Blog

The Cost of Not Having Life Insurance

The Friends Provident International (FPI) survey conducted in 2016 revealed that 58% of the respondents do not have life insurance in UAE. Also known as life and critical cover, females were even less likely to have it as compared to men!

The main reason cited by the respondents for not opting for life insurance is that it is too expensive. In UAE, only basic health insurance in mandatory for every resident of the country, hence, more than half the population does not opt for life insurance.

However, in these catastrophic timings, a little extra money spent on life insurance is invaluable for you and your loved ones. Some reasons to definitely opt for life and critical insurance are:

To protect your loved ones

If you are the sole bread earner of your family, then opting for life insurance should be your priority. This will ensure that your family be payed a fixed amount even if you pass away.

A type of inheritance

Even if you have not been able to pass on other assets to your children, life insurance is a form of inheritance that can be provided to your children after your demise if you name them as beneficiaries.

Additional security

It is good to ensure in your livelihood that your children’s education and marriages will be covered should you not be alive to oversee these important milestones yourself.

Unforeseen major illnesses

With life threatening illnesses on the high requiring thousands if not millions of dollars, you should play it safe by availing life and critical cover. In such a case, even illnesses like cancer and its treatment and chemo will be fully covered. If in such times you are without insurance, you may not be able to afford a good treatment for yourself and your loved ones.

Peace of mind

Buying a life insurance definitely gives one peace of mind knowing that there is some form of support for their family even if something happens to them.

Travel Insurance – Yay or Nay?

Expats consists of 90% of the UAE market, hence, travel to hometown atleast once a year is given for everyone in UAE. However, very few expats care to buy travel insurance before their travel which is a big mistake on their part.

A comprehensive travel insurance will cover almost all aspects of your trip keeping you stress and tension free. The following items are covered in travel insurance:

  • Medical emergency
  • Flight cancellation/delay
  • Baggage delay
  • Personal accident
  • Loss of travel documents
  • Theft

A travel insurance however, will not cover the following:

  • Claims related to wars
  • Claims related to terrorism
  • Medical conditions that were present prior to travel

Costs

Travel insurance policy costs the same in UAE as it does anywhere else in the world. A travel insurance is approximately 110aed per person. However, USA and Canada tend to be slightly pricier. This mere 110aed will cover up to $250,000 emergency medical, $2500 trip curtailment as well as $2500 trip cancellation.

It is also important to note that if you plan to indulge in adventurous and dangerous activities while on the trip, your premium will be slightly higher. It will be higher also in the case of visiting a war-stricken country.

In short, travel insurance is a small price to pay for a hassle free trip and I would highly recommend it to all the drivers.

Importance of Timely car Insurance Renewal

A responsible car owner keeps track of his car service timelines as well as insurance renewal dates. In a country like UAE, timely insurance renewal is absolutely vital as any violation of the law is heavily fined. Driving a car without insurance is against the law in the UAE. Hence, you should renew your insurance on time to save any trouble with the authorities.

Usually car insurance policies are renewed every 6 months or 1 year. Car insurance companies do notify the customer upon renewal of the policy through email or a call. However, in case you miss the reminder and do not renew your policy on time; you may be at a financial and physical risk.

It is also important to note that there is no grace period in insurance renewal. If you fail to make the payment on time; your car will no longer be insured under any policy. Even if you plan to switch insurance providers or insurance policy; you need to do it before your current insurance expires to avoid any risks.

Some difficulties that you can face without insurance renewal are:

  • If your insurance renewal has lapsed for a long time, you may be required by law to purchase a completely new policy that may be expensive.
  • A fine/penalty will be charged by the authorities for the number of days your car remained uninsured.
  • Driving a car without insurance can exposes you to unnecessary risks. You may end up paying damages for your car and other person’s car in case of an accident.

Hence, your car insurance renewal date is worth remembering to ensure you face no trouble with the law or in your personal life.

How to get the most out of your Health Insurance

Health insurance is compulsory for the expats, residents and their families living in the UAE. Let’s face it, insurance does not come cheap and hardly anyone is taking the proper steps to ensure they derive full value from their health insurance premiums.

Some good tips to kick off the New Year by making most of your insurance are:

1. Choose the right plan

Your family’s insurance needs may vary from year to year. Be sure to change your insurance plans accordingly every year. If your wife is expecting, be sure to get more gynecological and neonatal coverage. Similarly, choose the correct insurance if you or your family member has upcoming dental work.

2. Understand your insurance plan

Do not choose and renew insurance plans every year with a blind eye. Be a responsible adult and go through your insurance plan every year. Take note of the different services, payment terms and coverage details that are mentioned on it.

3. Choose in-network providers

Choose the insurance network that covers you and your family’s primary doctors. This way you will be charged a low amount for the doctors’ services.

4. Plan more doctor visits after your max out on your deductible

Once all your deductibles are met, the amount you pay out of your pocket for healthcare will decrease significantly. Hence, when your deductibles are met, it is time to visit your “extra” doctors such as ophthalmologist, dermatologist, etc.

5. Keep your eyes open for deals and discounts

Keep visiting your insurance provider’s website for any information on new perks or promotions. Some insurance companies also offer wellness programs, fitness classes, and detailed check-ups.  Try to avail all these services and discounts from time to time.

How will VAT affect car prices and the automobile market

The UAE auto industry has been facing precarious times since the past two years. With the year 2018 starting with Value Added Tax (VAT); another set of challenges are expected to be faced by automobile companies. In the UAE, car supply exceeds demand for new vehicles and there is an oversupply of pre-owned vehicles. Hence, retail prices are under constant pressure to be reduced that could affect profit margins as well as operational profitability. Car dealers also try to entice customers with lower maintenance/service costs and free insurance for the year of purchase.

With the VAT further increasing car prices by 5%; automobile companies do not know how demand can be made equal to supply. It is predicted that in the short term before VAT kicks in, car sales will increase as customers would want to avail the no VAT prices. Hence forth in the first half of 2018, car sales will experience a slight dip as customers reel from the effects of VAT on their monthly budgets and standard of living. It is expected that car sales will return back to normal after UAE residents become used to VAT and continue their lives as before. Dealers are expected to bear partial VAT costs so that sales of automobiles do not experience a significant fall.

The UAE automobile industry may face challenges but the positive factors of this market insure that this industry keeps growing steadily. Positive factors include; low fuel prices, low custom duty, high disposable income and satisfactory tax structures. Moreover, the affordable financing and insurance options also make it easier to own a car in the UAE. Hence, it is speculated that VAT will not cause a significant wave in the automobile market.

How will VAT affect auto insurance?

It is common news for UAE expats and nationals that they will be welcoming the new year 2018 with a 5% Value Added Tax (VAT) tax applied on almost all goods and services. The government will be imposing taxes on non-life insurance products that will have a significant effect on health and auto premiums. Life insurance is currently going to be exempt from VAT.

Where it is simple to understand that the new insurance premium will be subject to 5% VAT; businesses and individuals are confused about those insurance and cleaning contracts that have been purchased in advance and extend well into 2018. Moreover, since UAE has never before experienced any form of tax, businesses are struggling with the introduction of the correct language for their tax clause. The tax clause should be comprehensive and cover all aspects of the new tax imposition for the customer to clearly understand all tax implications that they will face after 1st January, 2018.

Legal experts have urged businesses and individuals to go through their contracts to verify provisions for tax under the new law. A silent contract that does not mention VAT will deem the customer exempt to pay the taxes for the services paid for in advance. Also, a contract clearly mentioning that “prices are inclusive of VAT” will also render the customer on the winning side. However, those companies that have done their homework well would have most likely included the term of “exclusive of VAT” in their new contracts of 2017. Hence, for these companies the entire tax burden will fall on the customer who would be legally liable to pay for the extra VAT cost on the prepaid insurance and cleaning services purchased.

Since VAT is a new occurrence in the UAE, businesses and individuals will both be learning from their mistakes until they get the hang of VAT regulations entirely.

Takaful Emarat Merges with Al Hilal Takaful

It was reported in “The National”, On December 19, 2017 that Takaful Emarat, A renowned Insurance company has decided to merge with Al Hilal Bank’s Insurance organization to generate Dubai’s top takaful group.

In 2016, the two chains have signed a combined deal of Dh900 million gross contributions in written. The settlements shall be made in the quarter of 2018 to Al Hilal Bank which has been confirmed by UAE Insurance Authority. “This is a transformational deal for Takaful Emarat that will drive growth for the group through a wider range of Takaful services and a larger customer base”. Mohammad Al Hawari, managing director of Takaful Emarat. Moreover he said, that they are progressing in the development of their digital platform, which will result in well planned and affordable services for their customers. According to a statement Takaful Emarat delivers life and health insurance for customers, mainly in Dubai and Northern Emarat.AL Hilal Takaful deals with general license, which offers a wide range of facilities to their customers, operates mostly in Abu Dhabi.Takaful Emarat was suggested by KPMG deal advisory and law firm Allen and Overy,where as Al Hilal Takaful was advised by Milliman and Herbert Smith Freehills.The deal will facilitate an inclusive range of services to the customers nationwide. The CEO of Al Hilal Bank, Alex Coelho said that they are working hard to ensure their customers with smooth transition.

UAE, which is considered to have biggest Insurance markets are surrounded by huge number of competitors within the region. Therefore, in order to obtain the act of developing Top Takaful Insurance organization, they are struggling day and night to give their customers a massive amount of advantages, one could avail through their services. Hence, this new move of kindness would surely effect other Insurance companies to look forward and make certain changes as above for growing their business.

Third Party Versus Comprehensive Car Insurance – Differences explained

Owning a car is actually a necessity in a city like Dubai where commuting takes a large chunk of your time. Along with a car, its insurance is also a necessity as RTA does not register new cars or existing cars for the coming year without a valid insurance plan.

There are 2 types of insurance plans to select from; third party insurance and comprehensive insurance. The choice can be pretty simple if you understand the differences between both. Also, the choice depends on your own preference; whether you want to cover any damage to your car or cover the damage that your car causes.

In UAE, it is necessary by law to have third party insurance coverage. Hence, many people do not opt for the comprehensive coverage as it is not obligatory and they will have to pay more for it. However, truthfully, the benefits of comprehensive insurance outweigh the higher cost one has to pay for it. Third party insurance includes the other car that was in the accident but not your own car. It also includes third-party theft and fire as well as death or injury of the third party in an accident.

Comprehensive insurance as the word says, includes damage to your car as well as the third party car that was a part of the accident. It also includes vandalism, damaged glass, fire, damages caused due to an animal hitting, floods, and natural disasters.

Comprehensive insurance gives a peace of mind to the person that if an accident were to occur, his car repair as well as hospital bills will be paid for. This peace of mind may just be worth a few extra dirhams!

Looking for a motor insurance policy? Get a quote from our experts today!

New Hospitals to be Launched

On the 30th anniversary celebration of corporation, Dr.Azad Moopen, founder, chairman and managing director of Arter DM Healthcare group have presented his recent initiative to establish two hospitals in Al Ghusais and Muhaisnah in Dubai shortly. The purpose of developing such hospitals is to provide complete health care facilities economically that would be superior for expatriates – as reported by Gulf News on Tuesday 12th December 2017.

Health Insurance is mandatory for the families living in Dubai. As per labor law, it is necessary to carry a health card that allows to enter limited number of hospitals and health care institutions under normal coverage. It was officially announced by Dubai Health Insurance law in 2013 which came in accordance from 2014. According to Dr.Azad Moopen, around 70 percent of the expats could afford only basic Health Insurance in UAE, which is bit disappointing. His objective is to deliver good and cost-effective health care facility to the insurers who are not eligible to manage paying extra money in buying different Insurance schemes. Dr.Azad came to UAE with his special skills in medicine. He started his career by developing a clinic in Bur Dubai years ago. His motive is to deliver high quality of health care service to every individual covered with basic Insurance. Today there organization has been presented in nine countries giving there employs complete benefits regarding health care. In June he had launched ‘Aster Volunteers’ program that conducted approximately 11,000 surgeries with no charges all around the world in their hospitals and entered a sum of 2000 volunteers that conducted various blood donation operation and educated a huge ratio of people supporting in basic life which was one of their great achievements.

Thus, his effort and enthusiasm towards Health care is quite appreciate able and up to the mark for the residents of UAE.

News Update – Coverage for 3 Types of Cancer in Dubai

It was once said by Shaikh Mohammad bin Rashid al Maktoum Vice-President, Prime minister and Ruler of the UAE “We are building a new reality for our people, a new future for our children, and a new model of development” and this news is truly a major step towards this goal.

Gulf news has recently updated today Sunday 10th December 2017 ,that Dubai Health Authority (DHA) created in June 2007, has declared ‘Basma’ the step planned by Dubai Mandatory Health Insurance Company that involves complete screening and treatment of patients diagnosed with three kinds of cancers i.e. cervical, breast and colorectal cancers . The number of patients diagnosed with cancer are increasing day by day all around the world in which the most common cancer is breast cancer, cervical cancer and prostate cancer.

The idea behind this initiative is to detect the early stage of the disease through screening and start the treatment process as soon as possible. Patients mostly detect these deadly diseases in the last stage and due to that they could end up becoming difficult to get cured. ‘Basma’ plan could thus help patients to get treated accordingly through complete supervision and care by the company. The screening process is the best way to detect cancer in an early stage. According to the Dubai Mandatory Health Insurance scheme the total coverage of the insurer was limited to Dhs 150, 000, but now it has no limitation because they’ve decided to give full coverage until the treatment has been fully cured. Their goal is to provide an improved health care service, satisfying and supporting the cause throughout the city. Currently the Company has introduced screening for new born, diabetic and heart patients. Further they are planning to introduce screening for Hepatitis C patients in future.

Hence, this new initiative of life saving program is definitely a strong and commendable step towards a more holistic medical cover for the residents of UAE.