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SALAMA Insurance Review

In this SALAMA insurance review, let’s take a closer look at the company’s background and its latest financial status. The firm offers many services, including SALAMA car insurance and islamic medical insurance. See if you can find anything that’s best suited to your needs.

If you have any questions or want to invest or get insured as an expat or high-net-worth individual, you can email me (advice@adamfayed.com) or use these contact options.

Who is SALAMA?

SALAMA, also known as the Islamic Arab Insurance Company, was founded in 1979 and is today recognized as one of the world’s oldest and largest providers of Takaful insurance in accordance with Sharia’h law. The company raised 939 million dirhams of capital from shareholders through the issuance of shares.

Takaful insurance is a type of Islamic insurance in which members pool their resources to safeguard one another from financial loss.

SALAMA Easy Life Online Plan Management

The SALAMA Easy Life Online Plan Management platform offers a range of features for convenient and efficient management of insurance plans. Users have quick and easy access to their fund value and portfolio, giving them a full picture of their investment performance. Users can also see their payment history and generate electronic statements for easier record-keeping and control over their money.

The portal features other helpful services, such as the ability to check on unpaid contributions.  A valid email address or phone number is required to activate the online account.

What SALAMA services are available?

General Insurance

SALAMA’s General Takaful department addresses the varied requirements of both individuals and corporations. The company provides solutions for numerous problems, including those relating to property damage, maritime insurance, third-party liability, money, workers’ compensation, employers’ liability, and employee infidelity.

Fire and Allied Perils Insurance

Property damage, stock loss, mechanical breakdown, and disruption of operations are just some of the devastating outcomes that can result from unforeseen losses. These occurrences can drain a company’s resources and lead to secondary losses. In such a situation, financial aid for repairing and replacing lost or destroyed belongings is essential.

Both fixed and mobile assets are fully covered by the fire insurance policy. Structures, equipment, and materials at suppliers’ and customers’ locations, as well as those held in trust or on commission, fall under this category.

Among the many disasters for which coverage is provided are those caused by lightning, explosions, implosion, falling objects, vehicles, animals, riots, strikes, vandalism, subsidence, landslides, storms, cyclones, floods, sprinkler leakage, overflowing tanks, and leaking pipes.

If the policy has a reinstatement value clause, any money spent on fixing something back up to par will be paid for as soon as you’re done. It’s possible that the insurance company won’t pay anything toward restoration costs, opting instead to fix or replace the damaged property.

Factors like as occupancy, physical characteristics, value at risk, additional coverage needs, and information provided on the proposal form all play a role in establishing fire insurance premiums.

salama insurance review property takaful

Property All Risk Insurance

If the covered property suffers accidental physical loss or damage, this policy will pay for the costs associated with fixing or replacing it. The policy protects against many different types of loss or damage, including those caused by fire, lightning, aircraft incidents, explosions, earthquakes, strikes, riots, civil commotion, plus other events and accidents.

It is important that the sum insured fully covers the whole exposure, which might be based on the actual worth of the property or its new replacement value. SALAMA’s technical staff is available to help the insured decide on the sum insured, or the insured can offer the amount themselves.

Property All Risk Insurance premiums are based on a number of factors, including occupancy type, building characteristics, insured values, and additional coverage requirements. There is a deductible for each loss covered by the policy, and there are some situations in which coverage is not provided.

Business Interruption Plan

Note that a Property All Risks or Fire Insurance Policy must already be in place before a Business Interruption Policy can be provided.

The total sum covered, the limit and period of indemnity, the type of the risk, the location, and the general housekeeping measures in place all play a role in determining the premiums for this insurance. The premiums are calculated when factors such the company’s industry, location, and level of security are taken into account.

Each loss is subject to a monetary deductible and a time deductible under the Business Interruption Insurance policy. The policy’s scope of coverage and its other terms are also established by these considerations.

Erection All Risks Insurance

Principals and contractors installing plants, machinery, heavy equipment, and comparable structures are protected by Erection All Risks Insurance. You won’t have to worry about losing money or being held liable for any mishaps that occur while you’re putting up the structure because this policy has you covered.

Contractor’s All Risks Insurance

All Risks Insurance for Contractors is designed to protect businesses who take on civil, mechanical, or electrical contracts, such as those involved in the development of structures like bridges, dams, and towers.  Losses, damages, or liabilities that may arise from both external and internal causes during construction are covered by this insurance policy.

Electronic Equipment Insurance

This insurance protects against the financial loss incurred due to the accidental destruction, theft, or other damage of electronic equipment used in commercial and industrial settings.

Contractor Plant and Machinery Insurance

Many different kinds of plants, machinery, and equipment are employed on construction and erection sites. This insurance is necessary since these plants, equipment, and machinery are vulnerable to different threats and natural disasters.

Deterioration of Stock Insurance

In the case of physical loss or damage to stocks, the insured will be compensated by this policy. This coverage applies to perishable goods such frozen meals and other chilled or frozen things. This policy protects the loss of income that would have resulted from the destruction of these commodities as a result of a malfunctioning piece of machinery.

Machinery Loss of Profits Insurance

After a machinery, plant, or equipment breakdown, there may be additional losses. This unexpected event could stop production and business. Despite the stoppage, fixed expenses like salaries, wages, capital interest, rent, and others continue. The interruption reduces gross earnings and raises operating costs, which is where this insurance will come in.

Machinery Breakdown Insurance

The machinery, plant, and equipment used in process industries, factories, and engineering workshops are protected by Machinery Breakdown Insurance. It safeguards against financial loss due to mechanical or electrical failure.

Except as otherwise provided in the policy terms, the coverage extends to problems such as those caused by defects in casting or materials, improper design or workmanship, physical explosions, centrifugal force-induced tears, short circuits, vibrations, mal-adjustment, misalignment, and other similar factors.

The amount insured should reflect the whole cost to replace the machinery, which includes things like transportation, taxes, and labor. In the event of a breakdown or damage to the machinery, it is essential that the insured sum fully cover the cost of replacement.

Marine Cargo Insurance

Customized to each client’s needs, Marine Cargo insurance provides safety for items in transit. Both one-time shipments and open policies are included. An open policy is a declaration-based contract that specifies goods and their terms and conditions and can be established to cover shipments anywhere in the world.

Hull & Machinery Insurance

Ship owners and managers can protect themselves from the wide maritime threats they confront with Hull & Machinery Insurance from SALAMA. This policy protects the hull and machinery of vessels for both time-based and voyage-based activities. Their insurance policies provide hull-specific protection and indemnity clauses in addition to standard collision coverage.

Yacht & Boat Insurance

The Hull & Machinery, Collision, and Legal Liabilities sections of yacht and boat insurance provide full protection for the insured. There are two levels of protection offered by hull and machinery insurance: basic and full replacement cost. Everything on the boat, from the oars to the radar, is covered by this policy. Most policies will also cover the trailer that is used to transport the boat.

Worker’s Compensation Insurance

The UAE Federal Law No. 8 of 1980 and its subsequent amendments provide extensive protection for workers against the danger of work-related accidents.

Employers can be protected from liability for any payments they may be required to make under such law and any modifications to it by purchasing a Workmen’s Compensation Policy. This coverage guarantees that businesses may meet their legal commitment to compensate workers injured on the job without going bankrupt.

Employer’s Liability Insurance

Employer’s Liability Insurance is typically issued in conjunction with Workmen’s Compensation Insurance, but it can be granted as a separate policy if necessary.

Public Liability Insurance

Public liability insurance covers business owners who are liable for incidents caused by negligence.

Travel Takaful

This insurance policy is comprehensive, protecting you on excursions of any kind, be they for business or pleasure.

Money Insurance

This insurance policy covers currency like cash, notes, checks, securities, stamps, and similar items while being moved from the premises to the bank and back, in the office safe, temporarily taken out of the safe during working hours, or when the company’s personnel have it.

Based on customer needs, this policy can be adjusted to add extra money insurance extensions. The insured party can customize these extra provisions.

Individual Personal Accident Insurance

This coverage is available round the clock and covers a global scope. It provides predetermined capital benefits for accidental death, bodily injury, temporary and permanent total disablement, as well as interim and lifelong partial disablement.

Misappropriation and embezzlement by employees can happen even if a company has strong internal controls in place. Companies can avoid exposure to these dangers by purchasing a fidelity guarantee insurance policy.

Group Personal Accident Insurance

If you or a loved one are ever killed, seriously injured, or totally or partially disabled, this policy will pay out a sum of money determined by the terms of your policy.

Auto Takaful

salama insurance review auto takaful

SALAMA car insurance protects the policyholder in the event of an accident, rollover due to mechanical failure or normal wear and tear, fire, external explosion, self-ignition, lightning or thunderbolt, burglary, theft, or malicious acts by third parties. The vehicle is protected not just while it is parked; coverage continues throughout the loading and unloading procedure regardless of whether the vehicle is traveling by land, sea, air, or elevator.

The policy also covers protection against claims made by uninsured third parties. The insured and their family (spouse, parents, and children) are not covered for motor vehicle accident injuries or damages. Compensation for bystanders, pedestrians, and other parties engaged in the collision is the sole purpose of this insurance.

Business clients in the UAE can turn to SALAMA for vehicle fleet coverage and associated services. They offer Motor Fleet insurance for both company-owned and leased vehicles, as well as personal auto insurance for employees who drive for work. Vehicles damaged by collisions, fire, theft, natural disasters, third-party injuries and property loss, are all covered.

SALAMA offers additional advantages and services to assist clients in the management of risks and claims, on top of the coverage itself.

Access to telematics and data analytical solutions, 24/7 claims reporting, designated claims handling teams with local and international coordination, the ability to offer captive and non-conventional solutions, access to breakdown and accident services via Road Side Assistance, and a team of motor fleet experts available nationally and internationally are provided to clients.

Health Takaful

There are two primary options for coverage via Salama Health Insurance, the Essential Benefits Plan and the Enhanced Benefits Plan.

Residents of Dubai with monthly incomes of less than 4,000 dirhams are targeted under the Essential Benefits scheme. The policyholder, their working or non-working dependents, and their domestic staff are all covered.

Individuals and families have several flexible alternatives to choose from under the Enhanced Benefits Plan, which provides extensive insurance protection. Silk Road, Green, Silver Classic, Silver Premium, and Gold Premium are the names of the coverage tiers provided by this policy.

Family Takaful

Whole of Life Insurance

Hyat Superior Whole of Life Insurance provides international protection and a Family Takaful Benefit in the case of the Covered Member’s untimely death. It has a built-in provision for terminal illness. Any legal person or corporation is welcome to purchase this policy. Both single and joint life policies are available.

The entry age for this policy is between 18 and 74 years old, and its maturity age is when the insured turns 100 years old. The policyholder can choose among monthly, quarterly, semiannual, or annual payments in either dirhams or US dollars. The minimum payment duration is 5 years.

Meanwhile, Hyat Secure offers worldwide coverage and includes a Family Takaful Benefit in the event of the Covered Member’s death during the plan’s term. It also includes a Terminal Illness Benefit as standard fare.

Hyat Secure, like Hyat Superior, offers coverage for either a single life or a joint life for its owners. This plan is available to anyone between the ages of 18 and 64, and it ends when the participant reaches 100. The same payment schedule and currencies are offered, except the minimum payment period for this plan is 7 years.

After three years of plan payments have been made, both policies allow for partial or full encashment, but charges may apply. The premium payment grace period is 90 days, and the free look period is 30 days from the policy issue date for the policyholder to study the terms and conditions.

Term Plans

Hemaya Plus and Hemayati Plus are two term insurance plans from SALAMA.

Both policies cover policyholders for a set amount of time and let them choose between making recurring or a lump sum payment. Plans can be purchased in either US Dollars or dirhams at the policyholder’s discretion. In addition, both plans have a free look period during which policyholders can examine the terms and conditions of the plan without incurring any costs.

However, entry age for Hemaya Plus is 18-74 years old, while that for Hemayati Plus is only 18-55 years old. Differences also exist in the maximum maturity age, with Hemaya Plus covering the insured up to age 100 and Hemayati Plus covering them up to age 70.

In addition, if no claims are filed during the plan’s term, Hemayati Plus provides a unique feature of a 100% guaranteed maturity bonus. Policyholders can think of this incentive as an extra financial perk. Hemayati Plus also offers a choice of term durations, including 5, 10, or 15 years, providing flexibility to suit individual needs.

Saving Plans

SALAMA provides savings plans called Idikhar Plus and Idikhar Plus Secure, both of which feature a life insurance component. Moreover, they both offer up to five times as much life insurance as the initial annual premium.

Both plans include either single or joint life coverage, accept participants aged 18-74, let them choose between monthly, quarterly, semiannual, or annual payments, and let them choose between AED and USD as their currency.

Idikhar Plus and Idikhar Plus Secure give policyholders the ability to make partial encashments after 3 years of plan contributions and the option for full encashment, subject to encashment charges.

Although Idikhar Plus and Idikhar Plus Secure have many similarities, there are also key distinctions between the two. With Idikhar Plus, you can get a bonus on your first day that’s equal to up to 25% of your annual contribution for the first year. It also includes a terminal sickness benefit to protect policyholders should they be diagnosed with a life-limiting sickness. The policyholders of Idikhar Plus Secure, on the other hand, are guaranteed to get back the full amount of their payments regardless of when they were made during the plan’s duration. The plan also allows for a single contribution option, specifically on a 5-year plan term, with a minimum contribution of 100,000 dirhams.

Investment Plans

SALAMA offers two investment plans: Wealth Plus and MOMAYAZ.

There is no maximum contribution amount for the Wealth Plus plan, but the minimum contribution is 100,000 dirhams. It provides takaful coverage for families at a rate of 101% of the individual’s contribution.

The plan is open to both individuals and businesses; individuals joining must be between 18 and 70. Long-term investors will appreciate the maximum maturity age of 85 years.

One distinctive aspect of Wealth Plus is that it allows for unlimited further contributions, with a minimum of 50,000 dirhams or the US dollar equivalent. In addition, there are no fees to swap funds with this investment scheme.

MOMAYAZ, meanwhile, is a one-time investment plan with a variety of funds available to suit different levels of risk tolerance. An investor can access their money whenever they need it thanks to the plan’s partial withdrawal feature, which is available throughout its term. Investors can select between USD and AED, and MOMAYAZ also provides a Family Takaful Benefit.

The low fees associated with the plan’s investment management services help keep costs down overall. Depending on the investor’s needs and choices, MOMAYAZ can be set up as a long-term or medium-term investment. Each and every dollar invested goes directly toward the selected funds (a 100% allocation rate). A further perk for long-term investors is the loyalty bonus MOMAYAZ offers.

Home Insurance

There are various levels of home insurance protection available.

The Bronze plan covers up to 50,000 AED of the insured’s property. Additionally, valuables are covered up to 12,500 AED. 750,000 AED public liability insurance is included.

The Silver plan protects items up to 100,000 AED. Valuables are now covered up to 25,000 AED. 750,000 AED or more is owners’ public liability.

The Gold plan protects things and valuables up to 200,000 AED and 50,000 AED, respectively. There’s at least a million dirhams in public claims.

The Diamond plan covers valuables up to 500,000 AED and items up to 100,000 AED. Owner liability to the public is the same as the Gold scheme.

How is SALAMA insurance?

In terms of finances, SALAMA logged profit of 8.04 million AED in its first-quarter 2023 results. Insurance revenue jumped 18% year over year to 265 million AED.

The company’s total assets currently stand at 3.56 billion AED.

Pained by financial indecision? Want to invest with Adam?

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Adam is an internationally recognised author on financial matters, with over 735.2 million answer views on Quora.com, a widely sold book on Amazon, and a contributor on Forbes.

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