Dhofar Insurance plans JV for health insurance firm

16/02/2014 09:28 AST

A memorandum of understanding (MoU) was signed between Dhofar Insurance Company and Munich Health Daman Holding for forming a joint venture company specialised in health insurance in Oman, said a disclosure statement posted by Dhofar Insurance on MSM website.

If everything goes well, it will be the first specialised health insurance company in Oman.

In fact, Oman government actively considered a plan for introducing compulsory healthcare insurance for expatriate workers in the corporate sector few years ago, but no decision has been taken so far.

Cashless scheme
Employee medical insurance is a cashless scheme wherein the insurance company, which ties up with a network of hospitals/polyclinics, gets volume business and the employees of its corporate clients get access to cashless healthcare facilities. Once the company pays its group medical premium, there is no administrative work for the company and all worries related to employee healthcare would rest with the insurance company and the concerned hospital.

Authorities will have to monitor the private hospitals and polyclinics to check malpractices, before making group medical insurance mandatory. Private health centres have to be better regulated and corporate governance should be introduced there. More than 10 local companies and several multinational firms are currently offering employee group medical insurance to the sultanate's corporate clients.

Times of Oman