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A Guide to Insurance for Expats in the UAE

By PolicyBazaar
  | Published: 30 January 2020 | Last Updated On: 08 February 2021

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As an expat residing in UAE, living miles away from your home country, it is essential for you to be prepared in case of any unpleasant event. Whether we talk about critical illness, commercial risks or an inability to work, it is vital for you to be protected by an insurance company that is reliable and reputable.

Always remember, you should not wait for problems to arise before checking your insurance agreements. Because once the problem arises, it is too late. There is a risk involved if you are underinsured and a lot of expenses involved if you are overinsured. Generally, insurance is taken up to reduce risks.

There is a wide array of insurance vehicles available in the UAE. Be it, life insurance plans, home insurance plans, motor insurance or even business insurance – there are numerous options available in the market. One should always make sure to compare across the various providers and products before opting for any particular policy. It is also advisable to check the reputation and financial strength of the provider you are choosing.

Insurance is not such an issue that is country-specific, however, the amount of coverage that you require may vary from country to country.

Life Insurance Plans

Life insurance plans can be very helpful if you are the breadwinner of the family. It acts as a financial shield by guaranteeing a lump sum payment to your dependents in case of an unfortunate event of your demise. If you are someone with a business heavily depending on them, for instance, a highly-skilled employee or a manager, life insurance plans can be particularly helpful to reduce the risk of losing such a person.

It is important to thoroughly assess the burden involved in retaining foreign life insurance plans while residing in UAE. Additionally, you should check the geographical extent of your any of the life insurance plans you may be holding currently in order to assess coverage when you move.

Health Insurance

Often, health insurance is mandatory by the immigration authorities. Expats may take an international cover from a provider in their hometown. However, it is always easier to use a UAE policy if you are residing in the UAE. International covers come out to be more expensive. But they are straightforward. If you are an expat who tends to travel across borders every now and then, it is good to hold international insurance as it provides you with an ease of mind. Healthcare is costly in the UAE which is why health insurance plans hold importance there.

Motor Insurance

Vehicle insurance is mandatory by law in UAE in order to ride any of your vehicles on the roads. Your vehicle must hold at least a third-party liability cover. Such a policy covers you against any potential liabilities towards the third-party damage (car or injury) but does not protect your vehicle. The good part of such a policy is that it is cost-effective. If you wish to protect your vehicle against more than just third party damage, you can opt for a comprehensive cover.

Business Insurance

If you are someone who runs a business located in the UAE, then you are likely to require public liability insurance and personnel insurance. Public liability cover protects you against some particular third party claims against your business and may include legal costs. Whereas, personnel insurance covers you in case any of the employees face an accident or illness related to his/her employment duties, provided that you are liable under the applicable law.

Home Insurance

Your needs for a home insurance plan depend on whether you own or rent a home.  With a building policy, you are protected against damage to your building, and in general, is required to secure a mortgage. Such a policy may cover the cost involved in rebuilding your property or the costs involved in some repairs.

When it comes to choosing between all the insurance policies, the amount of coverage depends on your needs.

The contents insurance is a cheaper alternative, however, it only provides coverage to your belongings up to a specific amount. It is ideal to have insurance for the entire value of your belongings. Otherwise, you will not be reimbursed for the total amount of your losses.

It is also good to check if the home policy you hold provides coverage against third party liabilities.

If you are planning to go away from your home for a month or more, it is good to update your insurance provider so that if something were to happen to your home while you are not around, your claim is not rejected.

The Bottom Line

It is highly important to hold protection, especially if you are residing in a place that is not your hometown. Be it life insurance plans, health insurance plans, or motor insurance plans, a financial shield towards you and your loved ones is necessary as life is unpredictable.