Question: I read the question and answer in your last column about changing employee benefits and have a question. My company provides medical insurance for 40 staff per law, but it has become very costly as a business expense and we would like to reduce the cover levels. Where do we stand on downgrading the medical insurance, or even just dropping the dental insurance part, when the plan is renewed? JC, Dubai
Answer: Companies in the UAE are required to provide medical insurance for their employees and those on Dubai trade licences, must comply with the rules of Dubai Health Authority (DHA).
In addition, some changes to requirements came into effect in January 2025. From this date, all employers in the UAE, in every emirate, became legally required to provide medical cover to all employees from the time of visa start or renewal. All plans, whether private or part of unified overage, known as Enaya, must provide mandated minimum benefits.
All policies for Dubai visa holders will now include dental benefits of up to Dh500 annually to upgraded packages but with a 30 per cent coinsurance payment. Many more comprehensive plans will include better coverage for dental issues but an employer is only legally obligated to provide cover at the minimum stated level. The exception to this will be if the contract of employment refers to the level of medical insurance that is provided as part of an agreed benefit of employment.
As stated in the previous column, such written agreements can be considered to be legally binding.
If there is not written agreement about the level of medical insurance to be provided to employees, an employer can downgrade the plans at renewal but would be advised to communicate this to staff well ahead of time as it is not likely to be well received.
Studies have shown that quality medical insurance is one of the top-rated benefits for staff in Dubai.
Q: I have spent the past 12 years in Riyadh, Saudi Arabia, but plan to move back to the UK later this year. I passed my motorcycle test a few years ago and want to buy a motorbike to get around when in the UK. I do not have a UK driving licence of any sort.
Will be able to use my Saudi bike licence in the UK? MN, Riyadh
A: Holders of Saudi licences are permitted to drive small vehicles on their licence for up to 12 months after becoming a UK resident. After this period, they must pass a full UK driving test for the relevant vehicle category. Generally, an International Driving Permit is also required by insurance companies.
Some driving licences can be “exchanged” in the UK, but Saudi Arabia is not included on the UK’s list of designated countries eligible for a direct exchange without retesting.
Upon becoming resident – typically from the day of arrival for UK passport holders – MN will need to apply for a provisional motorcycle licence, even to use his Saudi licence. He will only be permitted to ride the category of motorbike covered by both licences, as clarified by the insurance provider.
As a Saudi licence cannot be exchanged, MN will need to apply to take a full UK motorcycle test within 12 months. This involves not only a theory test but also compulsory basic training and a two-part practical test.
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Legal reforms in the UAE have paved the way for residents to draw up wills based on laws in their home countries. AP -
The changes to inheritance rules were part of wider changes to personal status laws aimed to encourage more people to lay down roots in the Emirates and to bolster foreign investment. EPA -
A Dubai court set up to examine inheritance disputes involving both Muslims and non-Muslims was established in September and has already dealt with 16 cases involving assets of close to Dh1 billion ($272 million). Dubai Courts. -
The court's verdicts are issued by a panel made up of a judge from the court of first instance, another from the appeals court and a third from the court of cessation. Bloomberg -
Judge Mohammed Al Shamsi, president of the Dubai Inheritance Court, urged people to seek legal advice before drafting wills and to make sure their intent is clear to avoid problems arising at a later stage. Salam Al Amir
Q: My brother passed away in the UAE in September. He did not have any dependents and I am his only close relative. He left a car which is still registered under his name and it seems there are some fines outstanding.
I am the one who is inheriting the few things he had and I want to register the car in my name. Will I need to pay the fines before I do anything? SB, Dubai
A: My condolences for your loss. The law, throughout the UAE, states that all vehicle fines must be cleared before any change of vehicle ownership. This applies no matter the circumstances, although I am aware of cases where application to the police in the relevant emirate has resulted in them being waived. It is best to assume that they must be paid as standard.
The fines must be settled through one of several channels before requesting the transfer of ownership. These include the Dubai Police website for online payment, payment counters at police stations, the RTA mobile app, or an RTA office.
Once fines have been cleared, SB will need to obtain documentation from Dubai Courts, including a death certificate and court letter, then present these documents at an RTA office or partner centres to change ownership of the vehicle.
Contact Keren Bobker at keren@holbornassets.com or at www.financialuae.com
The advice provided in our columns does not constitute legal advice and is provided for information only
