Input VAT on employee insurance and dependants are permitted only where it is a legal obligation for the employer as per local rules to provide the same. Example in Dubai Emirate employer is legally obligated to provide insurance for its employees but not the dependants hence input recovery is permitted only for premium on employees. Whereas in Emirate of Abu Dhabi employer has legal obligation to provide insurance for both employees and their family members so input recovery would be permitted on both. you need to check the local regulations in the Emirate the company is located in.

Thanks Mr. Sajith for prompt reply. So it is possible only if a company is registered in Abu Dhabi to claim input vat for all. A company registered in Dubai can't do so

In Abu Dhabi yes one can claim but there are restrictions on the number of family members for whom employer is legally obligated. So you need to comply with that as well. One needs to check the local regulations applicable for each Emirate before claiming the input of medical insurance.