The Insurance Industry in Dubai and the Major Plans Offered by Insurance Companies

Dubai, formerly a desert, has grown into a metropolitan city over the past few years. The city has undergone great many developments and new infrastructure and buildings have been constructed which have given Dubai a completely new shape and the people in Dubai a marvelous lifestyle. Furthermore, the job opportunities available in Dubai and the luxurious lifestyle have attracted the people from all over the world to travel to and live in the city of Dubai. Businesses from all over the world are also making their way into Dubai and have started operating from the city due to favorable conditions and laws that will help in boosting their business. Due to these developments, the need for insurance has increased in Dubai and the insurance industry has become one of the most developed industries in the whole region.

However in spite of developing so much, the lifestyle in Dubai is still that of Islamic nature and Islamic teachings are followed in all the aspects of life there. Therefore the field of insurance is also influenced by the Islamic teachings and is followed according to the ways described in Islam. This is the same for all the UAE insurance policies. However although Islamic teachings hold the primary priority when dealing with anything but Dubai also wants to emerge in the global world as a fully developed state and therefore this sector has also gained a boost as a result of the immigrants and business moving into Dubai. This becomes apparent through the injunction of mandatory health insurance requirement for all of the residents of Dubai in the law from 1 January, 2009.

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The injunction has affected the overall insurance industry of Dubai. This injunction along with the rapid industrial growth has proved to be a fortune for the insurance companies operating in the region. According to the latest statistics, the insurance industry is growing at a rate of around 20%. This is due to the fact that Health Insurance Dubai has become mandatory for all of the residents which require the businesses and companies to get their workforce insured as far as the health is concerned. Along with this policy, another policy has been introduced which has made it mandatory for all cars to have a compressive auto policy.

The insurance companies operating in Dubai have formulated several insurance policies to fulfill the differing needs of individuals. However, basically there are only three insurance coverage plans that are offered by the companies. These are government sponsored plan, controlled care plan and guaranteed protection plan. The government sponsored plan is the plan in which the medical expenses of the retired government officers, teachers, workers and other poor people is offered by the government. Controlled care plan gives the complete health care expense cover in return for a fixed amount of premium. Whereas guarantees protection plan allows the insured party to select the hospital of his/her choice in return for a fixed amount of premium. Other sorts of insurance are also being heavily subscribed by the individuals. Among these, Life insurance and Medical Insurance are the prominent ones.

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