The Shape of Insurance in Dubai

Dubai has grown into a mega city, but the trappings of Islamic society remain. Thus the field of Insurance is also within the ambit of Islam. But at the same time Dubai will like to come on the world map and with an increasing level of expat work force and setting up of businesses, thus this sector has also got a fillip. Thus from 01 Jan 2009 health insurance has become mandatory for all residents of Dubai.

Thus insurance sector is on the upswing and as per latest figures it is growing at the rate of about 20%. A number of types of policies some of which come in the mandatory category are introduced in Dubai. Health auto insurance has become mandatory. Covering the large workforce is compulsory for companies as far as health is concerned. In addition it is mandatory for all cars to have compressive auto policy as well. The other classical forms of insurance like life insurance and its mutants are also heavily subscribed by individuals.

Dubai has opened its doors in this sector to foreign players as well and in due course more and more foreign companies may enter Dubai. Presently the field in Dubai is controlled by some local companies. These local companies cover all aspects of insurance and its mutants. Though health and auto insurance is on the upswing yet life cover is as yet on a lower scale. The important companies operating in Dubai are Bahrain national, AXA, AIG, and Gulf union, medic union, BUPA, HSBC, Allianz and many more. This makes it a pretty crowded affair.

Some facets of insurance in Dubai particularly auto and car insurance is not in consonance with the world and looks out of place. For example drivers below the age of 25 are finding it difficult to get cover. In addition cars more than 5 to 7 years old will be difficult to get comprehensive cover. Again some policies do not insure cars off road thus an in case you use your car in the dunes you may get no compensation.

Another important aspect is that in Dubai you can't drink drive a car and claim insurance in case of an accident. This is a total taboo. You will also have to pay blood money to the tune of 200,000 dhs in case a person dies in a car accident on the road. This does not fit in with practices worldwide. Insurance in Dubai has however great potential and many global players have entered the insurance field, despite the trappings of Islamic law and the Shariat.

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