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Life insurance policies cover the risk of death from "Covid-19"

Insurance companies operating in the United Arab Emirates have confirmed that life insurance policies and takaful family insurance cover deaths due to the emerging corona virus if the document does not stipulate otherwise, indicating that this type of insurance is is among the best performing products during the current period besides health insurance. , Vehicle insurance.

They indicated that despite the challenges that the Corona pandemic imposed on the performance of the sector at the local and global level, it coincided with the increase in people's insurance awareness towards insurance products in general, the most important being health insurance and life.

Muhammad Mazhar Hamadeh, CEO of "Al-Ain Al-Ahlia Insurance Company", in his answer to the question from (Al-Ittihad), confirmed that the risk of death (for any reason) is covered by all insurance policies life, unless an exception is mentioned in the document.

Life insurance products represent an important and fundamental part of the insurance business, since they provide beneficiaries with documents and those who wish to make long-term investments, the amounts owed on the expiration date of the policy or when the insured risk is realized , in addition to the previously agreed investments. Enter it, according to the terms of the policy.

Family Takaful insurance is the parallel alternative to traditional life insurance policies. Family Takaful insurance offers life insurance products, in accordance with controls that are consistent with the provisions of Islamic Sharia law, for those who wish to obtain them.

Jihad Vitrouni, Executive Director of Dubai Islamic Insurance and Reinsurance Company, "Aman", told "Al-Ittihad" that all "takaful family insurance" documents and products issued by the company cover cases of death caused by Corona without no ambiguity on that. He added that from a legal point of view, Life and Takaful insurance policies cover deaths from infectious and epidemic diseases if the policy does not stipulate otherwise, noting that most of the old companies in the insurance field do not add this exception, in order to preserve your credibility, and even to ensure the provision of enhanced real value in your insurance products.

He noted that "solidarity family insurance" and life insurance are among the insurance products that insurance companies have worked with for decades to sensitize people to their importance, noting that the Corona pandemic coincided with an increase in public awareness of the importance of this type of insurance that contributes to strengthening cohesion as it represents. A form of solidarity between the participants in a single Takaful folder.

Public awareness

For his part, Ramez AbuZayd, general manager of the National Insurance and Reinsurance Company of Dubai, confirmed that life insurance policies cover the risks of death, including deaths from the "Covid-19" virus, if the document does not stipulates otherwise. Abu Zeid added that the life insurance policy is like a contract between the issuing company and the policyholder and its provisions, so its texts are binding on both parties as long as they do not conflict with the regulations that governs the sector. Abu Zeid noted that with the accumulated investments of insurance companies in the field of technology infrastructure in recent years, most companies were able to quickly switch to work systems to adapt to precautionary measures to limit the spread of the Corona virus, and then continue to issue various types of documents, including insurance policies. Lifetime.

He said that his company has detected an increase in inquiries and subscriptions related to life and health insurance by companies and individuals, referring to the increase in people's awareness of the importance of this type of insurance.

Instructions and controls

 The Insurance Authority issued instructions related to life insurance and takaful family insurance, which were prepared in accordance with the latest international standards, which ensure a balance between the interests of all parties in the market, but the Authority granted the insurance companies within 6 months to reconcile conditions, starting in mid-April, as part of initiatives. Motivation related to the Corona pandemic.

These instructions arise from the Authority's desire to create an attractive legislative system and incubator, either at the level of insurance companies that practice this type of insurance business, or at the level of the insured and beneficiaries of insurance policies. , either for companies that practice conventional insurance or takaful family insurance. The new instructions will apply to insurance policies written after the provisions of the instructions come into force.

Total written premiums for all insurance branches amounted to DH 43.7 billion, of which DH 31.7 billion were in the property and liability insurance branch, and DH 12 billion in the branch of personal insurance and money formation in 2018.

The insurance market in the UAE is also the first in the insurance market in the Middle East and North Africa region, for 10 years in a row, and the UAE insurance market advances one position annually, reaching position 37 in all insurance markets in the world in 2018.