Definition
Daman, the National Health Insurance Company, is an Abu Dhabi health insurer that administers Thiqa, the government-funded programme for UAE nationals, and offers plans such as the Abu Dhabi Basic Plan and group cover for employers. Abu Dhabi employers must insure their non-national staff with an approved insurer.
What Daman is
Daman was incorporated by Emiri Decree in 2005 and describes itself as the national insurer, operating for more than 20 years. HR teams meet it in three roles: it administers Thiqa for UAE nationals, which the Department of Health regulates; it offers the Abu Dhabi Basic Plan for domestic workers and lower-income expatriates; and it sells group health plans to employers, including options for small businesses and cover in the northern emirates.
Daman is one insurer among several. The duty to insure employees comes from Abu Dhabi law, not from Daman, so an employer can meet it through any insurer the regulator approves.
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Abu Dhabi's mandatory health insurance rules
Under Law No. 23 of 2005 and its regulations, health insurance is mandatory for non-nationals who hold a work or residence visa issued in Abu Dhabi. The Department of Health (DoH), formerly the Health Authority Abu Dhabi, regulates the system. Employers must buy cover for every non-national they employ and for an employee's dependants holding an Abu Dhabi residence visa, although the employer's duty is limited to one spouse and up to three children under 18. A work permit, Emirates ID or residence permit cannot be issued or renewed without proof of cover.
Employees below an income threshold set by the regulations can be covered by the Basic or an Enhanced product, while those above it need an Enhanced product. The regulations make the employer or sponsor liable for the cost, and DoH changed some premium-sharing rules for the Basic Plan in 2016, so check the current DoH position before deducting anything from pay.
Health insurance in the other emirates
Abu Dhabi and Dubai made employer health cover mandatory first. From 1 January 2025, the federal Ministry of Human Resources and Emiratisation extended mandatory cover to private sector employees and domestic workers in Sharjah, Ajman, Umm Al Quwain, Ras Al Khaimah and Fujairah, and employers there must buy a policy before a residence permit is issued or renewed.
Common mistakes
Renewals cause most problems. A lapsed policy blocks visa processing, and DoH fines late renewals, which can now be paid through the TAMM platform. Other errors include assuming dependants are always the employee's cost, choosing a Basic Plan for someone whose salary requires an Enhanced product, and not ending cover properly when an employee leaves.
Official sources
- Department of Health Abu Dhabi: Healthcare Insurers Manual
- Department of Health Abu Dhabi: Late health insurance renewal fines on TAMM
- Daman (National Health Insurance Company)
Rules and rates change. Check the official source before you act on them.
Frequently asked questions
Daman is the National Health Insurance Company, an Abu Dhabi health insurer incorporated by Emiri Decree in 2005. It administers the Thiqa programme for UAE nationals and offers the Abu Dhabi Basic Plan, employer group plans and other health insurance products in the UAE.
Yes. Abu Dhabi law makes health insurance mandatory for non-nationals with an Abu Dhabi work or residence visa, and employers must buy cover for each non-national employee. Proof of insurance is needed before a work permit, Emirates ID or residence permit is issued or renewed.
No. Abu Dhabi law requires employers to provide health insurance but does not name a particular insurer. Daman is one provider, and it also administers Thiqa for UAE nationals. Employers can buy compliant cover from any insurer approved by the Department of Health.
Related terms
Part of the springhire HR glossary.
