Emirates Insurance allows the existing “document” to be extended for an additional 6 months before raising the price
Excessive use of health insurance cards raises the price upon “renewal”
In accordance with the law, insurance companies may not issue a health insurance “policy” for a period of less than one year. Archive
Abdul Mohsen Jaber: The basic principle in contracting and renewal is that it is completed periodically every year, and (extension) is an exception that cannot be based on it, and according to specific cases.
Chairman of the Health Insurance Committee at the Emirates Insurance Federation, Abdul Mohsen Jaber, said, “Excessive use of health insurance cards leads to an increase in the premium price upon annual renewal.”
He added, in response to business owners’ complaints about the companies insuring them requesting a price increase upon renewal, or granting them only six months for the duration of the health insurance card and not a full year, that “excessive use may incur losses to the insurance companies if the premium price is not raised.”
Jaber explained to “Emarat Al-Youm”: “In principle, according to the law, the contract for health insurance with companies is for a full year, but it sometimes happens that there is excessive use of the health insurance card, whatever its reasons, and here the insurance companies bear losses, if they do not It raises the price upon renewal, to match recurring claims.
He added: “It happens that the insurance company negotiates with the employer to (extend) and not (renew) the insurance card for an additional period of six months, after which the new contract is concluded according to higher prices that suit the frequent use of employees,” pointing out that “the principle of contracting and renewal is to complete it periodically every It is general, but the issue of (extension) is an exception that cannot be based on it, and according to specific cases that are not prevalent.” The head of the Health Insurance Committee said: “The health insurance premium is usually paid according to a proportional ratio, in a way that ensures good coverage according to the agreed-upon schedule of benefits, and at the same time in a way that does not cause losses to the insurance companies.” He continued: “It is important for business owners and insureds to realize the importance of cooperation and clarity when contracting or renewing in a way that is in the interest of both parties,” stressing that “insurance companies are not permitted, in accordance with the law, to issue a health insurance policy for a period of less than one year, but they can.” Extending the existing (policy) for an additional period of six months as an extension before raising the price.”
Jaber stressed that “high consumption rates necessitate raising the price when renewing in order to avoid loss, and this is what the insured must understand, so that the usage is acceptable, and within the normal limits agreed upon when contracting.”