COMPULSORY INSURANCE IN THE UAE AND THE FREE ZONES

UAE Law
1) Motor (auto) Liability Unlimited for bodily injury and a maximum of AED 250,000 for material damage. 2) Insurance Broker's professional liability Minimum limit of AED 1.5 million. 3) Medical Professional Insurance All medical professionals including dentists and pharmacists must have liability insurance occupational risks arising out of or due to practice of profession. 4) Professional Indemnity Insurance- Foreign Legal Consultants Foreign law firm must take out professional indemnity insurance at a recommended amount of cover of AED 20 million (this is only a recommended amount, and is usually arranged via the firm's international office). There are, as yet, no requirements for local lawyers to have PI cover. 5) Professional Indemnity Insurance- Foreign Auditing Company Foreign Auditing companies must also have PI cover issued by a local UAE insurance firm. However, no amount is recommended and this is not a requirement for local auditing companies. 6) Employee Health Insurance (Abu Dhabi Local Law) All employers have a legal obligation to arrange medical expenses insurance for their expatriate employees. (A draft law to the same effect has been passed in Dubai, which is enforced in practice)

Jebel Ali Free Zone Area ( JAFZA)

1) Insurance of Buildings Free Zone Clients are required to have their premises insured against fire and perils. The policy shall be sufficient to cover clearance and replacement costs of the structure, fixtures and fittings. Insurance of contents of any building shall be at the discretion of Clients. 2) Employees Insurance Jafza requires Clients to take out third party liability (or public liability) and workmens
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compensation, which is AED 500,000 for up to 19 employees and AED 1,000,000 for 20 employees or above. The cover is for any single occurrence, but there should be no limit in the policy as to the number of occurrences. Workmens compensation claims must include cover for injury / disability compensation and related medical expenses.

Dubai International Financial Centre (DIFC)

1) Strata Title Law A body corporate for a strata scheme must insure: (a) the buildings and any other improvements on the common property; and (b) any building divided by the plan. The policy of insurance must cover damage from fire (whether deliberate or accidental), storm, tempest, explosion, equipment malfunction, or other risks prescribed by the Regulations and costs incidental to the reinstatement or replacement of the buildings, including the cost of removing debris and the fees of architects and other professional advisers; and must provide for the reinstatement or repair of the buildings and improvements to their condition when new. A body corporate must also maintain public risk insurance (covering accidental death, personal injury and property damage) over the common property for an amount at least equal to a minimum prescribed by Regulation. 2) Employment Law An employer is required to obtain and maintain insurance cover for health and disability income, which shall provide for periodic payments in respect of lost income when the employee is unable to work due to illness or injury. COR 6.3.2 Before the Registrar grants registration as an auditor, an applicant must satisfy the Registrar that it has adequate professional indemnity insurance which provides cover in respect of work undertaken in the DIFC. .

Dubai Media/ Internet City

Every licensee shall take out and maintain insurance cover in respect of third party liability or public liability insurance and worker's compensation insurance in accordance with the requirements of the employee sponsorship agreement. A licensee's worker's compensation insurance shall include cover for every employment injury and/or disability and related medical expenses in accordance with the UAE Labour Law.

Dubai Airport Free Zone

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1) Insurance of Building Free Zone Clients must have their premises insured against fire and dangerous situations, as per the Licence Agreement; Insurance of 'contents' of any building shall be at the discretion of lesees. 2) Insurance of Employees The Free Zone Authority requires Licensees to take out Third Party Liability (or Public Liability) and Workmen's Compensation as per the Personnel Secondment Agreement. The value of cover required for Third Party Liability is AED 500,000 for up to 19 employees and AED 1,000,000 for 20 employees or above. The cover is for any single occurrence, but there should be no limit in the policy as to the number of occurrences. Workmen's compensation claim must include cover for injury/ disability compensation and related medical expenses.

Source : Clyde & Co.