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Dubai: Insurers add dental, mental health coverage as premiums rise up to 20%

Not all have adjusted premiums despite adding these benefits, but some have revised rates, said an insurer

Published: Thu 9 Jan 2025, 6:00 AM

Updated: Thu 9 Jan 2025, 6:27 PM

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Dubai residents and companies will have to shell out up to 20 per cent more for their health insurance but insurers have added some major benefits such as dental, psychiatric, organ transplant and dialysis in the new upgraded packages.

Industry executives suggest that these benefits “make health insurance more comprehensive” for policy buyers.

As reported by Khaleej Times earlier, these new costs and benefits came into effect on January 1, 2025, in the wake of recent regulatory updates mandating additional benefits and modifications to the table of benefits in health insurance plans.

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Avinash Babur, CEO of Insurancemarket.ae, said some insurers have revised their rates by 10 to 15 per cent, likely reflecting their own claims experience from 2024. However, these changes are not uniform across all insurers or policies.

Avinash Babur

Avinash Babur

“Some insurers have revised premiums, particularly in health insurance, while others have maintained their existing rates. These variations largely depend on individual insurers’ claims experience and market strategy. The rates for basic and enhanced basic plans have changed for one insurer, with an increase of around 20 per cent. This seems to be a targeted adjustment rather than a trend affecting all insurers,” he said.

Moin ur Rehman, executive director of Unitrust Insurance Broker, said health insurance premiums for both basic and enhanced policies have been increased by approximately 20 per cent, with around 75 per cent of firms revising rates.

Moin ur Rehman

Moin ur Rehman

Toshita Chauhan, business head for health and motor insurance, Policybazaar.ae, said health insurance premiums have seen an increase of up to 20 per cent.

Toshita Chauhan

Toshita Chauhan

“Health insurance, both individuals (independents) and companies, will experience higher premiums due to the recent regulatory changes. The government’s updated health insurance regulations emphasise improving healthcare access and quality. These modifications, while beneficial, have driven the need for premium adjustments to accommodate the increased coverage,” she said.

Benefits

Chauhan explained insurance firms are revising premiums and benefits to accommodate the inclusion of additional coverage options, such as dental care, mental health check-ups, dialysis and much more. “While this may lead to a premium increase, the positive side is that these changes make policies more comprehensive, offering protection in areas that were previously not covered, ensuring a more holistic approach to healthcare,” she added.

Avinash Babur said some insurers have introduced new benefits to align with updated requirements from the Dubai Health Authority (DHA).

He elaborated that these include enhanced coverage for critical needs such as organ transplant (up to Dh100,000 for recipients only), dialysis (up to Dh60,000), and annual drug and medicine costs (up to Dh2,500, restricted to formulary products. Similarly, mental health outpatient counselling has been added with coverage up to Dh800, dental benefits up to Dh500, and repatriation costs for the transport of mortal remains up to Dh5,000. These enhancements are accompanied by co-insurance limits, such as 20 per cent for organ transplantation and dialysis, and 30 per cent for outpatient counselling and prescription medicines.

“Not all insurers have adjusted their premiums despite adding these benefits, but some have revised rates to reflect these changes," said the chief executive of Insurancemarket.ae.

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