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.

Zurich says to exit UAE general insurance business by end-2016

Zurich Insurance Group will exit its general insurance business in the United Arab Emirates by the end of 2016, after a review concluded the investment needed in the market was not justified by its limited growth potential.

Zurich, which will continue to offer life insurance in the UAE, has been reviewing its global general insurance business, its biggest source of revenue and which sells things like property and casualty insurance, under the unit's new boss Kristof Terryn.

Companies not complying with Dubai’s mandatory health insurance face hefty fines

DUBAI // Businesses failing to comply with the Dubai Health Authority’s mandatory health-insurance plan face hefty fines, and new visas will not be granted for employees until they fall in line.

Phase two of the plan, which includes about 3,000 companies with between 100 and 999 employees, began on August 1, ensuring that another 600,000 people now have health insurance.

It has also emerged that the national health insurance company, Daman, will soon expand its services in the Northern Emirates, beyond its existing 450 providers in the area.

The improved cover will benefit employees in Ras Al Khaimah, Ajman and Umm Al Quwain.

A recently opened Daman branch in Sharjah has been performing well and has encouraged the call for more regional branches.

Daman’s chief executive for business operations, Dr Sven Rohte, said a broad portfolio of insurance programmes meant the insurer was well positioned to cope with the expansion.

Compulsory health-insurance schemes in Abu Dhabi and Dubai have also meant more business for insurers, and hope among residents in other emirates that this will be replicated across the country.

Phase three of the insurance mandate in Dubai will cover dependants of employees, with a June 31, 2016 deadline for compliance, after which there will be 100 per cent coverage in the emirate.

In addition to dependants of expatriates, this phase will include employees of smaller companies and domestic workers.

Dr Haidar Al Yousuf, the director of health funding at the DHA, said businesses yet to comply with phase two of the scheme would be penalised.

“Strict enforcement is now taking place in partnership with the General Directorate of Residency and Foreigners Affairs,” he said.

“Certificates of health insurance now need to be submitted to them as part of the visa process.

“For companies that fall under phase one and two of the insurance law, no new visa can be submitted without insurance any more.”

Although not yet mandatory for companies to extend insurance to spouses, dependants and domestic workers, basic packages ranging from Dh625 to Dh800 have been arranged by the DHA.

The mandatory roll-out began in Dubai in February last year, when just a million of the city’s estimated population of 2.3 million had insurance.

Dr Al Yousuf said a small number of companies in Dubai were yet to sign up to the scheme and would be contacted and hit with a penalty notice.

“The penalties will be greater than the cost of the insurance, so it will make sense for them to comply with the regulations.

“They have already passed the deadline, so the longer they spend without insurance, the greater the penalties will become.

“If they are still not responding, we will refer them to the licensing entities to withhold their licence.”

Bre Hill, a regional human resources manager at MediaCom, which employs about 120 people in the Mena region, said: “Access to quality health care is a fundamental right and we have ensured this is something that is part of our core benefits for all staff. We support our employees by offering an inclusive policy for all, with direct billing at major health providers in the UAE.”

Exact details of the fines to be imposed have not yet been announced, but they will rise every month that businesses operate without insurance.

No Dubai visas without medical insurance: Dubai Health Authority

The mandatory insurance scheme linking application for a visa in Dubai to medical insurance is now in place, the Dubai Health Authority (DHA) has confirmed.

Residents applying for a new visa or visa renewal must be able to demonstrate that they are covered by medical insurance, unless they are part of the last phase of the rollout of the scheme, which looks at a deadline of June 2016.

Employees of companies contracting more than 100 employees must comply with the new rules, which are in place since the beginning of this month.

Medical certificate

When applying for a new visa or visa renewal, a medical certificate must be presented.

The medical certificate is a document provided by the insurance company stating that a person is covered by medical insurance, explained Haidar Al Yousuf, Director of Health Funding, DHA.

"All insurance companies should be able to provide this document free of charge.

"When visiting the General Directorate of Residency and Foreigners Affairs (GDRFA), this document must be presented along with other documents required for a visa or visa renewal.

"When applying online, there is an option to upload the document when submitting the application," he continued to explain.

According to the director, there was a minor change made to the system after the new rules were in place.

"Whereas the system first asked for the document with an upload option reading 'other documents', it now reads 'scan of the health certificate'."

However, al Yousuf assured that as employees are sponsored by their respective companies, the application procedure will be carried out by the company.

On the same note, the company is responsible for the provision of medical insurance, and if this is not provided on time, any potential fine for overstaying would come to the company, he explained.

Visitors to Dubai

Visitors to the emirate will also be required to have a medical insurance coverage upon entering Dubai, however, details of this part of the scheme are yet to be announced.

"There will be a comprehensive system in place and the details of this system will be announced at a later stage."

Currently, visitors applying for a visa through the GDRFA are already required to purchase medical insurance upon purchasing a visa.

However, this rule does not apply to everybody, as some individuals are sponsored by organisations or do not require at all.

"There are other groups that are currently not covered by this rule, but they will be under the new system," said al Yousuf.

The official date for the linking of the visa to medical insurance was August 1, 2015. However, the GDRFA and the typing centres employees in the emirate were not aware of the new rule when asked by Emirates 24|7 on August 3.

"The online application procedure had to be fine-tuned, but once that was done the system was in place. It is now fully implemented," said Al Yousuf.

Currently phase 1 and phase 2 of the mandatory scheme have been completed, covering companies’ with more than 1,000 employees on their sponsorship and companies with 100 to 999 employees.

Companies with less than 100 employees, and spouses, dependents and domestic workers are part of phase 3 of the rollout.

"We are still counting but it looks like the population that is covered by medical insurance now stands at 2.7 million. We expect that 3,000 companies, consisting of a total of 600,000 employees have complied with the rules."