Skip to main content

The Importance of an Insurance Scheme


Effective 15 October 2015, employers in the United Arab Emirates (UAE) can opt to have their workers covered by an insurance and pay AED60 only or continue with the AED3K bank guarantee which has been the practice for many years. (Read more here.) The insurance scheme covers up to AED20K/worker end of service benefits, vacation and overtime allowances, unpaid wages, return air tickets and work injuries.

This great move of the leaders reflects how they value the protection of all workers in the country. It is affordable for the employers, aside from the fact that the bank guarantees (total of AED14B) can be refunded provided there is no violation of the labor laws related to salaries six (6) months prior to work permits renewal.

With many channels of information, online or offline, many people are now informed about the importance of having covered by an insurance -- health / life. There are many financial literacy programs offered for free here and there.  And there are also many financial advisors growing in number around.

A friend, an architect by profession, left his job to make it full-time in insurance business. He simply loves his advocacy to promote wellness through an insurance. He advises all overseas Filipinos who attend his meet-ups and seminars to buy an insurance policy even the lowest package to get protected in case something bad happens.

One speaker said that it is better to buy an insurance policy here than in our home country because of lesser risks here so the benefits are better. I think he sees UAE to have a better peace and order situation and more effective health-related programs situation compared to our place.

My friend's younger brother died due to kidney failure recently. He underwent a dialysis for ten (10) years. He was not covered by any insurance so the family spent a fortune in his medication and burial. She said that she really felt regretful that they did not do the right thing to purchase an insurance policy so now she makes it sure that every relative will have one. Later she decided to join the insurance business so she can advise other people to get insured for their own benefits.

Another friend, former president of the Filipino community, shared on her FB wall a cheque image issued by the insurance company for an OFW (overseas Filipino worker), name erased, who got sick. She said that he paid only a certain amount for some months only and very timely as when he got confined in the hospital he received his insurance benefits amounting to AED400K+. The family members got very happy because they had no enough money to cover the hospitalization costs.

Many people say "I just take care of myself so I don't get sick or I don't get injured."  A minute from now, or tomorrow, or next week, we do not know what happens. Knock on the wood -- but if we get sick or meet an accident, then we need to pay for hospitalization bills to save our lives. And what if we do not have enough savings to cover that? Our family members will carry that big load of responsibilities to get through, and will be indebted, if there is no money, over and above their heads.

There are marketing groups and membership clubs that offer insurance packages when you join them. For one, a leading local telephone company prepaid subscribers are covered with a personal accident plan. Yes, insurance coverage is really an attractor!

One real estate company (Filipino-owned) with a branch here sells properties with built-in insurance benefits for the buyers. Good, right?

Another good thing -- life insurance policy can be used as a collateral for some business loans.

It will help a lot of people to be informed more about being protected by being covered with an insurance policy. I think more videos must be shown to explain insurance lingo, terms and conditions, and other related matters, then highlight actual case presentations on availment of insurance benefits, based on local setting.

Short courses on how to be a financial advisor and insurance consultant with certification must be boosted to know more about how the system works, compare different insurance companies' offerings, and help people make a conscious choices on insurance-related matters.

It is high time indeed that we all passionately move to this direction of having an insurance and no one is left behind. It is not just for ourselves but for our families as well.

---

Photo credits:  Pixabay

Comments

Popular posts from this blog

"Wasting of Women's Talents Must Cease"

Here I am in a four-cornered room, thinking of many things that I can do considering my talents, but I cannot utilize to the fullest due to some obstacles which are not just in the mind but real. I am woman -- I know I have a power inside me yet I feel vulnerable. There is an interesting article published in Gulf News, "In the Middle East, Momentum for Women Must Pick Up Speed" written by Shaikh Abdullah Bin Zayed Al Nahyan, dated 31 May 2018. Very timely, indeed, that I saw this article few minutes back. I am inspired to read similar write-ups promoting advocacy on importance of empowering women by giving them solid support. Can we quantify wasted women's talents? Maybe we can in terms of lost opportunities. Or can we enumerate wasted women's talents if we cannot quantify them? There are women who are full-time mothers and housewives, either by choice or by tradition or both. We know that being so is indeed a tiring unpaid job for many women. For some they

Of Ginger-Lemon Water, and A/C Off

  And so I am now again drinking a lot of hot lemon tea with ginger. It will help improve my health immunity .  WebMD.com says, " Lemon is a rich source of vitamin C and antioxidants, which both have immunity-boosting properties. Ginger also has immunity-boosting properties and can guard against some bacteria." Am coughing when my back is sweating. The air conditioner is switched off again. If you are in the Gulf area, even if it is December it is still hot. There are times when it is even hotter inside my partitioned room with a window facing the sun, no building near ours to block the scorching heat -- than the actual temperature outside. I have a temperature app in my mobile phone and I regularly check it. When I switch on the air conditioner, somebody else switches it off. (I remember when we transferred to the our previous flat and I was told that the A/C was centralized, 24/7 on. I was grateful because the heat of human bodies, the lights, their gadgets -- laptops and m

'Hotelcation' and More

My youngest daughter surprised me with the good news that she was allowed to go on Eid vacation for some days. She badly needed rest and relaxation for a work-life balance. It was very hot here in the UAE when we got blissfully reunited at 2 PM.  It was Eid so most hotels nearby were either fully booked, or if not, their room rate boards showed AED800/day +/-. My frugal daughter stepped back when she saw 'towering' figures. A I watched my Buninay eating halohalo in our meeting place, a restaurant serving Filipino foods, I held my tears back. She ordered 'mixed-with-everything' fried rice, grilled squid and  kinilaw  (raw fish with vinegar, chili and chopped onions).  Memories of her childhood flooded in my mind. How time flies! My then-baby-who-is-now-a-lady wanted to spoil me. Felt truly blessed beyond words. We hopped to Seattle's Best in the mall near the mosque. While indulging myself with my favorite Cinnabon bites and strawberry smoothies, and my ol