Maintaining health insurance is vital

Question: I have been at my place of work in Dubai for a year now on a package that includes health insurance for me and my family. However, last week my boss announced that as the business was doing badly our monthly health insurance premium may not be paid. What can I do to make sure that my health insurance remains in place even if my company fails to pay the monthly premium?

Answer: The situation with your company's finances sounds serious, if they cannot afford to pay your monthly health insurance premium then it begs the question how much longer the business will be afloat. Health insurance is included in many people's packages in the UAE. However, in Dubai it is not mandatory for employers to pay for health insurance unlike the neighbouring emirate of Abu Dhabi — although the blueprint has been created in Dubai and is expected to be implemented in the near future.

As a result it is up to the discretion of each company in Dubai to either pay for health insurance or to leave it up to each employee to take out their own policy. What you need to find out from your boss is what type of health insurance the company has. It is most likely that your firm has a Group Health policy — if this is the case then you may suggest volunteering to take over the monthly payments or contribute to the costs. You will need to do this in discussion with your boss, and the insurance company and may require a new policy agreement between you and your employer to be agreed.

Alternatively, you could make moves to secure a policy as an individual for you and your family in addition to your company cover, but remember that getting individual coverage is typically more difficult than qualifying for a Group Plan.

Extremely important

Where policies are individually underwritten, the insurer will scrutinise your medical history and if you already have a medical condition they may refuse to insure you or place an endorsement on your policy saying they would not cover that pre-existing condition. Group plans are often written so you can still qualify even if you have a pre-existing condition because the risk is spread across paying members.

When applying for your own family medical insurance be sure to disclose any medical problems, no matter how insignificant you think they are. If you fail to do this the insurance contract could be rescinded if the insurance provider finds inconsistencies in your application and your medical notes.

Even though time is of the essence in your situation make sure that you look out for exclusions concerning pre-existing and chronic conditions before agreeing to any policy.

Also remember that dental and vision care may have limited or no coverage. Deductibles and Co-insurance are other elements to consider; Deductibles are the sums payable by the policyholder usually Dh50 to Dh100 for each episode that requires the use of the policy and Co-insurance is the percentage of the cost that the applicant has to bear for the cost of each treatment or investigation.

Health insurance is extremely important, so make sure you do your homework and seek the advice of an independent financial adviser who can advise you on the different packages that meet your needs and budget.

The writer is Director of General Insurance, Nexus LLC. Opinion expressed here is the writer's own and do not reflect that of his organisation's or that of Gulf News. If you have any question, please email it advice@gulfnews.com.