The UAE has introduced a major new insurance product for private sector employees and domestic workers.
With coverage available from AED320 ($87) per year it aims to make insurance affordable and boost the healthcare options for workers in the UAE.
The Ministry of Human Resources and Emiratisation (MoHRE) launched the basic health insurance package for private sector employees and domestic workers across the UAE who are not currently covered by any insurance, as part of the Health Insurance Scheme approved by the UAE Cabinet.
The initiative is launched in collaboration with the Federal Authority for Identity, Citizenship, Customs, and Port Security, and the Ministry of Health and Prevention, and in coordination with a number of insurance companies.
Based on the Cabinet Decision issued in that regard, the Health Insurance Scheme will extend coverage to private sector workers in Sharjah, Ajman, Umm Al Qaiwain, Ras Al Khaimah, and Fujairah starting from January 1, 2025, thus ensuring that 100 per cent of workers in the UAE are covered by insurance.
The system is already implemented on a mandatory basis in Abu Dhabi and Dubai, covering employees in private companies and domestic workers.
Employers are required to purchase the new health insurance policy as a prerequisite for issuing or renewing residency permits.
However, the mandate does not apply to employees with work permits issued before January 1, 2024 that remain valid, and will only become mandatory when their residency permits are due for renewal.
The newly introduced insurance package targeting private sector workers and domestic workers is available through the DubaiCare Network, and stands out for its competitive price with nominal treatment costs.
This reduces the financial burden on employers, where the cost associated with this policy is significantly lower than the treatment expenses employers might otherwise bear for their workers, which significantly cuts operational costs.
The policy is valid for two years, and the second-year premium can be refunded if the visa is cancelled. The basic insurance package costs AED320 ($87) per year, with no waiting period for workers suffering from chronic illnesses.
It covers individuals aged 1 to 64 years, while those over this age must complete a medical disclosure form and attach recent medical reports.
The package covers treatment expenses with a 20 per cent co-payment for inpatient care (ie patients hospitalised for medical treatment or surgeries). The insured pays a maximum of AED500 ($136) per visit with an annual cap of AED1,000 ($272), including medications. Beyond these limits, the insurance company covers 100 per cent of treatment costs.
As for outpatient care (patients requiring medical visits, diagnostic tests, or minor procedures that do not necessitate a hospital stay), the co-payment is 25 per cent, where the insured pays a maximum of AED100 ($27) per visit.
No co-payment is required for follow-up visits for the same condition within seven days, while co-payments for medications are capped at 30 per cent, with an annual cap of AED1,500 ($408).
The network includes seven hospitals, 46 clinics and medical centres, and 45 pharmacies. Dependents from the worker’s family can access the same benefits and pricing, as specified in the insurance policy.
Starting from January 1 2025, employers can either purchase the new insurance package via the DubaiCare Network, or any other product from accredited insurance companies through various channels, including the Insurance Pool website and smart application, as well as business service centres across the country.
