Majority of residents have no insurance coverage

Awareness of benefits of takaful coverage is still minimal, official says

National Bonds said yesterday most of the UAE residents don’t have an insurance coverage, with only a small minority covered for illness and disability.

About 73 per cent of UAE national respondents who participated in the survey pointed out that they do not have takaful life coverage, compared to 27 per cent who are covered by traditional policies, a survey conducted by National Bonds revealed.

The results among expat residents of the UAE indicate that 83 per cent of all nationalities have no takaful life coverage, while 17 per cent have traditional life insurance cover, it added.

“We are not surprised with the third quarter results of the National Bonds Financial Health Check - it reiterates our understanding that the awareness about the benefits of takaful coverage is still minimal among the UAE residents. This explains the slow growth of the takaful sector in general,” Mohammad Bitar, Chief Commercial Officer of National Bonds, said in a statement.

“The majority of the social strata, regardless of nationality, is unable to grasp the significance of insurance and its impact on an individual’s and family’s stability and security. They also don’t effectively understand the difference between traditional insurance and takaful, let alone comprehend the actual benefits of takaful, which focuses on social cohesion and involves the collective sharing of any burdens,” Bitar said.

National Bonds is currently settling the first claim for coverage against loss of employment by one of its regular savers via the strategic local Takaful partner.