Health card D-Day looms

Fines for firms not cov­er­ing staff

7 Days in Dubai - - NEWS -

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.

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