Complex Made Simple

WARNING: Get insurance in Dubai or pay AED500 fine every month

* Dubai’s DHA made it mandatory for every visa holder to have insurance

* 4.3 million visa holders in Dubai already covered

* AED500 per month fine if not covered by March 31, 2017

Only four days left to the deadline for getting mandatory health insurance cover for employees and dependents in Dubai.

Dubai Health Authority (DHA) has confirmed that the last day to avoid penalties will be March 31.

Any failure to have yourself, your employees and your dependents insured will invite fines starting from April 1.

The health watchdog says that 99 per cent – 4.3 million visa holders in Dubai – are already covered under the scheme.

Nonetheless, DHA reveals that that there are still sponsors and business owners who have not yet covered their employees and dependents.


AED500 fine from April 1

As per the new Executive Council resolution no (6), 2017, endorsed by Sheikh Hamdan Bin Mohammad bin Rashid Al Maktoum , Crown prince of Dubai and Chairman of the Dubai Executive Council, all employees and sponsors will have to pay fines if they fail to provide insurance employees by March 31, 2017.

Dubai residents who fail to secure mandatory health insurance cover will face a fine of AED500 per month, said Dr Haidar Al Yousuf, Director of Health Funding.

He also said that apart from the fine, no new visa will be granted and no existing visas renewed without health insurance.

“The fine will be imposed on the sponsors and the employers and not the employees. It will be added to the visa renewal and cancelation fees of the General Directorate of Residency and Foreigners Affairs,” Al Yousuf added.

Individual sponsors whose dependents are not given access to any health insurance will also have to pay fines. Dependents include spouses, children, maids, drivers, cooks and nannies.


Previous deadlines

The Dubai health Authority (DHA) had made it compulsory to have an insurance cover for every visa holder in the emirate under Health Insurance Law No. 11 of 2013 by June 30, 2016.

However, it offered a grace period of six months for companies with less than 100 employees and for dependents in the third and final phase of implementing the law.

Last year, DHA had said set December 31, 2016 as the final deadline but AMEinfo, citing an industry source, reported on December 29, that insurance companies have been told to accept application till April 2017 due to delays and massive number of applications.

In the first phase of implementing the Mandatory Health Insurance Scheme ISAHD (Bringing Happiness), companies with more than 1,000 staff were asked to comply with the law in 2014 and in the second phase in 2015, companies with 999 to 100 employees were asked to comply.


ALSO READ: Emirates Hospitals is teaming up with US-based InterSystems – but why?


Essential package

The DHA has approved 46 health insurance companies for providing the mandatory scheme to employers and sponsors.

These include a total of 12 insurance companies that provide an essential benefits package for those who earn less than AED4,000 a month.

The essential package ranges between AED550 and AED750 and it covers inpatient, outpatient, maternity and emergency services.

The 12 Companies that provide the essential benefits plan package include: Noor Takaful Insurance, Abu Dhabi National Insurance Company and Union Insurance, Axa Gulf Insurance, Takaful Emarat, Dar Al Takaful, Orient Insurance, Ras Al Khaima Insurance Company, Daman Health Insurance, Oman Insurance Company, Melife, National General Insurance.


ALSO READ: Dubai’s Noor Bank picks banks for dollar-denominated sukuk issue