Companies wishing to undertake health insurance third party administration shall satisfy the following conditions:

1. Be a public or a private shareholding company or a limited liability company incorporated under the provisions of the Commercial Companies Law, or a branch of a company incorporated outside the UAE and has been practicing the business for a period of not less than two years, or a branch of a company incorporated and licensed in one of the financial free zones in the State.
    
2. Obtain a license from the IA in accordance with the provisions of these Instructions in addition to a license from the competent authority in the concerned Emirate.
    
3. Have a paid-up capital of at least five million UAE Dirhams.
    
4. The objectives and purposes of the company’s business shall be limited to health insurance third party administration as stipulated in these Instructions.
    
5. Obtain a professional indemnity insurance policy covering professional liability risks, provided that the sum insured thereof may not be less than AED (3,000,000) (Three Million Dirhams) and the excess amount may not be more than AED 100,000 (One Hundred Thousand Dirhams).
    
6. Comply with internationally acceptable professional standards in the practice of health insurance third party administration.
    
7. Submit a letter of bank guaranty in favor of the Chairman in his capacity, subject to the following conditions:
    
   1. To be issued by a bank operating in the State, according to the form designated by the IA;
   2. Be unconditional and unrestricted, payable on demand by the Authority at any time, and shall not be revoked except with the written approval of the IA;
   3. Be issued for the purpose of securing the settlement of transactions and fulfilling the obligations arising from practicing the activity towards insurance companies, medical service providers, customers and beneficiaries or to implement the decisions of IA;
   4. Its value may not be less than AED 1,000,000 (One Million Dirhams) for the head office and the branch of a company incorporated in the financial free zones or a branch of the company incorporated outside the State; and may not be less than AED 250,000 (Two Hundred Fifty Thousand Dirhams) for each branch affiliated thereto;
   5. The IA shall have the right to liquidate the letter of guaranty submitted by the Health Insurance TPA, in whole or in part, at any time to ensure that the Company fulfills its obligations due to the IA and those arising from practicing the activity.