Since the insurance industry is dynamic, misconceptions and myths often prevail due to outdated information or misinterpretation. We have debunked some of the common myths below and explained why consulting an insurance broker would enable you to evaluate multiple options to make an informed decision and assist you during the claim settlement process.
Health Insurance
Myth 1: Large hospital network list means better coverage
There is a general notion that an extensive hospital network means better coverage for health insurance plans. While having many hospitals in the network list is useful, factors such as premium, inclusions, and exclusions are just as important. During an unfortunate medical emergency, the proximity of the network hospitals can substantially impact the treatment and healing process. While discussing your health insurance needs with your advisor, ensure you focus on all important factors and not just the expansiveness of the network list.
Myth 2: Young or/and healthy people wouldn’t need health insurance
Most young and healthy people believe they do not need a health insurance plan, which is not the case because while you maintain the best physical and mental well-being, unforeseen medical expenses will arise in the event of accidents and injuries. In the absence of a health insurance plan, you will be forced to pay from your pocket and, in turn, risk your financial stability. Most insurance brokers and advisors would recommend investing in a health insurance plan while you are young and healthy as you can avail better premiums and exhaust the waiting period when you don’t need medical coverage.
Myth 3: Health insurance does not cover maternity
A common myth with health insurance plans is that they do not cover maternity. Most health insurers in the UAE provide coverage that includes prenatal, postnatal, and delivery expenses as per the agreed policy terms.
Car Insurance
Myth 4: Expensive car means high premiums
It is assumed expensive cars will incur higher car insurance premiums, but this might not always be true. The car insurance premium gets affected by spare parts used in the car, driver’s experience, age, number of claims, etc. Many times, an expensive car might have a lower car insurance premium due to other factors. A car insurance broker or advisor would have the expertise to suggest the best options depending on your car and other needs
Myth 5: If the car is driven by somebody else, the car insurance is void.
There is a common misconception that if someone was to drive your car and cause an accident, the car insurance does not apply as it was not the owner of the car driving. This is not true in the UAE because car insurance is calculated based on the car. So regardless of who the driver was, the insurance would apply just as long as the driver owns a valid driver’s license.
Myth 6: All repairs are covered in car insurance
Mechanical repairs or routine car maintenance measures are generally not covered in car insurance plans. This is because the purpose of insurance is to provide aid for you in the event of accidents. Maintenance and servicing such as oil changing, radiator checks, battery, and tyre checks are not usually covered in a car insurance plan. Consequently, it is important to consult an insurance advisor or broker to understand the type of insurance coverage that is right for you.
Home Insurance
Myth 7: Home insurance covers property maintenance
Home insurance does not cover general property maintenance. A home insurance policy may cover damage from an unprecedented calamity or causes stated in your policy, for example, fire, theft, earthquake, and flood. General home maintenance such as repairs, fixtures, and fittings are not covered part of home insurance policies. An insurance broker or advisor would be able to appropriately advise on suitable plans to protect your home-sweet-home.
Travel Insurance
Myth 8: Travel Insurance only covers catastrophes
Unknown to many, travel insurance covers more than just catastrophes such as accidents and injuries. A comprehensive travel insurance plan usually covers other unexpected events such as flight delays, flight cancellations, loss of baggage, and more. It is important to consult a travel insurance advisor to understand what your travel insurance covers, to mitigate the risk of any emergencies that might arise while traveling
