Checking out on health insurance

Q: I'm hearing a lot about changes in the law in relation to health insurance. How would private health insurance benefit me and what should I be looking for in a policy?

A: Changes to the health insurance law have been and continue to take place in the UAE. Last year, the Health Authority of Abu Dhabi required that all employers must arrange for medical expenses cover for all expatriates and their families resident in Abu Dhabi. For lower wage earners, this was to be provided by Daman, the national insurance company, on a subsidised basis. For higher wage earners, a wide range of insurance companies offer products in this market.

Dubai is in the process of introducing similar legislation, with implementation expected in early 2009. However, at this point we do not know exactly what the rules will be.

There are - broadly speaking - two types of geographical cover and two types of insurers: regional and international. The latter will pay for treatment anywhere in the world. The insurance companies will be either local or international. The maximum amount of cover also varies, so it is important to check this.

Plans

Turning to the type of cover, many insurers offer standard plans which will pay out for emergency medical treatment only. Then there are plans which will pay for emergency treatment as well as what is known as elective treatment, where the client has chosen to receive medical treatment. This is obviously more expensive. On top of this, there can be plans which include things like routine dental treatment, routine (not just complications of) pregnancy and cover for chronic conditions like diabetes. The more cover provided, the more expensive the plan. All plans are generally annually renewable.

You should also look at things like coinsurance, excess (or deductibles) and exclusions. Coinsurance is where you are required to pay a certain percentage of the costs, say 20 per cent. An excess is the fixed amount of a claim that you are responsible for. You can often choose this amount from a specified range. Choosing a higher excess will reduce your plan premiums.

Watch out for how previous medical history is treated. Some companies will exclude previous medical conditions altogether. Some operate what is known as a moratorium clause. If you have a family, some insurers will write separate policies and charge for each family member whereas others may write one family policy and sometimes charge only for the first child.

About compulsory insurance for expatriates, if your company does provide you with insurance, you should check carefully that the cover fully meets your needs. Otherwise, you may find that when you need treatment, your claim is not covered. You may even have to take out your own policy to fill the gaps.

Remember that the type and amounts of cover for medical expenses insurance can be varied and you should really seek the advice of a professional broker before buying a plan.

- The writer is Training & Development Manager at Nexus, a leading financial adviser in the Middle East. The opinions expressed above are the writer's and don't necessarily represent views of Gulf News. Readers are encouraged to thoroughlyinvestigate all investment decisions.
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