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September 26, 2016 | 13:25 | Dubai
The majority of the UAE’s residents, comprising both nationals and expatriates, are yet to sign up for takaful coverage while only a minority is covered by traditional insurance against illness and disability, according to a survey National Bonds Corporation, the sharia-compliant savings and investment company in the UAE. The Financial Health Check for Q3 2016 that focused on the takaful coverage of National Bonds’ customers included all the customers that had signed up for the Sanadi plan since its launch in April. 73% of UAE national respondents who participated in the financial health check survey pointed out that they do not have takaful life coverage, compared to 27% who are covered by traditional policies. Within the UAE national pool of respondents, 89% admitted to not being insured against disabilities through takaful in contrast to 11% that have traditional coverage against disabilities.
The results among expat residents of the UAE indicate that 83% of all nationalities have no takaful life coverage, while 17% have traditional life insurance cover. In addition, 76% of expat participants in the survey are not covered for disabilities through takaful, compared to 24% that are insured for disabilities through traditional policies. The financial health check also charted the financial stability of participants. The results of the present survey are encouraging and indicate that 67% of UAE nationals and 72% of expat residents plan to pay off their liabilities and become debt free by end of this year, as opposed to 33% UAE nationals and 28% expatriates who do not plan to free themselves from the debt cycle.