“Insurance firms had a huge number of claims requests that were registered. After the record April 16 rains , within 3 months, the majority of claims were evaluated and successfully paid out. Some were declined because there were people who tried to take advantage of the situation. I would say the majority of the claims have been paid out where insurance companies thought it was right for them to pay,” said Toshita Chauhan, business head at Policybazaar.
“For us, we don't have any claim files opened for that period. Also, the central bank has opened a complaint registry for the consumers. If they felt they were not being treated fairly, they may file a complaint,” she said.
Stay up to date with the latest news. Follow KT on WhatsApp Channels.
According to global ratings agency S&P, UAE insurers lost up to $2.5 billion (Dh9.175 billion) due to rains in 2024, including the unprecedented rainfall in April which was the heaviest in 75 years .
The rains caused massive losses to properties and vehicles in Dubai, Sharjah and other northern emirates.
“Th overall ecosystem helped and customers were extremely understanding and patient as garages were full. The worst is over. The impact is now on premiums. When customers get their renewal premiums, although there may be no claim customers, they may be paying more than last year because the overall risk has been accounted for,” Chauhan told Khaleej Times in an interview.
Toshita Chauhan
According to global professional services firm Aon, UAE was ranked among the top four countries which listed costliest insurance events last year.
“Flooding was the dominant peril in Europe, the Middle East and Africa (EMEA) and all its sub-regions, being responsible for more than $35 billion in losses. This was driven by events in Spain, Central Europe, Germany, UAE and elsewhere,” Aon said in its Climate and Catastrophe Insight report.
Inquiries on the rise
Policybazaar said it has also recorded a 75 per cent rise in inquiries related to health insurance in the wake of the rollout of mandatory health insurance in the northern emirates from January 1, 2025.
She attributed the increase in inquiries to multiple reasons including changes in regulations and new pricing of health insurance policies in Dubai.
“Customer behaviour changes whenever there is a deadline or fine associated with anything, and UAE manages it very well operationally. It gives you ample time and a date when rules will come into effect,” she added.
Enhanced coverage
In addition, Policybazaar launched PB Advantage, transforming how health insurance is sold, purchased, and claimed in the UAE.
The program provides customers with 30-minute claims assistance from a dedicated insurer-claims desk. It automatically restores the sum insured after the first claim, providing extra coverage equal to the original amount.
For example, if an initial coverage is Dh1 million that is used for surgery, the Auto Recharge will add another Dh1 million for any future claims related to a different illness or condition. PB Advantage also enhances the coverage through a no-claim bonus, by adding a 10 per cent sum assured each year for every in-patient claim-free year, up to a maximum of 5 years.
“PB Advantage was created in response to the challenges we often hear from customers. We wanted to address these pain points head-on with a programme that simplifies and enhances the health insurance journey.
"An important pain point is also getting quicker turnarounds in terms of premium rates for those with pre-existing conditions. With PB Advantage we want to assure such customers that within 60 minute of them raising a query, they will have an accurate quote from the leading insurers in UAE,” said Toshita Chauhan.