AED 320 and Done? What the New Federal Health Insurance Actually Covers

From 1 January 2025, a basic health insurance mandate reached the Northern Emirates — Sharjah, Ajman, Umm Al Quwain, Ras Al Khaimah and Fujairah. The headline number, AED 320 a year, sounds almost too small to be real cover. So what does it actually buy, what doesn't it, and who has to act?

The rule requires employers to provide basic health insurance for private-sector employees and domestic workers when their residency permit is issued or renewed. In other words, if you're an employer or a sponsor in the Northern Emirates, the obligation is yours — it's a condition tied to the visa, not an optional perk.

The basic package is genuine cover, deliberately kept affordable through co-payments — the share you pay at the point of care. The broad shape looks like this:

• Inpatient care: around 20% co-payment, capped (commonly up to AED 500 per visit and AED 1,000 a year).
• Outpatient care: around 25% co-payment (commonly up to AED 100 per visit), with follow-ups inside seven days typically free.
• Medications: around 30% co-payment, subject to an annual cap (commonly AED 1,500).
• Chronic and pre-existing conditions: covered, without a waiting period.
• The policy is generally valid for two years.

The basic plan is a safety net, not a comprehensive package. Expect a defined hospital network, meaningful co-payments, and annual caps that a serious condition could reach. It won't match an employer's premium plan for choice of hospital, dental, optical or maternity extras. If you can afford to upgrade — or your family's needs are higher — the basic plan is the starting line, not the finish.