Dubai launch second phase of compulsory health insurance scheme

Hundreds of Dubai companies must provide health cover for staff by the end of this month.

DUBAI // Another 600,000 workers in Dubai will be provided with health insurance this month as the emirate moves into the second phase of its compulsory coverage scheme.

And the Dubai Health Authority on Tuesday announced that no visas will be issued or renewed for workers whose employers have not paid for their insurance.

The DHA said that it was working with the General Directorate of Residency and Foreigners Affairs to ensure that no work visas were issued to companies with more than 100 employees after the start of next month if insurance were not provided.

Companies with between 100 to 999 employees have until July 31.

“We are pleased to see that a lot of companies have already complied ahead of time and we encourage all those who have not to do before the deadline,” said Humaid Al Qatami, chairman of the DHA.

The mandatory insurance programme came into effect in February last year to give universal health care to workers.

Since then 1.2 million more people have been covered, for a total of 2.3 million.

“This shows that employers are responding very well to the scheme,” said Mr Al Qatami.

In phase one, all companies with 1,000 or more employees had until October 31 last year to comply. Companies with fewer than 100 workers have until the end of June next year.

“They can start providing cover earlier, however. These dates are deadlines they must meet,” said Mr Al Qatami.

Failure to do so can lead to fines of between Dh500 and Dh150,000, and Dh500,000 for repeat offences.

The law states companies are required only to cover the cost of insurance for employees, not workers’ dependants.

But Dr Haidar Al Yousuf, director of health funding at the DHA, urged companies to extend cover to families.

“The implementation of the mandatory health insurance law has multiple benefits,” Dr Al Yousuf said. “It provides everyone in Dubai – citizens, residents and visitors – with universal access to health care.

“It also helps to contribute to building a robust health system that is flexible and financially sustainable.

“It helps to promote healthcare investment and leads to positive competition between health players that benefits patients and helps boost medical tourism.”

Health insurance is also obligatory for those visiting Dubai.

In Abu Dhabi a law was passed in 2005 making insurance for workers compulsory.