Expats warned to double check insurance policies before signing on

Published:  21 Jun at 6 PM
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Tagged: Visas, Dubai, UAE

Expats are being warned to read all the small print on their job loss insurance policies.

For expats working in Dubai, the possibility of having their contracts terminated in advance of the due date can cause a major upheaval, with many taking on insurance policies which cove them in the event of being involuntarily out of a job. However, reading the small print very carefully before signing on is now being recommended as changes in policy terms are being used to deny expats the contracted amount.

One unfortunate expat found this out the hard way after he’d signed on for insurance coverage against the sudden loss of his job and paid a hefty premium. In April 2017 he’d received an email from his insurance company advising him of policy changes contained in a 12-page attachment. He hadn’t time to read up on everything, but called the insurer for information of changes relative to his cover. He was told the policy amount had been halved from Dh300,000 to DH150,000, and the premium as well as the DH500 monthly savings element would continue with an increased amount being paid to the policy. He decided to keep the insurance on.

Sadly, six months later he lost his job, but the insurance company only paid out Dh37,500 instead of the Dh150,000 he’d been promised. The company cited a paragraph in the 12-page document which stated a policyholder who’d lost his job but kept his visa and was still in the country would only receive either 25 per cent of the sum covered or three monthly payments, whichever was less. The unhappy expat took his complaint to the UAE’s Insurance Authority which, unsurprisingly, sided with the insurance company.

The expat feels the insurer misrepresented the changes which he feels were unethical and unfair, and is urging expats tempted to take out similar insurance cover to read and have explained all aspects of the policy before signing as well as keeping a close eye on any changes.
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