Sunday, July 25, 2021

UAE: Authorities prohibit adding benefits to basic health insurance package

The Dubai Health Authority (DHA) has directed insurers selling the AED550 ($150)-a-year mandated basic health cover plan in Dubai to refrain from padding these policies with additional benefits.

However, if the insurers still want to offer enhanced covers, they can only sell such policies at a minimum premium of AED750 a year, reported Gulf News citing the DHA.

In issuing the directives, the DHA is stepping in and issuing clear instructions on what health insurance can be sold and at what price.

Mr M Rajendran, managing director of the insurance brokerage and consultancy, Al Futtaim Willis, said, “The DHA has mandated that the minimum premium on any DHA-approved enhanced cover should not be less that AED750 – and that’s excluding ‘basmah’ and VAT.”

The ‘basmah’ is an additional sum on top of the approved basic insurance cover, in the event the insured needs cancer treatment.

Budget-conscious customers

Insurers fight for business from the basic health insurance policy. This is because customers have become more budget-conscious and they buy the health insurance cover that offers the most benefits – but at the lowest possible premium.

The basic health insurance plan, called the Essential Benefits Plan (EBP), offers the minimum level of health insurance cover mandated by the authorities.

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