UAE: Cheaper health insurance options to be introduced as coverage becomes mandatory

Rates in Sharjah and Northern Emirates are expected to be lower than the premiums offered in Dubai, say experts

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SM Ayaz Zakir

Published: Thu 3 Oct 2024, 6:00 AM

Last updated: Thu 3 Oct 2024, 8:25 PM

More affordable health insurance plans are expected to be introduced in Sharjah and the Northern Emirates as coverage becomes mandatory for all employees across the country. Rates could even be cheaper than those offered in Dubai and Abu Dhabi, experts told Khaleej Times.

The UAE-wide mandatory health insurance scheme will come into effect on January 1, 2025. All employees in Dubai and Abu Dhabi are already entitled to medical insurance coverage based on local regulations. For Sharjah and the Northern Emirates, however, it is the first time such a scheme will be rolled out.

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The new requirement is likely to lower the cost of premiums in these emirates, industry experts said.

“With just three months to go, Sharjah and the Northern Emirates are poised to introduce affordable basic medical insurance, mirroring Dubai’s model, while aiming to reduce employers’ costs,” said Nabil Shanawani, assistant general manager for life and medical division at Al Buhaira National Insurance in Sharjah.

Local government authorities are reviewing policies in Abu Dhabi and Dubai to develop a basic package that will give employers some flexibility to enhance benefits, if needed, Shanawani said during Insurance Meet 2024 organised by Thumbay Healthcare.

When the new system takes effect in 2025, private-sector employees and domestic workers no longer have to worry about health insurance coverage. For companies and employers, however, the obligation would mean additional expenses.

As they iron out details about insurance policies, authorities in these emirates seek to keep premiums lower than those in Dubai to cushion the financial impact on businesses, experts said.

“Medical insurance can be quite expensive, and higher costs could negatively impact the business environment in the region,” said Shanawani.

Dev Maitra, founder and MD of Savington International Insurance Brokers, is confident that rates will be more affordable compared to those in Dubai and Abu Dhabi because healthcare costs are relatively cheaper in Sharjah and the Northern Emirates.

“This is the first time they are introducing a mandatory scheme like this, and it will benefit people residing in the Northern Emirates,” said Maitra.

The Insurance Meet event, which saw the participation of government entities and insurance companies, served as a training platform ahead of the implementation of the nationwide scheme.

Access to affordable healthcare

While residents will have access to hospitals in Dubai and Abu Dhabi, there could be restrictions on premium healthcare networks, Maitra said. “Authorities are working to ensure that healthcare remains accessible and affordable across the country.”

The mandatory insurance scheme comes as a relief for residents in the Northern Emirates, many of whom lack health coverage.

“Value-based care is crucial for expat workers, and access to insurance will improve health outcomes, elevate healthcare services, and enhance the overall well-being in the community,” said Shanawani.

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SM Ayaz Zakir

Published: Thu 3 Oct 2024, 6:00 AM

Last updated: Thu 3 Oct 2024, 8:25 PM

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