Complex Made Simple

You may have to pay AED500 penalty per month in Dubai from January

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

* 88 per cent of people already covered

* AED500 per month fine if remaining 12 per cent not covered by December 30, 2016


The deadline for getting mandatory insurance cover for employees and dependents in Dubai is fast approaching. Any failure to have yourself, your employees and your dependents insured will invite fines from year-end, according to the authorities.

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.


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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.


AED500 fine from December 31

Nearly 3.5 million people – 88 per cent of the total visa holders in Dubai – are already covered under the scheme. But there will not be any more extension for getting the mandatory insurance cover for the remaining 12 per cent after December 30.

Authorities earlier said that companies that fail to provide medical insurance could face fines of up to AED500,000 after the deadline.

Individual sponsors whose dependents are not given access to any health insurance will pay a penalty of AED500 every month. Dependents include spouses, children, maids, drivers, cooks and nannies.


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Essential package

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

These include two takaful and seven conventional insurance companies that provide an essential benefits package for those who earn less than AED4,000 a month.

The essential package starts from AED600 and it covers inpatient, outpatient, maternity and emergency services.