UAE – Insurance benefits from two government decisions
Wednesday, 01 04 2017, Category: Insurance and Reinsurance, Country: U.A.E
The insurance sector in the UAE benefited from a great support lately due to two governmental decisions that will be implemented with the start of year 2017.
The government of Dubai decided that health insurance would be compulsory for all the holders of a residency permit in Dubai including families, domestic helpers and assistants.
According to sources in the insurance sector, insurance companies were able just in the month of December 2016 to insure more than 10% of the holders of a Dubai residency permit i.e. approximately 400 thousand expatriates against total premiums amounting to half a billion AED for just that month.
Moreover, the second decision was the related to the instructions of the Insurance Authority to set motor insurance prices by fixing a minimum price for motor insurance contracts (Third Party and Comprehensive), disallowing lower rates than the minimum, launching mechanisms against price competition. Furthermore, additional services are offered to the insured such as the replacement car and raising the value of compensation.