Guide to Insurance in UAE| North Loop Official Blog
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16 Sep 2020

Guide to Insurance in UAE

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For any Indian, moving to the UAE can be an extremely promising endeavor, either from the perspective of education or from the perspective of a job. Being one of the biggest global financial hubs, the UAE sees a frequent influx of Indians moving abroad for a more prospective life. But the decision taken to move abroad can often put one in a tight financial predicament, making it absolutely necessary for one to consider buying an insurance policy.

What is Insurance?

Insurance is a formal contractual agreement between an individual known as the insured and an insurance company known as the insurer. The insured individual is required to pay an amount regularly known as a premium to the insurer, who in turn promises to cover any potential financial losses borne by the insured individual arising in the future.
The insurance company pools risks as well as money in the form of premium from a collective set of insured individuals in exchange for coverage of infrequent unforeseeable risks.

In recent times, insurance policies are not only purchased for the coverage of contingent financial losses, but are also purchased with a savings element attached to it.The various types of insurance policies are outlined below-

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Types of Insurance Policies-

Insurance policies cater to a wide spectrum of demographics and requirements, ranging from policies meeting the needs of families, senior citizens as well as corporates.

The various types of insurance policies are-

  • Life Insurance

  • Health Insurance

  • Property Insurance

  • Travel Insurance

  • Motor Insurance

Life Insurance: This is a type of insurance policy that provides financial security to the family of the insured individual in the unfortunate event of death of the same.
Life Insurance can be divided into-

  • Term Plans which provide death benefit only within a specified period.

  • Unit Linked Insurance Plans (ULIPs) out of which a small portion offers a death benefit and the other is invested into mutual funds depending on the risk appetite of the insured individual.

  • Whole Life Insurance Policies that provide coverage for life, etc.

Health Insurance: This is a type of general insurance policy that provides coverage for the medical treatment of insured individuals, incurred at the time of hospitalization. Health insurance policies are divided into-

  • Individual/Family Floater health insurance

  • Critical Illness Cover: Provides coverage of specified critical illnesses.

  • Personal Accident Insurance: Provides coverage for death, disability, or injuries sustained by the insured individual.

Property Insurance: This is a type of insurance policy that provides coverage for an insured property in the event of damage or theft to the property. Property Insurance policies are divided into-

  • Home Insurance- Safeguards a house from various contingent losses.
  • Office Insurance- Safeguards an office from various contingent losses.
  • Personal/Commercial building insurance- Safeguards a personal/commercial building from various contingent losses.
  • Shop/Factory/Warehouse insurance- Safeguards a shop/factory/warehouse from various contingent losses.

Travel Insurance: This is a type of policy that covers contingent losses pertaining to traveling, securing a traveler during a trip. The coverage provided pertains to domestic as well as international trips. Travel Insurance policies can be divided into-

  • Domestic Travel Insurance- This policy provides coverage for contingent losses that may arise during domestic travel.
  • International Travel Insurance- This policy provides coverage for contingent losses that may arise during international travel.

Motor Insurance: It is a type of insurance policy that pertains to vehicles such as cars, trucks, motorcycles, etc. The policy covers contingent losses that may arise due to damage or theft of the vehicles.

Why is insurance essential?

With the costs of living and essential expenses growing on an exponential basis, the smartest thing for one would be to purchase an insurance policy as emergency expenses take a massive toll on anyone’s finances.

Advancing technology in the medical/healthcare space bundled with the increasing quality of medical expertise dependent services contribute significantly to the increasing medical expenses. This proves to be a costly affair for many. Health insurance policies have been reduced to an absolute essential for some, especially for Non-Resident Indians balancing on a financial tightrope.

Similarly, travel insurance policies are vitally important for NRIstraveling to the UAE as these policies provide coverage for various aspects such as flight ticket delays/cancellations, loss of baggage, medical emergencies, etc.

The insurance companies in Dubai provide a similar insurance market as that of India and the travel insurance policies provide comprehensive coverage for students traveling for the purpose of education, parents traveling to visit their children as well as tourists.

Insurance acts as a cushion of safety for individuals and helps them mitigate their risks by transferring the same to an insurance company instead. Small monthly/regular payments for any insurance plan helps one to be stress-free. One can always be well prepared in advance for the worst and will not have to worry about the huge financial loss taking place at the time of the mishap. Family floater insurance policies make it all the more easier for families to lead a tension-free life without having to worry about the worst.

Insurance Scenario In India

There are a plethora of Insurance companies in India offering a wide range of insurance policies for Indians as well as NRIs, such as Life Insurance, Car Insurance, Health Insurance, etc.
Several companies are operating in the private insurance sectors as well as the public insurance sectors, with a well-established network of branches spanning the length and breadth of the country.
Insurance companies in India as well over the world keep updating their policies to meet the constantly changing requirements of people and the best example of this would be the introduction of Health Insurance policies pertaining to the coverage and treatment of the coronavirus (COVID-19).

Health Insurance in India-

Insurance companies like ICICI Lombard, HDFC ERGO, Max Bupa (partnered with South Indian Bank), and Religare Insurance company offer some of the best health insurance in India for Indians as well as for NRIs. Some health insurance policies even cover pre-existing illnesses as well as critical illnesses.

Usually, policies are offered for individuals between the age bracket of 21 years to 65 years, and insured individuals receive coverage of up to Rs. 1 crore, proving to be some of the best medical insurance India has to offer.

Life Insurance of India-

Public sector insurance companies like Life Insurance Corporation of India, New India Insurance, National Insurance India, United India Insurance, etc offer a wide range of inclusive policies pertaining to life insurance of India as well as policies pertaining to Term insurance in India, with high coverage offered within the duration of the policy.

In the case of NRIs, Life Insurance Corporation, ICICI Prudential Life Insurance Company, Max Life Insurance Company as well as Kotak Life Insurance company offer a wide array of inclusive life insurance plans as well as term insurance plans in India.

Best Insurance Companies in UAE

A lot of people visit the UAE from India as it is one of the biggest financial hubs across the world. We usually see a lot of tourists, working professionals, and students visit the UAE either for vacation or to step foot into a whole new venture in their lives. For these individuals, especially NRIs, insurance policies are extremely essential to provide a safety net against losses.
Insurance companies in Dubai or UAE as a whole have a similar insurance market as that of India, offering similar insurance plans and policies.

Some of the best insurance companies in the UAE are as follows-

  • Oriental Insurance

  • Daman Insurance

  • Oman Insurance Company

  • Axa Insurance Dubai

  • Union Insurance

  • NAS Insurance

  • RSA Insurance

  • RAK insurance

  • Abu Dhabi National Insurance Company(ADNIC) Insurance

  • Nextcare Insurance

  • Afia Brokerage Services LLC
  • Orient Insurance Dubai (UAE) PJSC

Oriental Insurance-
The Oriental Insurance Company Dubai was established in 1960, operating with over 31 regional offices. The company has assets over AED 16,000 million with a net profit of over AED 800 million. Oriental Insurance company offers policies for individuals, such as motor insurance, home insurance, and personal accident insurance, as well as corporates such as marine insurance, property insurance, health insurance, motor corporate insurance, etc. The company offers policies at some of the lowest premiums across the region.

Daman Insurance-
Daman Insurance company is one of the leading health insurance companies across the UAE, having a customer base of over 2.6 million users. The company has a very strong network of over 3000 medical facilities, making it very accessible for people.
The company offers health insurance for individuals, families, domestic help, as well as small and large group businesses. The company also offers a subsidized insurance policy scheme for low-income households, making Daman Insurance Company one of the more affordable health insurance providers in UAE. Daman insurance company provides some of the best health insurance policies Dubai has to offer.

Oman Insurance Company-
Oman Insurance Company is a UAE based public sector insurance company, offering comprehensive plans for individuals as well as corporates.
For individuals, the plans offered are motor insurance, health and medical insurance, travel insurance, life insurance, and home insurance whereas, in the case of corporates, the policies offered are health insurance, life insurance, motor insurance, travel insurance, commercial insurance, and trade credit insurance. Oman Insurance company is one of the oldest and most reliable insurance companies in the UAE.

AXA Insurance Dubai-
AXA insurance is one of the biggest insurance companies in the UAE, with over 25 branches and retail shops across the Gulf, catering to over 1 million customers. AXA insurance offers various policies such as car insurance, travel insurance, home insurance, health insurance as well as Life Insurance. This insurance also provides fair and fast claims bundled with a wide range of covers. Insurance policies cater to domestic as well as international requirements. AXA insurance policies may not be as cheap as it’s competitors, but its wide range of inclusive insurance policies sure do make up for it.

Union Insurance-
Union Insurance is a UAE based insurance company with its headquarters in Dubai. The company offers various retail and commercial insurance products, catering to different demographics of users. The company offers motor insurance, health insurance, life insurance, travel insurance, home insurance, and yacht insurance for individuals and businesses, the company offers group life insurance, group health insurance, property insurance, marine insurance, engineering insurance, and liability insurance.
The company offers exceptional value for money and innovative products, with excellent customer relations and customer support services.

RSA Insurance Company-
RSA insurance company is one of the oldest insurance companies in the UAE, serving over 9 million clients since inception. RSA Insurance company offers various insurance policies such as motor insurance, travel insurance, home insurance, personal accident insurance, and even Golf insurance. The company has extremely good reviews for it’s best in class range of policies pertaining to car insurance Dubai has to offer. RSA Insurance is ranked one of the best Dubai insurance companies.

Ras Al Khaimah National Insurance Company (RAK Insurance)-
Ras Al Khaimah National Insurance Company (RAK Insurance) was established in 1974 and is one of the most renowned insurance service providers in UAE. RAK Insurance company offers a wide range of insurance policies such as motor insurance, home insurance, travel insurance, life insurance, and essential medical insurance for individuals as well as engineering insurance, group health insurance, marine insurance, essential medical insurance, fleet insurance, property insurance and cyber insurance for businesses. The insurance policies offered by the company can be accessed through their mobile app as well as their online portal.
Being one of the most renowned companies in UAE, the company is also very reliable and the customer service offered too is of top-notch quality.

Abu Dhabi National Insurance Company(ADNIC) Insurance
Abu Dhabi National Insurance Company is one of the largest insurance companies based out of Abu Dhabi. It is a public sector insurance company with a wide network of branches all over the country.
ADNIC offers various insurance-related services, such as motor insurance, medical insurance, home insurance, travel insurance, smart life insurance, personal accident insurance, personal watercraft insurance as wedding insurance for individuals. For corporates, a wide array of insurance policies are offered such as aviation insurance, construction and engineering insurance, energy insurance, financial lines, group medical insurance, group life insurance, corporate liability insurance, corporate liability insurance, marine insurance, motor fleet insurance, property insurance as well as corporate travel insurance. ADNIC insurance company offers insurance policies for almost anyone and everyone, making this company extremely inclusive for all.

Nextcare Insurance-
Nextcare insurance company is one of the more recent insurance companies in the middle east, offering top-notch customer service and maximum cost optimization for their policies. The company has access to more than 13,000 providers regionally and has settled over 1 Billion claims under its management. Nextcare offers a comprehensive list of medical and health insurance-related services for individuals as well as on a family floater basis. Nextcare insurance company provides some of the best health insurance policies Dubai has to offer.

Afia Brokerage Services LLC-
AFIA Insurance Company is again one of the newer insurance companies, having a well-respected household brand in the UAE. The company has over AED 10 billion worth of policies issued every year with over 40,000 customers insured annually. The company issues insurance policies for individuals such as car insurance, travel insurance, home insurance, life insurance, medical insurance, bike insurance, as well as yacht insurance. For businesses, the company offers insurance policies for various assets, liabilities, employees as well as specialist practices. AFIA insurance is another company that ranks high in the Dubai insurance market.
Orient Insurance Dubai (UAE) PJSC-
Orient Insurance PJSC is one of the biggest household brands pertaining to insurance in the UAE, with over AED 500 million worth of paid-up capital. The company has a comprehensive product range of personal insurance policies as well as commercial insurance policies. The personal range of insurance policies covered are motor insurance, travel insurance, home insurance, medical insurance (individual and group), life insurance(individual and group), third party liability insurance, and a whole lot more.
In the commercial insurance space, the policies offered are property insurance, engineering insurance, general accident insurance, marine cargo insurance, liability insurance, energy insurance, aviation insurance as well as credit insurance. Having a very good reputation, one can easily rely on the company to purchase insurance for themselves.

Insurance is an utmost essential for anyone traveling abroad due to the financial security it offers. For any Indian or NRI, taking a decision to purchase the most suitable insurance policy can often be a hassle and would require a meticulous amount of planning before arriving at the consensus. Going through the wide range of policies offered by various companies and deciding the best fit would require a lot of brainstorming.

On the other hand, North Provides comprehensive insurance policies for Indians as well as NRIs, such as life insurance and health insurance in India as well as the UAE. Policies offered come with low premiums and high covers, with a sign-up procedure completely online and hassle-free. Sign up today and secure yourself from financial risks!

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This publication is provided for general information purposes only and is not intended to cover every aspect of the topics with which it deals. It is not intended be advice. You must obtain professional advice before taking, or refraining from, any action on the basis of the content in this publication. The information in this publication does not constitute legal, tax, investment or other professional advice from North Loop or its affiliates. We make no representations, warranties or guarantees, whether express or implied, that the content in the publication is accurate, complete or up to date. All opinions expressed do not reflect the views of North Loop nor are endorsed by North Loop.