independent medical advice on which healthcare provider to use, or even whether a doctor's visit is required at all, said an expert from International SOS.

How to choose the best healthcare for you

While hunting for quality healthcare, individuals should look for independent, medically-qualified information about which doctors and hospitals can provide the best possible treatment for their condition. Last year, SOS received a total of 4.6 million calls from clients around the globe seeking advice.

Unified system for motor insurance approved

Abu Dhabi: The Insurance Authority has approved a unified system for motor insurance policies, it was announced on Wednesday.

The new system increases insurance coverage related to any claim arising from an accident that causes damage to property from Dh250,000 to Dh2 million.

The system was announced on Wednesday by Sultan Bin Saeed Al Mansouri. Minister of Economy, and Chairman of the Insurance Authority, in a statement issued by WAM.

“Approving the new system represents a paradigm shift in the development of the organisational foundations and technical regulations of the UAE’s insurance market and vehicle insurance sector,” Al Mansouri said.

The new rule includes two documents. The first is a third party vehicle insurance policy and the second is a policy for insuring vehicle against loss or write-off.

The current system has been in effect for the past 27 years during which two models of insurance policies were issued since 1987.

According to the new system, vehicle insurance has been categorised as per the insurance type through two separate documents.

The first is compulsory and related to third party liability in compliance with the traffic laws.

The second is related to loss or written-off vehicles. It is an optional policy for motorists who want to insure their vehicle instead of getting comprehensive insurance in one policy document covering the two types of insurance.

The new system aims to achieve the highest standards of transparency in line with the demands of the local market and national economy, the authority said.

A new provision regarding compensation stipulates that motorists involved in accidents have the right to obtain a daily amount of Dh300 for 10 days to rent a vehicle.

Regarding amendments to the unified policy for insurance against loss and written off vehicles, the new policy includes additional deductible amount decided by the insurance company, which is a maximum of 10 per cent of the compensation value if the driver is under 25 years of age, a maximum of 15 per cent of the compensation value for public vehicles and taxis, and a maximum of 20 per cent for sports and modified vehicles.

In case of the death of one member of the insured family, or the driver of a rented vehicle, or public vehicle, or a driving-learning vehicle, the insurance company is liable to pay Dh200,000 for each dead person.

In case of injury, the liability of the insurance company will be paid according to the extent of the disability.

The insurance company is obliged to repair the damaged vehicle and pay the market value of the vehicle if the vehicle repair cost exceeds 50 per cent of the car’s market value, provided the insurance company’s liability does not exceed Dh2 million.

Husbands, wives, children and parents will be included in the insurance coverage. A passenger is defined as a person who was inside the vehicle or getting in or off the vehicle. The maximum limit of insurance company liability to any claim arising from one accident is the value determined by a court.

Mandatory health insurance set for Dubai’s small companies

DUBAI // Health insurance cover will be linked to residency visas for small companies in Dubai within weeks, Dubai Health Authority has said.

Companies with fewer than 100 employees, of which there are about 135,000 in the emirate, are in the final group of employers to have to adopt mandatory health insurance for employees, after the deadline previously passed for larger companies.

Companies should now present their employees’ health insurance certificates along with the other required documents when renewing visas, said Dr Haidar Saeed Al Yousuf, director of health funding at DHA, to The National’s Arabic-language sister paper, Aletihad.

Dr Al Yousuf added that DHA will be launching a healthy behaviour incentive programme that offers incentives to insured people who follow a healthy lifestyle that reduces their risk of diseases.

New mechanisms and systems have also been developed, in particular to prevent health insurance abuse. These will be added to the emirate’s health insurance system and will be implemented ahead of fines for violations beginning next year.

DHA intends to implement a system that links payment to quality, with a view to prevent health insurance fraud and abuse.

Currently, 85 per cent of people in Dubai have health insurance.

So far, 99 per cent of employees at the 300 large companies and the 3,000 to 4,000 middle-sized companies in the emirate benefit from health coverage.

DHA will launch an intensive awareness-raising campaign in mid-October aimed at promoting the health insurance system. It will cover local government authorities, public places and some private-sector companies.

5 things covered by home insurance in the UAE

How many of us have lost our smartphones or have come home to a flooded apartment, having to dish out thousands of dirhams as a result? Despite that, very few UAE residents buy home and personal belongings insurance policies.

Home insurance can cost you as low as Dhs19 per month, and can protect your property, belongings and home contents from very common accidents that we’re all exposed to here in the UAE.

MoveSouq.com and Qatar Insurance Company have shortlisted five very common accidents that a standard property, home contents and personal belongings insurance can cover:

Damaged smartphone

You can get cash back if you crack your iPhone screen. Personal electronics such as phones, laptops and cameras can be insured under a ‘Personal Belongings Insurance’ by your insurance provider. As long as you have declared the value of your phone upfront in your policy, with its serial number, the next time you accidentally drop your phone, contact your insurance provider and they’ll reimburse you the replacement cost of your screen.

Stolen smartphone or laptop

Losing your phone or laptop comes with significant woes as you’ve lost your contacts, valuable photos and documents. But at least there can be some relief if you’ve insured them. With a simple police report reporting the theft of your phone or laptop, your insurance company will reimburse you for the value of your items. This coverage is also worldwide – so you’re covered if your phone, camera or laptop is damaged or stolen on holiday. Declare your items upfront when you buy your policy with their serial number, and you’re all set.

Accidental house fire

As much as you think “that’ll never happen to me”, house fires are one of the most common claims for home insurance in Dubai. Only a few days ago, a fire ravaged Sulafa Tower in Dubai Marina. In 2015, there were 188 fires in residential units in Dubai, that’s one fire every two days.

Cigarettes, unattended candles and electric fires can put your homes at risk. A standard property insurance can reimburse you for the repair costs, and also provide you with alternative accommodation while repairs are being made.

Burst water pipes

Burst water heaters and leaking pipes are a common maintenance issue in Dubai. A recent report showed that up to 80 per cent of Dubai apartments complain of maintenance issues each year. If there is any damage to your furniture or floors from an exploding water heater, burst water pipe, or leaking water hose, your property and home contents insurance can cover it, as long as your furniture has been declared in full when you purchased your policy.

Flooding from the rain

Thunder storms in the UAE have left many residential and commercial units flooded in its wake. A home insurance policy will protect your property from flooding and the damage caused. You can expect to be reimbursed for your repair costs, and also get alternative accommodation while repairs are taking place.

More than 50% of UAE residents don't buy travel insurance

More than 50 per cent of UAE residents don't purchase travel insurance, despite their fears of travel-related incidents such as injuries and theft, a new survey has found.

With the summer travelling season well under way and Dubai Airports reporting an ever-increasing numbers of travellers month on month, travel insurance providers are preparing themselves for the surge in claims.

The survey of UAE residents by YouGov found that as many as 80 per cent of travellers have experienced some sort of travel-related incident, with flight delays hitting the top spot, followed by illness, and then by trip postponement or cancellation.

The survey also showed that theft was the top fear listed by 52 per cent of respondents, followed by concern about injury or accident at 44 per cent, and finally the loss of luggage. Despite these fears, the survey found that 58 per cent of residents don't purchase travel insurance, and a third say they only do so occasionally. 

With such high incidences of issues and wide-spread concern about the subsequent financial implications of facing issues when travelling, why is it that vacationers aren't more diligent about taking out travel insurance before they jet off? 

Jonathan Rawling, CFO of compareit4me.com, says: "It seems that people do want the safety net of travel insurance, but don't really know where to start. Most of us spend a long time saving for, planning and looking forward to our holidays, and the last thing any of us wants is to be thinking about what would happen if the flight was cancelled or overbooked or indeed, if our luggage didn't arrive at our destination or we were to have a medical emergency or loss of belongings while abroad."

"Travel insurance takes all of these worries away, leaving us to focus on enjoying the well-deserved trip. In addition, all of this peace of mind often comes at just a tiny fraction of the cost of your trip," notes Rawling.

He also adds that compareit4me.com has teamed up with Allianz Global Assistance to introduce travel insurance to customers, offering various types of travel cover under three distinct brands.