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Group health insurance is an insurance product bought by the business owner to cover all the medical expenses of his/her employees. It is a hedging tool that will especially help small and medium enterprises from the risk of high employee hospital expenses. These are funds that otherwise could have been used for working capital requirements or expansion purposes. Enterprise owners can browse through the internet and find insurance companies and online insurance brokers who offer a large assortment of customized insurance products that will suit each enterprise's needs.

Mandatory Requirement

As per the Dubai health insurance law no 11 of 2013 it is mandatory to have group health insurance for companies working in Dubai. The objective is to create a well-funded health infrastructure for its residents to enjoy quality health care at affordable rates. As part of the mandatory medical insurance Dubai, the employer has to offer an annual premium anywhere between Dh500-Dh700. Failure to comply can result in fines between Dh500 and Dh150,000. In case of repeated breaches, the fine can go up to Dh 500,000.

Benefits of group health Insurance for the employers are as follows:

Cheaper than Individual Health Insurance - Group health insurance is by far cheaper than individual health insurance combined. The employer will pay far less premium with group insurance compared with individual insurance policies. Hence from the cost point of view, it is a win-win for the small business employer and his/her employees.

Takaful Insurance Options Available - Takaful insurance is another name for Islamic insurance for people who follow Muslim fate. These are well suited for individuals who wish to purchase insurance products that comply with both Islamic regulations and UAE law. Takaful operates on the principle of co-operative where the group pools in money to compensate for the group member's medical expenses.

Add-ons Available - If the employer wants to add certain extra cover to the existing group insurance he/she could very well do so. The level of customization is endless, this gives the employer the ability to develop health insurance that ticks all the right boxes.

Cashless Facility Available - Group health insurance gives both employers and employees a hassle-free hospital experience with its cashless service. In cashless facilities, the insurer settles the health bill on behalf of the insured. The insured does not have to pay the money upfront from his pocket, unlike the long, exhaustive, and extensive reimbursement process. Cashless facilities are usually available in-network hospitals, and most health insurance UAE offers extensive hospital networks throughout the kingdom.

No Waiting Period - In an organization, it is normal to hire and fire employees. With group health insurance the employer need not worry about the health insurance paper works and cost implications when the employee joins or leaves an organization. As soon as the employee joins the organization he/she becomes part of the group health insurance cover and vice versa.

No Mandatory Medical Insurance Check-up - For being part of the group health insurance plan the employee is not mandatory to undergo a medical check-up. But it has to be noted that he/she should list all the previous ailments while completing the employee paperwork at the time of employment. Do check with your respective HR department office for further information.