Insurance Service and its significance in United Arab Emirates
Insurance is a service through which an entity or person transfers its risks of losses to the other company which is providing the service. The idea is that of risk management with the principle of risk hedging being followed to save an entity from contingent and uncertain loss or losses in return for a payment known as insurance premium. The person or company providing the safety or insurance against losses is known as insurer or insurance carrier and the person buying the insurance policy that is the service of the insurance carrier is known as insured or policy holder. The transaction occurring between the insured and the insurer is that the insurer will receive definite amount of payment from insured after a regular interval in return for the promise to indemnify the insured of the personal financial losses incurred by him. This overall contract is known as Insurance Policy.
Insurance can be obtained for almost any sort of losses that can be quantified. These specific losses that can be claimed later are known as perils. The contract, Insurance policy, will state which types of perils are being covered by the policy that will be indemnified in case of loss. This also implies that the perils that aren’t included in the insurance policy will not be indemnified no matter how great or small the loss is. Insurance these days come into a variety of packages both for business and home personnel. These packages cover a specific piece of property of the business or individual and the relevant perils attached to it. These packages include Auto insurance, Health insurance, Life insurance, Credit insurance and insurances for other sorts of properties.
With the recent development and growth in the United Arab Emirates and the huge number of businesses moving in there, insurance has become a vital need for the people and businesses in UAE. The insurance sector has gained such a boost that it shares a relatively significant portion of revenues in the overall economy of the UAE. Especially in the city of Dubai, the need of insurance is most important due to the recent growth and development. Dubai has over the past decade has obtained the shape of an international metropolitan city with booming businesses and increasing life style. Also from 1st January, 2009, the health insurance Dubai has become mandatory for all the residents of Dubai thus the insurance sector have experienced a great growth of around 20% per annum. This business opportunity has attracted the attention of foreign companies. The Dubai insurance company now provides almost every type of known insurance available in the world.
Like Dubai, health insurance is also very popular among the other parts of UAE. UAE health insurance companies provide their clients with different sorts of insurance plans that are dissimilar from each other and can fulfill the needs and requirements of a particular individual providing him with enough funds that may cover his/her medical expense requirements.
Car insurance UAE is also an important component of the overall insurance sector in UAE. With the great amount of cars manufacturers and car users present in the country, the auto insurance industry has become a vast ocean. There are around 20+ insurance companies that provide insurance services at competent prices to the people. The driving rules in UAE are quite strict and they have a significant influence over auto insurance policies in UAE.
Insurance is a service through which one protects itself from the loss by obtaining compensation of loss from an insurance company. Insurance is quite popular in UAE and the insurance industry is one of the most successful business sectors among the economy. The popular types of UAE insurances include car and health insurance.