This is what insurance waiting period means
Official explains regulations of a first-time cover
Pre-existing health conditions are not covered during the initial six months when expatriates apply for insurance for the first time, a top official said. However, these conditions are covered for those migrating to new health insurance while changing jobs.
Saleh Al Hashimi, CEO of Dubai Health Insurance Corporation (DHIC) told Gulf News, “Waiting periods are a standard practice in many insurance policies, but predominantly seen in the health insurance sector to prevent an unnecessary rise in annual premiums.”
Fraudulent claim-seekers
The waiting period helps prevent people from buying insurance only to cover the cost of an illness or surgery that they are aware of as opposed to buying insurance as a security for when it is needed, explained Al Hashimi.
This mechanism thus prevents quick claim-seekers from buying insurance only for a period of treatment for a particular surgery or illness, otherwise the burden of this payment would fall on the rest of the insurance payers, he added.
“It is for this reason that insurers rightfully utilise the allowed waiting periods to avoid abuse to their pooling of funds and to avoid unnecessary litigation,” he said.
Misuse by foreigners
If waiting periods were not allowed, there would be an influx of individuals migrating to Dubai to purchase health insurance only to obtain known required treatments at 10 times higher than the premium they had purchased their policy for, he explained. This would in turn severely hurt the insurance sector and drive up premiums for the population in subsequent years.
Recognising that waiting periods can also hassle genuine policy holders, the DHA has worked out a system to allow emergency treatments for free even in case of a preexisting treatment.
Emergency situations
“At Dubai Health Insurance Corporation (DHIC), we have allowed a six-month waiting period against preexisting conditions, however, if a preexisting condition develops into an emergency, the waiting period
episode,” said Al Hashimi. “In fact, there are insurers that offer a reduced or no waiting period, therefore this is not a mandatory requirement for all policy types.”
He also added that waiting periods do not apply as people have been in the mandatory insurance system for over three
The process of antiselection, increased insurance claims unjustly, which in turn drives premiums higher inflating the cost for everyone. This is always felt in subsequent years during renewal”
“Realistically as we are in the third year of implementation of the mandatory health insurance in Dubai, the majority of insured members will not have waiting periods unless they are a new entrant to Dubai and are purchasing their first policy or unless they have not complied with the law.”