Emirates Insurance Authority Warns Against Unlicensed Health Insurance Sales
Consumers cautioned to purchase health insurance only through licensed firms and intermediaries.
The Emirates Insurance Authority has issued a warning regarding the purchase of health insurance policies from unlicensed service offices, emphasizing that such transactions should be conducted solely through insurers and intermediaries licensed by the central bank.
Consumers are advised to thoroughly understand the terms of their insurance documents to ensure coverage meets their needs and agreed benefits.
Abdul Mohsen Jaber, a board member of the Emirates Insurance Authority and chairman of the health insurance committee, highlighted concerns that reliance on advertisements from 'service offices' promoting significantly low prices could lead to complications when insured individuals require health coverage that is not available.
Jaber's comments were in response to inquiries received regarding advertisements for health insurance policies starting from 1,000 dirhams.
These offers, widely shared on social media platforms, are presented as 'Ramadan specials,' with promoters claiming to offer health insurance for various groups, including individuals, investors, and holders of golden residency permits.
He stated, 'Health insurance documents should only be sold by licensed entities, whether an insurance company or an intermediary, and not by service centers licensed for other types of services, such as residency processing.'
Furthermore, Jaber urged consumers to verify the health insurance policy they are purchasing to ensure it meets residency requirements and desired benefits.
They should compare the policy price against prevailing market rates to identify any inconsistencies that may seem excessively discounted.
He elaborated, 'There are minimum and maximum price limits established by licensed companies and intermediaries, with slight variances reflecting competition, ensuring their capability to cover insurance claims.' He cautioned that a very low-priced policy might raise doubts regarding the credibility of the entities selling these documents, highlighting the necessity for consumers to remain vigilant about these aspects before proceeding with any transactions.
Jaber also pointed out that the licensed companies and insurance intermediaries recognized by the central bank have established contact numbers, websites, and physical offices, providing assurance to consumers.
They are expected to offer a variety of options and prices that accommodate diverse insurance needs without exposing clients to future issues.
Recent statistics released by the central bank concerning the insurance sector in the UAE at the end of the third quarter of 2024 indicated that there are 59 licensed insurance companies operating in the country.
This includes 23 traditional national companies, 10 national Takaful firms, 25 branches of foreign insurance companies, and one branch of a foreign reinsurance company.
Additionally, the number of professions related to insurance totals 498, encompassing insurance brokers, agents, loss adjusters, insurance consultants, actuaries, health claims management companies, price comparison websites, and insurance producers.
Consumers are advised to thoroughly understand the terms of their insurance documents to ensure coverage meets their needs and agreed benefits.
Abdul Mohsen Jaber, a board member of the Emirates Insurance Authority and chairman of the health insurance committee, highlighted concerns that reliance on advertisements from 'service offices' promoting significantly low prices could lead to complications when insured individuals require health coverage that is not available.
Jaber's comments were in response to inquiries received regarding advertisements for health insurance policies starting from 1,000 dirhams.
These offers, widely shared on social media platforms, are presented as 'Ramadan specials,' with promoters claiming to offer health insurance for various groups, including individuals, investors, and holders of golden residency permits.
He stated, 'Health insurance documents should only be sold by licensed entities, whether an insurance company or an intermediary, and not by service centers licensed for other types of services, such as residency processing.'
Furthermore, Jaber urged consumers to verify the health insurance policy they are purchasing to ensure it meets residency requirements and desired benefits.
They should compare the policy price against prevailing market rates to identify any inconsistencies that may seem excessively discounted.
He elaborated, 'There are minimum and maximum price limits established by licensed companies and intermediaries, with slight variances reflecting competition, ensuring their capability to cover insurance claims.' He cautioned that a very low-priced policy might raise doubts regarding the credibility of the entities selling these documents, highlighting the necessity for consumers to remain vigilant about these aspects before proceeding with any transactions.
Jaber also pointed out that the licensed companies and insurance intermediaries recognized by the central bank have established contact numbers, websites, and physical offices, providing assurance to consumers.
They are expected to offer a variety of options and prices that accommodate diverse insurance needs without exposing clients to future issues.
Recent statistics released by the central bank concerning the insurance sector in the UAE at the end of the third quarter of 2024 indicated that there are 59 licensed insurance companies operating in the country.
This includes 23 traditional national companies, 10 national Takaful firms, 25 branches of foreign insurance companies, and one branch of a foreign reinsurance company.
Additionally, the number of professions related to insurance totals 498, encompassing insurance brokers, agents, loss adjusters, insurance consultants, actuaries, health claims management companies, price comparison websites, and insurance producers.
Translation:
Translated by AI
