Failed insurance scheme upsets Sharjah Indians

A group medical insurance scheme launched with much fanfare by the Indian Association Sharjah (IAS) just three months ago has ended in a fiasco after the insurance company stopped accepting claims.

IAS officials said they are planning to take legal action against the group insurance company, which has backed out of the scheme.

IAS officials also say the company collected Dh700 each from about 1,600 IAS members and associate members who joined the insurance scheme but is not respecting claims now.

IAS members who spoke to Emirates 24|7 said their cards are not accepted in any of the clinics listed by the insurance company.

The insurance company blocked the cards three months after the scheme was launched in June 2013 allegedly because the company incurred losses after some members made fraudulent claims.

“I paid Dh400 for group insurance and I believe IAS also paid Dh300 as its contribution to the premium. When I went to a clinic, I was told that the card cannot be accepted because it is blocked by the insurance company. Later I learnt from friends that the three-month old scheme is not working because all the 1,600 insurance cards have been blocked,” said an IAS member.

According to sources close to the insurance company, the problem started after allegedly fraudulent claims were made by some IAS members.

“I joined the scheme for 11 staffers of my company and paid the premium. Now the insurance card is not accepted anywhere. We feel this is tantamount to cheating,” an IAS member told this reporter.

Yousuf Sageer, a senior IAS member, told Media One TV that it is a clear case of cheating by the insurance company and the association will take legal action to recover the paid premium.

IAS issued an official statement that the insurance had blocked the cards it issued after Media One TV did a report quoting IAS president YA Raheem and other officials.

Raheem said four companies were shortlisted and due diligence was exercised before awarding the contract to the insurance company.

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