The Importance Of Having Insurance In Dubai

Types Of Insurance Available In Dubai

There are a number of different types of insurance that are available in the city of Dubai. Some of these are-

Life Insurance- This insurance is a contract that is signed between a person and a company. Under this contract, following the death of the policyholder, a lump sum amount known as a death benefit is paid to the beneficiaries of the insurance following an exchange of a premium. The premium has to be paid at regular intervals by the policyholder prior to his/her death.

Health Insurance- This is an insurance type that helps the policyholder by offering them financial assistance during times of healthcare expenses being needed. This insurance is also known as the medical insurance policy. The policy comes into action following the exchange of a premium paid at regular intervals by the policyholder.

Property Insurance- Under this form of insurance, financial reimbursement is provided to the owner or a renter of a structure. Along with this, reimbursement is also provided for the contents of the structure in case of damage or theft. A number of different policies come under the bracket of this insurance. These are-

• Homeowners Insurance
• Renters Insurance
• Flood Insurance
• Earthquake Insurance

Liability Insurance- Policy owners are provided with protection from injuries or damage to other people or property under this form of insurance. Therefore, this insurance then covers legal costs or payouts that would be required under the circumstance.

Understanding Insurance Coverage And Policies In Dubai

Dubai has a form of insurance available which is compliant to the principles of Sharia or the Islamic Law. Several insurance providers offer this form of insurance policy. Individuals are held responsible for the protection of a collective group. This system is called Takaful. Donations are made by participants in a shared Takaful fund, with the money protecting all against combined risks.

Also, the surplus is shared equally among the participants as well. No prior expectations are made of fixed returns with the company managing the fund on behalf of the people. 

The Dubai insurance market has a wide range of policy options. A number of factors are to be taken into consideration while taking the decision about what policy to be taken up. This has to be done after weighing out all the pros and cons of the available insurance policies. In an ideal insurance policy, a wide network of hospitals and medical centers are covered, along with an extensive geographical area, it should have an efficient customer service, among many other requirements. 

Choosing The Right Insurance Plan For You: Factors To Consider

There are a number of factors that need to be taken into consideration while choosing the ideal insurance policy for you. Some of those factors are-

The General Aspects of Coverage- It is very important to understand the coverage that your insurance provides to you. The maximum limit that will be paid under the policy for all the medical expenses that have been incurred during the period of the policy is known as the maximum coverage limit of the insurance. 

Also, the ‘area of coverage’ should also be taken into consideration. This is the geographical area that would come under the insurance and could even go as far as other countries which might come under the insurance. 

Therefore, both the coverage area and the coverage amount are important factors when selecting an insurance policy.

Medical Network- It is also very necessary to ensure that the insurance you might choose covers all major hospitals and medical providers. Also, it has to be ensured that hospitals close to one’s residence should be a part of the policy. Furthermore, it is necessary to ensure that all medical facilities and treatments are available at the centers available under the insurance.

Benefits- It is highly necessary to look at the benefits that are provided with different insurance policies. Under some health insurance policies, certain benefits such as dental, optical, and wellness benefits are also provided.

Role Of Insurance In Financial Planning And Risk Management

A very important role is played by insurance in providing financial planning and helping in risk management for people. It ensures that the risk of losses is reduced. This is because financial assistance is provided by insurance and therefore, throughout the existence of the policy, financial risks are reduced, which in turn also helps in financial planning.

In regards to a business, being insured allows the company to be more productive as they need not worry about losses caused by accidents anymore. Therefore, more time and funds can be invested into the company, hence maximizing benefits. 

Also, a policy can also be used as collateral in order to secure a loan. Therefore, it acts as a way to improve credit scores as even at death, there is a guarantee of reimbursement. Hence, this results in insured people being able to receive more loans. 

Insurance helps in financial planning as it helps people be ready for any unforeseen circumstances and also ensures that a person’s love ones might not need to suffer following their passing away. This sense of security is really useful and important in life.

Benefits Of Having Health Insurance In Dubai

COVID-19 and the pandemic have made us realize how uncertain life can be. One might never realize and in a minute might be needed to be rushed to the hospital for life-threatening issues. Life is so precious and we might not even realize when something might happen to us or our loved ones. 

With the ever-rising costs of medical treatments, it has become increasingly important for people to opt for health insurance in Dubai which would provide coverage for medical expenses. 

In Dubai, a health card can be issued to citizens of the UAE, GCC Citizens, Expatriates, and People of Determination. With the help of health card, healthcare facilities, and medical services can be availed by people at discounted prices at government hospitals. This form of insurance saves people from expensive medical bill in the long run after the payment of a one-time annual premium only.

Protecting Your Assets With Property Insurance In Dubai

It is highly essential for one to secure their assets via property insurance in the city of Dubai. A lot can happen in the blink of an eye and having an insurance assures one of financial security when it comes to damage against your property. 

Even though Dubai has maintained an image of being a safe city, unforeseen circumstances can take place and it is always beneficial to be prepared. As they say, it’s better to be safe than sorry, therefore, it is essential to purchase coverage for your property before a disaster strikes.
 
An example of a disaster occurring in Dubai was when the Address Downtown was plagued by fire during the celebrations of New Year’s Eve one year. Also, 86-storey Torch Tower located at the Dubai Marina has also been damaged by fire at one point.

Life Insurance Options In Dubai

There are a number of options to choose from when it comes to life insurance policies in Dubai. Some of these are-

1. AXA Term Life Protect
2. MetLife Future Protect
3. Alliance Whole Life Assurance Plan
4. Zurich Futura
5. Salama Hyat Secure
6. Noor Takaful Life Care
7. Takaful Emarat Lifespan Plan
8. Union Super Secure

Impact Of Dubai Tax System On Insurance Premiums

The impact of the tax system of Dubai is different on different types of insurance. This can be seen as for-

Life Insurance- In Dubai, Life Reinsurance services and Life insurance are exempt under Value Added Tax. This is done if the recipient of the policy is a citizen of the UAE. But, if the policy owner is not from the UAE, then the policy is considered as being zero-rated. 

Travel Insurance- For travel insurance, a standard rate of 5 percent is levied on residents of the United Arab Emirates. If the policy owner is not from the UAE, then even the Travel Insurance is zero-rated. 

General Insurance- For General insurance, again, a standard rate of 5 percent is levied for residents of the UAE. Again, for residents not from the UAE, it becomes a zero rate. This is applicable to insurance like motor insurance, real estate insurance, fire and theft insurance among others. 

Role Of Insurance In Protecting Against Unexpected Events

If one has a feeling that the future of themselves and their loved ones is secure, sleep at night would be way better than the usual. Life is full of uncertainties, and these could come up at any second, be it an untimely death or a sudden medical emergency. Therefore, it becomes more and more important for one to have insured themselves against all forms of risks in order to protect oneself and their loved ones from any unexpected events.

A home insurance plan would help a person get coverage for any damages that might happen to their home during a natural calamity or an accident. A health insurance plan would help in repaying the medical bills in case of any medical emergency that might arise. Similarly, a life insurance plan would provide the loved ones of a deceased with reimbursement following the death of the policy owner.

Therefore, in case people have purchased certain insurance plans, they are protected from a wide range of unexpected events that could happen at any moment.

Understanding The Claims Process And Resolving Disputes

Following the requirement of insurance to come into action, there are certain processes that are needed to be followed in order to get the claim that one requires or deserves. Sometimes, there might be a difference in the interpretation of the claim between the insurer and the insured. Such circumstances result in disputes arising between both parties and could then result in adequate claims not being provided or claims being rejected as a whole as well. 

There are some common claim disputes that arise when working towards getting a claim for one’s insurance. These are-

Fire damage to one’s home or theft of belongings is compensated via home insurance. This insurance would help in replacing the property or repairing it if needed due to some unforeseen circumstance.

A commonly held insurance by tenants and leaseholders is home contents-only insurance. Under this plan, only the contents of the house, and not the building itself, are insured. This type of insurance usually has a number of disputes with it as there might be differences in opinion in understanding if something comes under this insurance or not.

Claims of health insurance under issues such as medical negligence could be post-surgery or during a period of care. These claims usually follow a lot of disputes as they have to be heavily verified and require adequate evidence and proof in order to come into action. Such evidence and proof is usually then worked out by third-party medical experts to help the case.

Conclusion: The Importance Of Having Insurance In Dubai For Financial Stability And Security

Therefore, it can be understood that it is really very important to have an insurance in Dubai. This is because life continues to be uncertain and even though Dubai is considered as being one of the safest cities in the world, it is always better to be safe than sorry.

Having an insurance in a city like Dubai with its ever increasing medical expenses and general expenses provides policy holders with a sense of financial stability and security as their income is safe even if an unforeseen circumstance does take place.