EmployEE Health Insurance SPECIAL REPORT | JUNE 12, 2014
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Get insured
DOn'T juST buy Any hEALTh InSuRAnCE POLICy, EnSuRE An ADEquATE COvER
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Get covered Consider getting yourself a comprehensive insurance plan beyond that provided by employers
Suneeti Ahuja-Kohli
I
t was not long ago when newspapers in Dubai started calling out to readers for monetary support for an expatriate struggling to keep up with the rising cost of hospitalisation for his prematurely delivered son. working as a storekeeper in Dubai, he earned a few thousand dirhams and did not have health insurance or a contingency fund to take care of any medical exigencies. a prematurely delivered son required treatment in an Intensive Care Unit, and he clearly lacked the means. Consequently, the hospital bill amounted to about Dh200,000 in just a few days. the good part is that lady luck was by his side. Readers poured in to help in a matter of few days. the baby was treated and discharged from the hospital after paying the dues. But that’s not how life pans out every time one faces such unforeseen medical expenses. the rising cost of medical care doesn’t help either. As per industry experts, medical inflation in the UaE has been rising by 15 to 20 per cent for the last three years. the new law by the Dubai government mandating a health cover policy for all is therefore a progressive step to ensure well-being for all employed. Initiated by the Dubai Health authority, the legislation was signed into law by His
Highness shaikh Mohammed bin Rashid al Maktoum, Vice-President and Prime Minister of the UaE and Ruler of Dubai, in November. Phase one of the scheme requires companies with 1,000 or more employees to provide their workers with health insurance by October. In phase two, companies with 100 to 999 employees will have until the end of July 2015 to comply. Companies with fewer than 100 workers have until the end of June 2016 to provide coverage. according to the law, companies are only
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dubai Head office: P.O. Box 11243, Tel: +971 4 3383535 Fax: +971 4 3383345/46 e-mail: supplements@khaleejtimes.com abu dHabi: P.O. Box 3082, Tel: +971 2 6337666 Fax: +971 2 6351122 e-mail: ktimesad@eim.ae A Publication of Galadari Printing & Publishing LLC
executive editor Patrick Michael Supplements editor Suchitra Steven Samuel Sub-editor Sadiq Shaban Reporters Farhana Chowdhury Suneeti Ahuja-Kohli
required to cover the cost of health insurance for their employees and not the employees’ dependents. the law would push Dubai's insured population to three million by 2016, from its current level of one million people. In addition, health coverage for spouses and children of expatriates in the UaE has also been made mandatory and residence visas for family members will not be reissued without health cover. Here's a lowdown on what health
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Your health insurance specialists Daman is entrusted with providing quality healthcare solutions to 2.5 million members THe National Health Insurance Company – Daman has grown to become one of the country’s leading health insurers over a period of just eight years. As specialists in health insurance, Daman is passionate about what it does, and has dedicated full resources to introduce unique, innovative solutions that support employers in providing the best healthcare benefits to its staff. The insurance firm is entrusted with providing quality healthcare solutions to 2.5 million members, who it serves diligently and with utmost care. Many of these members are employed in a wide range of companies, many of which are the largest and the best in their fields in the UAe — a testament to the quality of service Daman provides. While the best testament to the quality of its services come from its members, industry leaders from across the region as well continuously applauded Daman’s efforts year after year. Daman is frequently awarded the ‘medical insurer of the year’ in different regional industry awards. it has also been named the “Best employee benefit provider”, which shows that the best benefit employers could provide their staff is a health insurance plan from Daman. Over the years, Daman has introduced many initiatives as ‘firsts’ in the region. These initiatives were all designed with the convenience of clients (as employers) and members in mind. The first was the introduction of online services that provide members and clients with tools
The firm has been named the “Best employee benefit provider”, which shows that the best benefit employers could provide their staff is a health insurance plan from Daman. 4
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to manage their policies and submit a number of applications from the comfort of one’s home without the need to visit its offices. These online services remain unmatched in the UAe since their introduction five years ago. Another important initiative is the introduction of its Health Support services which provide members with chronic and special health conditions — such as diabetes, breast cancer and maternity — with a dedicated member of Daman who would help them understand their conditions and support them through the treatment in partnership with their doctor. Daman has recently become one of only seven insurers licensed to insure all employees working in Dubai as part of the mandatory health insurance law. It is offering different health insurance plans that cater to every employee in your organisation. Here is a basic guide of plan categories that match each employee level:
» Continued from previous page insurance is all about: Basic plan A basic health insurance plan covers you against expenses incurred during hospitalisation. It also covers pre- and post-hospitalisation expenses typically up to a month. This cover is invoked only on account of accidents or if contracted an ailment it is not applicable for diseases, which already existed at the time of buying the policy. For the young, basic health insurance is sufficient and easy to get and so essential is its existence that most of the employers have begun offering medical insurance to their employees. You, however, should not use this as an excuse to shy away from getting yourself one personally and at the same time begin to stack away some wealth to prepare for any medical attention. The reason why you shouldn't just hinge on your employer's medical cover is that the policy stays with you for as long as you stay with the employer and terminates the minute you move out. Your next employer might be offering medical cover and you have the option of renewing your previous policy with the new organisation but you run a potential risk: If in the switch between the two companies there has been a gap for more than seven to 15 days, the insurer of the new organisation will treat you as an entrant and hence will issue you a fresh policy. The risk that you take is that any claim on account of a disease will be treated as pre-existing and therefore denied. When the policy is renewed the insurers cannot deny you cover against a disease that might have led you to invoke the claim in the past. Taking cover young also helps you getting bonus on your sum insured till a maximum of 50 per cent. For those above 60, however, the options are limited. Floater plan
These are broad categories with some including a number of tiers that help employers choose a suitable plan for their staff as per their budgets. each tier is distinguished by the benefits it provides and the healthcare providers accessible by members. Daman encourages you to contact them and consult with one of its health insurance specialists, who would be happy to help you find the best health insurance plans for your employees. employers can call Daman on 800-4-32626 or e-mail at enrolment.szr@Damanhealth.ae
This is the second most popular variant of medical insurance. Popular with families, this plan considers the entire family as one unit and issues cover on that unit. Here the advantage that you so get is lesser premiums since the premiums are decided on the basis of the elder most in the family and not on an individual basis. But the disadvantage that weighs more is the fact that the entire family shares the same cover and if one invokes the cover, the cover on the rest gets reduced by that much amount. Check with your employer, chances are, that he would have given you a floater. Leave that be, get yourself insured individually. Insurers typically give you a discount of about five per cent on the premium if the entire
EmployEE HEaltH InsurancE Handbook
List of heaLth insurers in the uae
Abu Dhabi National Insurance Company Abu Dhabi National Takaful Company - Takaful Al Ain Ahlia Insurance Company Al Buhaira National Insurance Company Al Dhafra Insurance Company Al Fujairah National Insurance Company Al Khazna Insurance Company Al Sagr National Insurance Company Al Wathba National Insurance Company Al-Ittihad Al-Watani General Insurance Company Alliance insurance Company American Life Insurance Company Arab Orient Insurance Company Arabia Insurance Company Arabian Scandinavian Insurance Company AXA Gulf Daman, National Health Insurance Company Dar Al Takaful pjSC Dubai Insurance Company
family buys health insurance from the same insurer. Critical illness plans These plans have become the flavour amongst life insurers. This cover is either bundled with the main plan or is offered to you as a standalone. Critical illness typically offers you lump sum reimbursement upon diagnosis of typically
Dubai Islamic Insurance & Reinsurance Co (Aman) Emirates Insurance Company Green Crescent Insurance Company Iran Insurance Islamic Arab Insurance Company (Salama) Lebanese Insurance Company MetLife National Life & General Insurance Company Noor Takaful Family pjSC Oman Insurance Company Qatar Insurance Company Ras Al Khaimah National Insurance Company Royal & Sun Alliance Insurance (Middle East) Ltd Saudi Arabian Insurance Company Takaful Emarat Union Insurance Company pSC United Insurance Company Zurich Insurance
six critical illnesses: Heart Attack, Major Organ Transplant, Cancer, End Stage Renal Failure, Coronary Artery Bypass Graft Surgery and Stroke. Once this lump sum is paid out, the policy ceases. But the downside of it is that once the claim is invoked, the policy ceases to exist, so in the subsequent years the policyholder is left uninsured. Moreover, the policyholder needs to survive for a month from the date of diagnosis to claim the sum. An early
death and the entire claim can be refused. The hospitalisation cost however has to be borne by the policyholder till the time he gets the insurance money. If you want to buy critical illness policy to bump up your sum insured, go for a separate health insurance policy along with critical illness policy. Clubbing them would lead to loss of both if you invoked the cover. — suneeti@khaleejtimes.com
Al-Ittihad Al-Watani General Insurance Company For The Near East LIFE
HEALTH
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MARINE & HULL
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P. O . B o x 3 0 0 0 D u b a i , U . A . E . , T e l . : 2 8 2 3 2 6 6 , F a x : 2 8 2 3 4 9 0 , w w w . u n i c . a e
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Secure your tomorrow Saudi Arabian Insurance Company offers a range of insurance products to suit your needs
Saudi arabian insurance Company b.S.C (C) (SaiCO) is a closed joint stock company incorporated in bahrain to transact all classes of insurance. SaiCO (www.saicoins.com/gulf) has a network of established branches in bahrain, Oman, Kuwait, dubai and abu dhabi. in Saudi arabia, SaiCO (www.saico.com. sa) is a founding shareholder in Saudi arabian Cooperative insurance Company, one of the leading publicly listed insurance companies. in Lebanon, SaiCO’s sister company Saudi arabian insurance Company S.a.L (www. saicoins.com/lb) is one of the main market players. With its network of offices, its affiliated and associated companies in the Middle East, SaiCO is able to insure and service clients in several territories within the Middle East. SaiCO provides healthcare as well as other lines of insurance and has an excellent reputation among clients and peers. SaiCO is one of the Middle East’s well-established distributors of insurance products and services with long successful history in the region. SaiCO has collaborated with Cigna, a global health insurance company to deliver superior and quality benefit plans for employees and their families. The following SaiCOHEaLTH products are reinsured and internationally serviced by CiGna: • Premier Plan – The primary medical product, covering in full in- and outpatient benefits, including acute and chronic conditions, primary care, m a t e r n i t y c o v e r, c o n g e n i t a l abnormalities and emergency services. • Premier Plus Plan – Same as above,
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but additionally includes wellness benefits (physical examinations, screening, mammograms, pap smears, etc.) • Middle East Level 2 Plan – Same as premier plan, without routine or complicated maternity, and co-pay for outpatient consultations. • Middle East Level 3 Plan – Same as Middle East Level 2 above, and offers enhanced maternity limits. • Middle East Level 4 Regional Plan – Same as Premier Plan, with a lower annual maximum cover, out of network coinsurance, optional routine maternity, and a coinsurance on all outpatient treatment. • Dental Plan – an optional plan that covers investigative, restorative and orthodontic dental treatment. • Vision Plan – Provides cover for an examination and also covers additional
SAICO provides healthcare as well as other lines of insurance and has an excellent reputation among clients and peers. SAICO is one of the Middle East’s well-established distributors of insurance products and services with long successful history in the region.
expenses that may be incurred for frames and lenses. • International EAP (IEAP) – Offers three levels of counselling from telephonic to face-to-face, in order to meet the needs of your expatriate employees and families.
EmployEE HEaltH InsurancE Handbook
MOVING IN THE RIGHT DIRECTION Iran Insurance aims to offer quality healthcare coverage for all The UAe is becoming a healthcare hub for the Middle east. Over the past few years many healthcare providers have improved their service quality by bringing in modern equipment, upgrading facilities, increasing the number of available doctors and diversity of specialties offered. At the same time, we have witnessed several new highend providers coming to the emirates, raising the bar even further. however, this quality improvement has had a side effect for residents too — increase in the cost of medical services. Samira Farouqi, head of Medical and Travel Insurance at Iran Insurance, said, “At the moment, treatment of some conditions is so expensive that bearing their cost is not easy even for some employers.” That is not the whole problem though. She added, “Unfortunately, patients are usually unprepared financially, when they find their health issue coming
At the moment, treatment of some conditions is so expensive that bearing their cost is not easy even for some employers. Samira Farouqi
out of the blue.” Just like any other risk, insurance is an effective tool to manage such events. As the costs are rising, it is no surprise that arranging medical insurance for staff has become a trend over recent years.
Under these circumstances and to protect all residents, DhA’s initiative for mandatory medical insurance is very helpful. “We hope to see no patient postponing treatment due to lack of money in the near future,” concluded Samira.
EmployEE HEaltH InsurancE Handbook
Does your employer package measure up? Always review the benefits to ensure a secure future for you and your family
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any people have gone through their annual benefits enrolment period at their work. Precious time was spent reviewing the available offerings with spouses and determining which ones best meet their families' needs, weighed against the cost. Yet a good number may not have taken the time to review their company's benefit plans and may not be aware that what's available and what they selected could fall short of meeting their needs. Does your benefit package really measure up? Forty per cent of employees don't understand their benefits, according to a 2011 ADP Research Institute study, which means many may be underutilising
available resources for retirement planning, health care and insurance. Sometimes the benefits offered are a good start towards financial protection, but employees don't realise that these benefits are intended to be just that — a start — and additional coverage may be needed to help fill in the gaps. "When a household income earner is in good health and able to bring home the paycheque every week, families often forget about those other benefits available from the company," says Melissa Millan, Senior Vice-President, Massachusetts Mutual Life Insurance Company. "Everyone should carefully review their benefits, and determine if any additional insurance protection might be needed to keep the family finances on an even keel if something should happen to affect that weekly paycheque." Two benefit areas that are often misunderstood or left untouched are life insurance and disability insurance. If you have these benefits offered to you by your employer, consider how they can help you out financially.
WE CAN HELP YOU TURN YOUR EMPLOYMENT PACKAGE INTO A REAL INCENTIVE
Life insurance: Many employers will offer group term life insurance as part of their benefit package, with the option for employees to purchase additional coverage on their own by having the additional premium payments deducted from their paycheque. One reason employees might want to consider purchasing additional coverage through their employer is because they may not need to provide any health information or be pre-approved medically like they would be if they were to purchase it outside the workplace. Employees should be aware: They might not want to rely solely on group term life insurance. Because it's offered as a benefit via their employer, the employer could decide to discontinue offering the benefit. If the employee leaves the company for any reason, coverage could be lost, if there are no options to take the coverage with you. Instead, consider balancing the benefit offered through your employer with an individual life insurance policy. With individual life insurance, you are the owner of the policy, can purchase
OUR INTERNATIONAL CORPORATE SAVINGS AND PROTECTION PRODUCTS CAN HELP MAKE YOUR OFFER MORE ATTRACTIVE. With fewer skilled staff to go around, recruiting high quality people is fast becoming a challenge that companies of every kind need to urgently address. And it is not simply about persuading new people to join you. You also need to reward and manage your staff effectively if you want to retain those you value most. Introducing a flexible, comprehensive benefits strategy is one way to meet the expectations of both prospective and current employees. We can offer you a range of solutions that offer the extra retirement benefits and protection package people are looking for to safeguard their assets, their families and their futures. And because we are a global company, we can even tailor our packages to suit the needs of international operations with a mobile workforce and offices in different locations worldwide. FOR MORE INFORMATION CONTACT PETER COX, TEL: +971 (4) 425 2427, PETER.COX@ZURICH.COM
ZURICH INSURANCE. FOR THOSE WHO TRULY LOVE THEIR BUSINESS.
Zurich International Life is the business name of Zurich International Life Limited and Zurich Life Insurance Company Ltd. Zurich Life Insurance Company Ltd and Zurich International Life Limited are registered (Registration Nos. 62 and 63) under UAE Federal Law Number 6 of 2007, and its activities in the UAE are governed by such law.
EmployEE HEaltH InsurancE Handbook
the amount of coverage you truly need and bring it with you if you leave the company. If you purchase additional insurance, either at work or outside of work, it's always important to understand your ability to keep the coverage, regardless of your employment relationship. Disability insurance: Employers often will provide group long-term disability plans that replace a portion of the employees' incomes, if they suffer an illness or injury that prevents them from working for an extended period of time. However, the gap between the amount of salary replaced by the group insurance and the employee's pre-disability income may be larger than many people realise. Typically, many group plans replace only a portion of employees' total salaries — 50 to 60 per cent, on average. Additionally, many group disability plans don't cover commissions or income from bonuses, a critical component of many individuals' incomes. An extended period of disability could cause financial consequences for an individual or family. To help reduce the income gap, having an individual disability income insurance policy can help you continue to pay your bills and avoid tapping into your savings. — BPT
Shariah-compliant services A local insurance company, Dar Al Takaful PJSC is innovative, professional and principled
As an Islamic insurance company in the UAE, Dar Al Takaful PJSC’s business operations are Shariah-compliant and this aspect is overseen by a distinguished Fatwa and Shariah Supervisory Board.
DAr Al TAkAful PJSC was established in 2008 with a paid up capital of Dh100 million as an Islamic Insurance Company based in Dubai providing Shariah-compliant solutions for their clients’ insurance needs. Dar Al Takaful PJSC is a local insurance company that is innovative, professional and principled. Corporate decision-making is in close proximity to the needs and wants of its clients. Dar Al Takaful’s clients’ insurance needs and expectations are backed up by a strong group of investors who provide the support and solid financial foundation that allows them to feel safe and secure – no matter what line of business. As an Islamic insurance company in the uAE, Dar Al Takaful PJSC’s business operations are Shariah-compliant and this aspect is overseen by a distinguished fatwa and Shariah Supervisory Board.
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Bundled with benefits Takaful Emarat offers personalised plans alongside local, regional and global coverage TAkAful EmArAT, the uAE-headquartered Shariah-compliant life and Health Insurance Company is chosen as one of the seven companies who will be offering the compulsory health insurance for companies in Dubai. furthermore, we are the only takaful company permitted to provide this coverage in Dubai. One new landmark of Takaful Emarat for providing quality life and health insurance. Wael Al Sharif, Chief Executive Officer at Takaful Emarat, said, “With this new development from DHA, Dubai is widening our reach to include those who are less fortunate and who are in utmost need of a plan that safeguards their healthcare needs. We are committed to serving the needs of different sectors of the market. As a genuine takaful operator we specialise in life and health insurance, offer deeper understanding and better services when compared to other providers, who offer takaful-based products as one arm of a wider business. Our product offerings are always centred on the market needs. “Based on our in-depth market research, we have designed a plan that covers risks of injury, illness and protects the employees from certain unforeseen circumstances. As a takaful operator, we felt that employees' needs must be addressed in
a way where they can not only get quick healthcare service and low upfront cost, but also an easy access to medical facilities in their vicinity.” Takaful Emarat’s Health Plan is a group comprehensive health insurance Takaful Plan bundled with life and disability benefits, which provides access to quality health insurance at an affordable cost. It offers wide range of tailor-made benefits to meet the health requirements of employees. The plan also offers local, regional/global coverage and varying levels of medical network provider/s like hospitals, pharmacies and laboratories for quick access with flexible annual limits that
Takaful Emarat, in its capacity as a specialised life and health takaful company, will continue to create products and solutions that cater to all types of consumers, regardless of their income brackets with the mission of not only meeting their needs, but exceeding them.
can be customised as per employer’s requirements with hassle-free, instant coverage and very less documentation. It comes in distinct pre-packaged plans to meet employees benefit needs and budgets, and it offers plans for the Northern Emirates, and for Abu Dhabi that is duly approved by Health Authority of Abu Dhabi (HAAD). The new plan offers a streamlined, easy and efficient process for companies who wish to enrol their employees and to members of employee’s family under one master contract. Takaful Emarat, in its capacity as a specialised life and health takaful company, will continue to create products and solutions that cater to all types of consumers, regardless of their income brackets with the mission of not only meeting their needs, but exceeding them.
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EmployEE HEaltH InsurancE Handbook
Extending care for everyone DHA selects AXA Gulf as Participating Insurer to offer health insurance coverage under the Essential Benefit Plan Dubai Health authority (DHa) has chosen aXa Gulf, one of the largest non-life international insurers in the Middle East, as a Participating insurer to offer health insurance coverage under the Essential Benefit Plan. aXa Gulf’s nomination as a Participating insurer is a major step forward in its journey as the preferred insurance provider in the country. With the new health insurance permit, aXa Gulf is reinforcing its market leadership and is set for a significant growth in members as well as services across the UAE. Currently, AXA Gulf is servicing more than 425,000 members across five countries. Jérôme Droesch, CEO of AXA Gulf, said: “We are extremely honoured to be nominated as a Participating insurer and being given the permit to offer the comprehensive Essential benefit Plan
Jérôme Droesch
Ghulam Mohammed Teli
mandatory as per the new Health insurance Law. This once again reinforces our growing market reputation and leadership in the insurance sector. We are geared to handle the additional members and services required of us in line with the new legislation. In fact, we have already mobilised our resources for the same. I am sure the efforts we have made on the quality of service, our global expertise and our innovative solutions have supported our submission.” He added, “aXa Gulf has serviced more
than 425,000 members in 2013 across five countries. The number of members has increased significantly between 2011 and 2013 both in the UAE and in Dubai at more than 115 per cent and 124 per cent, respectively. This demonstrates AXA Gulf’s capability to absorb significant growth in terms of additional members and related services with ease. “Since inception, we have always tailored our products and services in line with the requirements of our customers. With the new Participating Insurer permit, we have gone one step ahead in our journey to be the one-stop service provider in health insurance for anyone — be it any company or an individual looking for the best, most accessible and the effective health insurance cover for self or family members. AXA Gulf’s platform has the capacity to immediately absorb a significant increase in the number of members with the Essential Health Benefit Plan while maintaining the same quality of service. So we are well equipped for the future growth trajectory,” said Ghulam Mohammed Teli, Chief Officer Health and Life, AXA Gulf.
EmployEE HEaltH InsurancE Handbook
Protecting your paycheque Give yourself some protection with insurance
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eoPle insure their homes, their cars and even their vacations without giving it a second thought. But many do not think about insuring their most important asset — their income — from a disability caused by illness or injury. And it's not just income during working years that is at risk. A disability can also put a serious dent in your ability to enjoy retirement. That can happen in two ways: When a family loses its usual source of income due to a disability, sometimes the only alternative is to dip into retirement savings to cover normal household expenses. And even if you don't have to take money out of savings to replace income, the other consequence of a disability is that it decreases your potential to contribute to
your retirement plan. From the moment you start working until the day you retire, your ability to earn an income is your most important financial asset. Consider this example: A Dh240,000 annual salary results in Dh9.6 million earned over a 40-year career, and that doesn't take into account inflation, salary increases, or the long-term growth potential of money invested in retirement saving vehicles along the way. If a disability prevents the individual from earning this income, or requires him to access a portion of what's already been saved, it can have devastating impact on retirement dreams. Recent research demonstrates the need to prepare for the unexpected. The Great Recession has reminded us that we cannot afford to lose our incomes. But we also need to remember that our chances of losing our incomes are determined by more than just our employers' viability or our career success. In the minds of consumers, few things seem more unexpected than a disability.
one way to prepare for the possibility of being unable to work is disability income (DI) insurance, designed to help pay living expenses, maintain lifestyle needs and preserves assets accumulated for retirement and other purposes. Many employees think that coverage they get through their employer's group disability policy is enough. They should think again. Group DI typically has a cap at 60 per cent of salary; other forms of compensation like bonuses or commissions may not be covered. In addition, the benefits are taxable. So, if earning less than two-thirds of one's current salary would make it difficult to make ends meet as well as work toward goals like continuing to fund retirement, it's important that another option be considered to bridge the gap. That option is an individual DI insurance policy.