DUBAI Elderly expat residents in Dubai have to shell out a premium of anywhere between Dh12,000 and Dh20,000 a year to get even a basic health insurance cover, XPRESS can reveal.

With less than a year left for all sections of society, including senior expats and elderly parents, to secure mandatory health insurance, industry experts said the high cost of existing packages could prove to be unaffordable for many residents, even as insurers face the challenge of covering pre-existing medical conditions, as stipulated.

Albert Rodrigues, managing director, Millennium Insurance, said: “Insurers now have to offer insurance to all individuals, including senior expats, as they cannot refuse anyone, anymore. However, whilst the policies for elderly expats may fit the requirement, it may not necessarily fit their pockets given their age and medical conditions.”

According to him, premiums for “a decent level of regional cover” in the current market begin from around Dh12,000 for an expat aged between 60-70 years, going up to Dh13,500 for the 70-plus category and Dh15,200 for those aged 80 and above.

Alison Fenech, head of general insurance at Nexus Insurance Brokers, said: “We deal with a range of local and international providers that offer multiple levels of coverage. Starting premiums would be Dh12,000 a year for those aged 60-70 years, Dh16,000 for the 70-80 band and Dh20,000, subject to referral, for those aged 80 and above.”

The rates are indicative and approximate, subject to loading upon declaration of any pre-existing medical condition and underwriting decision.

Fenech said: “Many premiums tend to be way out of the client’s budget due to the fact that the mandatory system being implemented requires pre-existing conditions to be insured without exception.”

Worried lot

Expats with elderly parents are a worried lot. Some said they can neither afford the high premiums nor can they send their parents back home as they are dependent on them.

“My mother is 83 and she has been living with me in Dubai for the past four years. With mandatory health insurance being linked to issue of visas, I am very concerned. Her visa comes up for renewal in June next year, but I don’t know how I can budget Dh20,000 to get her insured,” said Sheela, a media professional in Bur Dubai.

“My mother, 64, and father, 67, are both dependent on me. Insuring them will cost me at least Dh24,000 a year. I cannot afford that. But how do I tell them to go back to India – Dubai has been their home for eight years now?” said Firoz Khan, another expat from Al Nahda.

Expats like them are hoping more viable insurance plans will become available in the market as the July 2016 deadline nears.

Sanjay Tolani, managing director of Goodwill Insurance, said: “This is the last segment that needs to get covered under the mandatory health insurance scheme. Expats with elderly parents have begun scouting for policies but are not yet purchasing them. They are waiting to see if the premiums will get any cheaper in the coming months.”

Price justification

Dr Haidar Saeed Al Yousuf, Director of Health Funding at Dubai Health Authority, told XPRESS in an interview earlier: “Companies will come up with packages for them once the whole population is covered. The premiums will be higher in line with their risk profile, but not as high as they are today.”

Rodrigues said he expects applications by elderly expats to go back and forth as insurers would ask for medical reports which the applicants may not always be able to furnish. “The challenge is the price justification to the benefit, as most of these seniors would have existing medical conditions. With pre-existing conditions to be insured mandatorily, insurers are bound to load premiums appropriately. This loading is sometimes too unreasonable for the level of the medical condition, at the same time the parent has no option but to accept it which may seem a bit unfair.”

But will an insurance policy from the home country be valid here?

“This depends on the insurance company in the home country. Some policies do cover emergencies outside the home country, however, again this comes with a limited period so it may not apply to resident parents here. Also at visa renewal time, the authorities would like to see a health insurance policy from an insurer registered within the UAE,” said Rodrigues.

Fenech said: “If the cover is offered from an international provider that operates in the UAE, the policy can be transferred and the cover will continue. Otherwise, it will serve for emergency treatments and for a limited time only (usually 90 days).”

 

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