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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.

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Photo credits:  Pixabay

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