Majority of UAE residents don’t have insurance coverage

National Bonds said most of the UAE residents don’t have an insurance coverage, with only a small minority covered for illness and disablity.

  
Businessmen speak to each other during the Cityscape real estate exhibition in Dubai. Image used for illustrative purpose.

Businessmen speak to each other during the Cityscape real estate exhibition in Dubai. Image used for illustrative purpose.

REUTERS/Ahmed Jadallah

Monday, Sep 26, 2016

Dubai

National Bonds said on Monday most of the UAE residents don’t have an insurance coverage, with only a small minority covered for illness and disablity.

About 73 per cent of UAE national respondents who participated in the survey pointed out that they do not have takaful life coverage, compared to 27 per cent who are covered by traditional policies, a survey conducted by National Bonds revealed.

The results among expat residents of the UAE indicate that 83 per cent of all nationalities have no takaful life coverage, while 17 per cent have traditional life insurance cover, it added.

“We are not surprised with the third quarter results of the National Bonds Financial Health Check - it reiterates our understanding that the awareness about the benefits of takaful coverage is still minimal among the UAE residents. This explains the slow growth of the takaful sector in general,” Mohammad Bitar, Chief Commercial Officer of National Bonds, said in a statement.

Significance

“The majority of the social strata, regardless of nationality, is unable to grasp the significance of insurance and its impact on an individual’s and family’s stability and security. They also don’t effectively understand the difference between traditional insurance and takaful, let alone comprehend the actual benefits of takaful, which focuses on social cohesion and involves the collective sharing of any burdens,” Bitar said.

National Bonds is currently settling the first claim for coverage against loss of employment by one of its regular savers via the strategic local Takaful partner. The total amount of Dh60,000 will be paid out in monthly instalments of Dh10,000 over a six-month period.

The results also indicate that 67 per cent of UAE nationals and 72 per cent of expat residents plan to pay off their liabilities and become debt free by end of this year, as opposed to 33 per cent UAE nationals and 28 per cent expatriates who do not plan to free themselves from the debt cycle.

Staff Report

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