As the coronavirus pandemic takes its toll all over the world, expats in the UAE will be relieved to know that they are financially protected.
“Almost all NRIs, particularly in Dubai and Abu Dhabi, have compulsory health insurance coverage,” said Mustafa Vazayil, managing director, Gargash Insurance Services.
“Those who have medical insurance need not worry about the coverage as the regulators have stipulated that free treatment should be given to all expatriates in the eventuality of them contracting covid-19.
“There is a large number of NRIs residing in the northern Emirates of the UAE who are not adequately covered. However, as per the new notification all expats will be given free treatment.”
In case of emergency
Dubai Health Authority (DHA), in a circular issued to hospitals based on directives from the Ministry of Health and Prevention (Mohap), said that all DHA-licensed health facilities must consider suspected or confirmed cases of covid-19 as emergency cases.
They must classify the cases in two categories: One for those with insurance coverage and another where insurance coverage is unavailable.
If the patient has insurance, the cases shall be treated as emergencies and insurance companies will honour any claims received.
For those who are not insured, “the cases shall still be considered emergencies and suspected or confirmed cases will not bear any payment of healthcare costs at any healthcare facilities”.
Critical illness cover
International Adviser previously quoted a senior official at LIC International who stated that some insurance regulators have designated covid-19 as a communicable disease to be included by any insurance policy for health cover under the critical illness category.
The official later clarified that no such inclusion was stipulated.
Critical illness cover protects a policyholder if he is diagnosed with a specified illness or medical condition during the term of the policy.
Now that the DHA has confirmed that those who have compulsory medical insurance should be given free treatment for covid-19, by default the policyholders will be covered for the disease, whether it is categorised as critical illness or not.
“The peculiarity of the notification is that the subscriber need not do anything. If there is a claim, or if he is tested positive for covid-19, or any claim arises due to the disease, he has just to avail that facility,” the official said.
“If death happens due to covid-19 the entire claim is admissible.”
Jerome Droesch, chief executive of Cigna in the Middle East and Africa, said in a statement that insurers are fully aligned and follow the guidelines issued by regulatory bodies, alongside the World Health Organisation and the US Centres for Disease Control and Prevention (CDC).
“Confirmed covid-19 cases will be treated as emergencies and costs for eligible treatment as required by medical professionals will be covered,” he said.
Anand Singh, senior associate in the insurance and reinsurance practice at law firm BSA Ahmad Bin Hezeem & Associates, said the UAE Insurance Authority issued a circular to all insurance companies and insurance-related professions providing guidance on precautionary and preventive measures to maintain public health in the workplace and ensure continuity of business related to the outbreak of covid 19.
The circular said companies should adopt the necessary policies and take measures that reduce the risks associated with the consequences of coronavirus on the insurance sector in the UAE.
Low penetration
Gargash’s Vazayil said that the insurance penetration among NRIs is low, for things like travel insurance or income replacement policies.
But with cancelled flights, redundancies and employees being asked to take unpaid leave, people are starting to worry.
“This is a reminder that there are lots of eventualities that can be protected under various policies. There are certain items which are not covered, but by-and-large there are insurance for most exposures,” Vazayil said.
Rushing to take out cover now might not provide the protection execpted however; as, for example, travel insurance policies usually include a clause that says “any circumstance leading to the relevant delay or cancellation of the flight which is existing, expected or announced before the journey is booked, is not covered”.
Editor’s note: The original version of the article reported that regulators in India and the UAE, among others, had designated covid-19 as a communicable disease to be included in any insurance policy for health cover under the critial illness category.
This was inaccurate and I apologise for any confusion it may have caused.
