Dubai staff health cover moves into second phase
VISA ISSUANCE, RENEWAL LINKED TO HEALTH INSURANCE FROM AUGUST 1
Dubai-based companies with a staff strength of up to 999 will not be able to issue or renew residence visas without mandatory health insurance from August 1, the Dubai Health Authority announced yesterday.
The three-phase plan to cover all expatriates is in line with the Health Insurance Law passed by His Highness Shaikh Mohammad Bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai.
In Phase I that ended on October 31 companies with more than 1,000 employees had to obtain the mandatory cover, while Phase II that ends on July 31 will be for companies with 100 to 999 employees. In Phase III that will end on June 30 next year, companies with 100 or fewer employees must pay for health insurance.
Spouses, dependants and domestic workers are also covered in the programme. While it is not mandatory for companies to extend the cover to spouses and dependants, DHA is encouraging organisations to provide basic cover for these groups.
Humaid Mohammad Al Qutami, chairman of the DHA board, said: “In November 2013, the insured population in Dubai was 1.1 million. Since the phased introduction an additional 1.2 million are insured, bringing the insured population to 2.3 million.”
Stiff financial penalties, blacklisting and even non-renewal of trade licences are some of the punitive measures planned against companies that do not provide mandatory health insurance to employees, Gulf News has learnt.
Noting that Phase I of implementing the mandatory health insurance was completed on schedule, Dr Haidar Al Yousuf, director of Health Funding at Dubai Health Authority (DHA), told Gulf News that most companies in Phase II, which must be completed by July 31, have complied.
“We are in the process of drawing up a full list of penalties, which will be declared soon,” Dr Al Yousuf said. “To begin with, companies that do not comply will have to pay a fine per person, every month. The fine will definitely be higher than the basic insurance package. Eventually, we will block the renewal of existing visas, blacklist, or even block, trade licence renewal. Our sole objective is to get employees the health benefits that will accrue to them through the mandatory cover.”
The DHA has partnered with the General Directorate of Residency and Foreigners Affairs (GDRFA) to link mandatory health insurance to the issuance of new visas and renewal of existing visas with effect from August 1. This rule will apply to companies that have been covered up to Phase II of the programme.
Three phases
The DHA implemented the phased rollout of the mandatory health insurance scheme in February last year. This is in line with Health Insurance Law No 11 of 2013 decreed by His Highness Shaikh Mohammad Bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai.
Phase I that ended on October 31 last year, covered all companies with more than 1,000 employees. Phase II, that ends on July 31, covers companies with 100 to 999 employees. Phase III, that ends on June 30, 2016, covers companies with 100 or less employees. Finally, spouses, dependents and domestic workers will be brought under the insurance scheme. While it is not mandatory for companies to extend the health cover to spouses and dependants, DHA encourages employers to do so.
The aim is to ensure complete compliance so that expatriates in Dubai have access to essential health insurance. For Emiratis in Dubai, the DHA has introduced the Saada health insurance scheme. The Enaya health insurance scheme is already in place for government employees.
Humaid Mohammad Al Qutami, chairman of the DHA board, said: “When the law was introduced in November 2013, the insured population in Dubai was 1.1 million. Since the phased introduction, an additional 1.2 million people are insured, bringing the total insured population in Dubai to 2.3 million. Phase II will insure an additional 600,000 people.”
Dr Al Yousuf said employers can choose packages from 45 approved insurance companies that have Dubai Health Insurance Permits.
Stressing the multiple benefits of the programme, Dr Al Yousuf said it provides everyone in Dubai — citizens, residents and visitors — with universal access to health care.