The things you need to know about health insurance premiums in the UAE


Are you living in the UAE as a foreign worker? Are you susceptible to some health risks? Are you planning to upgrade your health insurance in Dubai? If your answer to these three questions is YES, then this article is for you. This article will discuss health insurance premiums in the UAE from a general perspective. Basically, premium health insurance is not too much different (in principle) from premium insurance in other sectors. 

The insurance premium is about the cost of hiring an insurance policy of any type, this being an amount that the client is obliged to pay to the insurer for the issuance of his policy and the fulfillment of the coverage that it includes.

Actually, we refer to an insurance premium as one of the obligations for both the insurer and the insured, since it is an amount that must be covered in its entirety, but this will have to be according to the schemes that have been established depending on the insurance company with which you have purchased the product, because in these cases normally the premium payments can be determined by a single payment, annual, semi-annual, quarterly, bi-monthly or monthly, this will already be up to the user’s decision.

The amount of the premium will depend on the type of risk insured, as well as the institution that provides the service. On many occasions, this is used as a kind of guarantee deposit, which is returned in situations such as total loss of the insured property.

How are Insurance Premiums calculated?

For the calculations of a car insurance premium, as well as those of medical insurance, Uber insurance, life policies, motorcycle insurance, etc., the same methods will be used, which consist of the duration of the contract, as well as the probabilities that exist for one of the established claims to occur, followed by the cost that this service will have, this is how it can be valued at the amount that according to the data will be enough to cover the expenses that are generated.

Once the amount equivalent to the premium is reached, this calculation in the insurance sector is also known as actuarial calculation, since in this it is possible to consider all the variants or situations that may arise during the duration that will have the policy, and where points will also be established in which it will be given greater or lesser importance according to the risk analysis that is carried out.

Health Insurance Premiums in the UAE

As a country where many expatriates live and work, the existence of health insurance is very important to ensure medical treatment for every foreign worker there. After calculating and obtaining the health insurance cost, some other factors or elements that must necessarily appear in these items are added, which are related to aspects such as:

– Surcharges or sums depending on the security.

– Procedures corresponding to the expenses generated by the administration of the services.

– There are also surcharges known also as benefits and commercial.

– Other items included in the final price of a policy are those corresponding to acquisition expenses, premium commissions, and advertising expenses.

Finally, we find the expenses generated by the redistribution of the risks that are established for the policy according to the sector that will be addressed, as well as those related to the co-insurance of the coverage and reinsurance.

What is the Health Insurance Premium for?

In the agreements that are directly related to the health insurance premiums, we must also take into account the points that are put into practice once the insurance insured formalizes the contract, where there will also have to be additions for taxes, levies, and accessories that are included, with this the penalties for non-payment of the premium are also estimated, where there are occasionally two situations that will necessarily occur, such as:

– When it happens that it is the first premium, it happens that the non-payment is automatically released for the insurer in accordance with the fulfillment of the contract if a claim occurs.

– This situation occurs when a second premium or they are successive, the risk coverage is immediately suspended since the month has elapsed from the expiration date. In an alleged case of non-payment for a period of almost six months, this means that the premium is already eliminated, but if in this period the coverage were to be paid again, it could be reactivated in a period of no more than 24 hours.

How are Health Insurance Premiums in the UAE structured?

Again, the situation in the UAE is not too much different from that of surrounding countries such as Saudi or Qatar. The health insurance systems in these established Gulf countries are very well structured. 

In the UAE, the health insurance premium is the price that the insured will have to cover for the exchange of service that a health insurance company is in charge of providing, which includes the insured risks that are subject to be covered automatically by the insurance company, as long as these are stipulated in the contract made between both parties, or if it was included as additional coverage.

The point is that there is a document that guarantees that the client has complied with the amount of premium corresponding to the protection for these services, as long as this is not the case, the insurer can reject the support to the user, or it will do so through a deductible that the client will be obliged to pay.

We must remember that the deductibles or indemnities go according to the insured risks, which are fixed or variable, in addition, that an auto insurance premium is according to the duration that the contract will have, as well as the limit that has been established directly to compensation for the risk that has been agreed.

Hopefully, this short article can add to your insight about health insurance premiums in the UAE. Thanks for reading!