Why is medical insurance mandatory in the UAE?

Health insurance is a contract that protects a covered person’s care and operational costs. It pays the covered person’s treatment provider directly for the effects of sickness or disability. One way to ensure health/medical emergency is by insurance. Health insurance has great versatility with respect to the coverage of disease/illness.

A restricted or broad range of treatment services can apply in health care and the completely or partially expenses of certain medical services may be payable. Positive effects may include access to certain preventive care or payment of medical expenditures stated by the insured.

A healthcare insurance scheme, arranged by an insurance corporation or another private entity, is referred to as the private or charitable health insurance with guarantees set down in an agreement.

Factors of medical insurance in the UAE

The UAE is the seven Emirates democratic federal system: Abu Dhabi, Dubai, Sharjah, Ajman, Umm Al-Quwain, Ras Al-Khaimah, and Fujairah. And there are quite a lot of Insurance Companies in the UAE, so, let’s learn a little about these here.

  • In Abu Dhabi, medical insurance was compulsory for both employers and employees, and the cost of the fourth child had to be accepted by the worker. Dubai regulation also enables executives to supply their employees with medical care.
  • In the northern part of the UAE, i.e., the employers are not mandated to offer health care to workers by statute Ajman, Ras Al-Khaimah, Sharjah, Fujairah, and Umm Al-Quwain. The insurance plans can be modified by the firms.
  • Pursuing Health Coverage Scheme in Dubai mentions 50 medical insurance providers in the UAE on their portal. You will pick the insurance right for you using various review resources available online.
  • The highest allowable coverage is roughly 150,000 AED – 250,000 AED. Where applicable, the added insurance pay-out allows employees to obtain more cover.
  • The 65-year limit for use of insurance cover is the age limit for age-related disabilities and health problems. The premiums may equate to AED 30 000 for people over the age of 50 years.

Dubai Healthcare Insurance Act No 11 of 2013 allows all citizens to have a certain standard of health coverage that complies or satisfies Dubai Health Authority’s (DHA) with minimum benefits.

The Legislation also specifies that the standard protection insurance should also protect any employee’s dependents (e.g. spouse and children) and household employees (e.g. maids, cooks, or drivers). This basic health care is also known as the Essential Benefits Plan (EBP).

Charges or Fines

The DHA claimed penalties would be levied on sponsors and employers who do not cooperate. For each month of non-compliance, fines under AED 500 are imposed and no new visas are presented and current visas are not updated. Fine charges are made during the citizenship visa extension or cancelation.

For Emiratis, the government-supported scheme that is developed by the DHA protects their health coverage. Nationals working in the private sector have the privilege of participating or exiting the individual government system on their employers’ health care plans.

  • Rules in Abu Dhabi

The Health Authority Abu Dhabi (HAAD) is the health service controller. The Thiqa framework protects Emiratis in Abu Dhabi.

Employers must stream their staff and dependents with medical treatment reasonably. The employee is composed of the partner and up to three children under 18, and the employer gets to pay just 50% of the bill to the employee, while the other 50% would pay for the sponsor/employee. If the employee has other dependants such as parents or a fourth child, they will have to pay the entire expenses.

The basic standard of ex-pat insurance coverage is specified in the Abu Dhabi Basic Plan given in the National Health Insurance Corporation (Daman).

  • Rules in Sharjah, Fujairah, Ras al Khaimah, Ajman, Umm Al Quwain

Ras Al Khaimah, Ajman, Umm al Quwain, Sharjah, and Fujairah, are monitored by the Department of Health in the UAE. However, some Emirates still get their own healthcare organizations established.

Employers in these Emirates are not legally obligated to protect workers and their dependents. Health insurance is given to workers and employees of Sharjah who serve in the administration.


The new health insurance scheme is a well-established and timely phase in the global health revolution in the Gulf. While its lack of homogeneity in the various conditions has been raised, it could be best to let time demonstrate which is the most successful before seeking to establish a single coherent framework for the whole nation.

The government of the UAE took a different step when it comes to the citizen’s safety. Insurance companies in the UAE also made it clear to buy medical insurance as instructed by the government otherwise heavy penalties will be imposed against the person.

The post Why is medical insurance mandatory in the UAE? appeared first on Evertise.

Usman Sabir