Medical Insurance for Small Businesses in the UAE
Get the Best Insurance Plan that fits for Your Need
What is Small Business Health Insurance?
Why is Medical Insurance Essential for Small Businesses in the UAE?
The Dubai health insurance law (No.11 of 2013) mandates that all citizens and residents have medical insurance coverage. It is compulsory for employers to offer a minimum level of health coverage to all their employees. The law imposes stringent penalties on employers for violations. Hence, buying medical insurance for small businesses is one of the major responsibilities of business owners in the UAE.
Employees’ health and overall well-being are critical for small businesses with limited resources. A health insurance plan for a small business places a strong emphasis on employees’ health, boosts productivity, reduces absenteeism, minimizes workforce turnover, and fosters loyalty toward the organization.
Types of Medical Insurance for Small Businesses
Hospitalization Cover
This policy provides basic health coverage and covers all the services related to hospitalization. However, medical consultations and pharmacy bills are not covered under this plan.
Family Health Insurance
These plans cover the employees and their dependent family members in the UAE. Most policies offer coverage for up to three dependent family members.
Pre-Existing Diseases Cover
This business health insurance plan is available only to companies with a maximum of 25 employees. It offers limited coverage restricted to some pre-existing health conditions and chronic diseases.
Medical History Avoidance Cover
This is an exclusive group health insurance for small businesses in the UAE. Though the policy does not cover any of the pre-existing health conditions, it covers many chronic diseases and critical illnesses occurring after the policy date.
Organizational Medical Insurance
This plan offers affordable health insurance for small business employees. However, every claim has to be approved by the insurance company, and the network coverage is limited to a few healthcare service providers in the UAE.
Large Corporate Insurance
Companies employing at least 50 people and having worldwide operations can opt for large corporate policies to get optimal coverage
How Does Group Health Insurance Work for Small Companies?
Employee Strength
The small business should have at least one employee on the payroll. You can consult a qualified insurance advisor to get the best health insurance for small businesses in the UAE.
Medical Coverage
If a company is eligible for small business medical insurance, then all its employees and their dependent family members (who are eligible) can get medical coverage irrespective of their pre-existing health conditions
Employers in Dubai and Abu Dhabi should mandatorily provide basic health coverage to all their employees without deducting premiums from their salaries. However, it is optional for employers to provide coverage to the dependent family members of their employees.
There is no specific date in the year for small businesses to enrol in a health insurance plan. New employees (and their dependents) can be added to the plan as and when they join. The coverage for employees who leave the organization can be cancelled immediately. However, the premium is locked for the existing employees upon selecting a particular plan. The plan can be renewed, or a new plan can be selected at the end of the policy term.
Cost of Medical Insurance for a Small Business
The Essential Benefits Plan (EBP) offered by the government for employees drawing a salary of less than AED 4,000 per month costs around AED 600-700 per employee. This plan carries the lowest price and offers minimal benefits.
A DHA-approved healthcare plan for employees drawing a salary of more than AED 4,000 per month costs around AED 850-900 per employee. This plan also provides basic benefits but with a higher sum insured value. The network coverage is limited, and the plan typically covers only emergency hospitalization
Comprehensive health insurance plans with maximum benefits and coverage costs upward of AED 1,500 per employee.
How to Get Medical Insurance for Your Small Business?
1) Visit the official website of Prominent Insurance Brokers. Enter your details in the quote form for small company health insurance.
2) Once you provide all the required details in this form, click on the ‘Submit’ button.
3) One of our executives will soon get in touch with you. You will be guided by our team of expert advisors to buy the best health insurance for small companies in the UAE. You can make the payment online.
You can also click on the Whatsapp icon on this page and chat with our team members. You will be guided step-by-step to buy the policy online.
Benefits of Medical Insurance for Small Businesses
Cost Savings
The premiums of group health insurance plans are lower than those of individual plans. Lower risks due to larger coverage attract lower premiums and result in significant cost savings for small businesses
Regulatory Compliance
Providing medical coverage to employees enables small businesses to comply with mandatory legal regulations and avoid penalties
Attracting and Retaining Talent
Offering health insurance coverage to employees builds the reputation of small companies in the marketplace. They can easily attract and retain talented employees in a highly competitive environment.
Enhances Productivity
Health insurance offers a sense of security to employees. Better health boosts employee morale, reduces absenteeism, minimizes workforce turnover, and enhances the overall productivity of the organization.
Simplified Procedure
Group insurance typically involves less paperwork and documentation. The enrollment and the processing of claims are much faster than individual plans.
How to Choose the Right Health Insurance Plan for a Small Business?
Evaluate the requirements of your employees, given their age, income, health condition, and family size. While younger employees may prefer low-premium plans, those with families may require comprehensive coverage.
Identify the primary health insurance benefits you want to offer your employees. This may include hospitalization, maternity care, preventive care, critical illness coverage, and so on
Draw a clear budget of how much your organization can allocate towards premium and other related administrative costs.
List the major insurance providers and analyze the different types of plans available in the market.
Obtain multiple quotes and compare the premiums. Evaluate the key policy features such as coverage limit, scope, cost-sharing, exclusions, network providers, and additional benefits.
Select an insurer with a strong reputation, sound financial position, good customer service, and high claims settlement ratio.
Consult an insurance advisor with expertise in group health insurance to help you navigate the complexities and select the right product.
Difference Between Group Health Insurance and Individual Health Insurance
| Particulars | Group Health Insurance | Individual Health Insurance |
|---|---|---|
| Eligibility | A group of people such as the employees of an organization | Individuals and their family members |
| Coverage | Standardized benefits to all members | Benefits can be customized based on individual needs |
| Premiums | Affordable due to risk pooling and sharing of costs | Relatively expensive due to the higher burden on individuals |
| Availability of Cover | Until a member remains a part of the group | As long as the individual pays the premium |
| Plan Options | Limited | A wide variety of plans are available |
| Portability | Not available | Fully portable |
Frequently Asked Questions on Small Business Health Insurance
Is it mandatory to provide health insurance to employees?
Yes. Under Dubai health insurance laws, it is compulsory for employers to offer basic medical coverage to all their employees. The law imposes stringent penalties on employers for violations.
How can small businesses reduce their health insurance costs?
Small businesses can reduce their health insurance costs by understanding their employee needs, comparing plans, and negotiating with the insurers. They can also consult an insurance advisor to help them select an optimal plan for their budget.
What is the minimum coverage required by the Dubai Health Authority (DHA)?
The Dubai Health Authority requires all residents to have a minimum health insurance coverage of AED 150,000 per year.
Can I have two health insurance plans in the UAE?
Yes. The UAE residents can have more than one health insurance plan. The DHA permits policyholders to have multiple health insurance policies without any limit.
Is there a penalty for not having health insurance in the UAE?
Yes. Persons not having health insurance in Dubai are liable to pay a fine of AED 500 per month. The employer is responsible for paying the fine for not providing insurance to their employees. Sponsors are responsible for paying the fine if they do not insure their dependent family members.
What is the insurance law for employees in the UAE?
The Dubai health insurance laws make it mandatory for employers to provide basic health coverage to all their employees without deducting the premium amount from their salaries. If the employer does not cover the family members of employees, the concerned employee must purchase a separate health plan to cover his/her dependents.
Disclaimer: The health insurance policy or plan may have limitations, exclusions, and other terms and conditions that may affect coverage. It is important to carefully review the policy wording before making any decision.