DUBAI // Hundreds of employers could soon be hit with hefty fines as the final deadline day approaches for Dubai businesses and sponsors to ensure all workers and dependants have sufficient health insurance in place.
Although 99 per cent of the emirate - about 4.3 million people including dependants outside Dubai and those with Dubai visas living in other emirates - is now covered, the companies yet to insure workers have until Friday, March 31 to comply with the new regulations.
Dubai Health Insurance Law came into effect in January 2014, with the legal liability for every sponsor to provide at least the Essential Benefits Plan insurance package, which ranges from between Dh550 and Dh750 a year.
All employees and sponsors face paying fines of Dh500 for each month they fail to provide insurance to employees after the stated deadline.
Dr Haidar Al Yousuf, director of health funding at Dubai Health Authority, said that fines will be given to violating individuals and business starting from April 1.
“The fine will be imposed on the sponsors and the employers and not the employees,” he said.
“It will be added to the visa renewal and cancellation fees of the General Directorate of Residency and Foreigners Affairs.”
Coverage for visitors must also be provided by December 31, 2017, in line with the new resolution issued by Dubai Executive Council that stipulates requirements should include the provision of an essential health insurance plan approved by the DHA.
Workers receiving salaries of less than Dh4,000 can get insurance through any one of 12 DHA-approved companies providing the Essential Benefits Plan package.
Basic insurances covers maternity, emergency, medical tests, referrals and medication.
“Those wishing to seek health insurance should read the health insurance policy to learn about the clinics covered to benefit from the insurance as much as possible,” added Dr Al Yousuf.
The scheme has been gradually phased in since October 31, 2014. Larger companies with more than 1,000 employees were first to comply, followed by companies with between 100 and 999 workers nine months later. A deadline for phase three to cover all other Dubai residents was extended from June 30 until the end of 2016, due to delays caused by huge volumes of applications from more than 135,000 firms.
A further extension was offered until the end of March as the high influx of businesses applying for health insurance has made it difficult for insurance providers to keep up with the demand for first-time applicants.
nwebster@thenational.ae
