Health card D-Day looms
Fines for firms not covering staff
The issuing of large fines to companies that fail to introduce health insurance for their employees has been approved by the chairman of Dubai Executive Council.
HH Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai, yesterday issued Executive Council Resolution No (7) of 2016, which relates to fees and fines.
The move comes ahead of the June 2016 deadline for small firms with under 100 staff.
State news agency WAM reported that the move empowers Dubai Health Authority and Dubai Healthcare City to supervise the rollout of mandatory health insurance and issue fines of up to Dhs500,000 for those that fail to comply.
The health insurance law was first announced in 2013 and came into affect in February 2014.
By October 31, 2014, all firms with more than 1,000 employees had to provide insurance for their workers. Those with 100 to 999 staff had until July 2015 and smaller firms with under 100 workers have until June 2016.
“All spouses, dependents and domestic workers will also have to be covered by June 2016. They can start providing cover earlier, however, these dates are deadlines they must meet,” Dubai Health Authority said in 2014.
WAM reported that “violators who repeat an offence within a year of the date of the first fine will be charged double the fine up to a maximum of Dhs500,000”.
Authorities can take further action including the cancellation of business licences as a last resort, WAM added.
The minimum insurance plan firms have to sign up to costs about Dhs500-Dhs700 per employee. This must cover treatment worth up to Dhs150,000 per year.