DUBAI // A new law requiring compulsory health insurance for all Dubai residents formally went into effect on Saturday.
Initiated by the Dubai Health Authority, the legislation was signed into law by Sheikh Mohammed bin Rashid, Vice President and Ruler of Dubai, in November.
“The law is effective 60 days after it is signed, so that is the actual action of the law itself, but the implementation plan is a two-and-a-half year implementation plan,” said Dr Haider Al Yousuf, director of health funding at the DHA.
Phase one of the scheme requires companies with 1,000 or more employees to provide their workers with health insurance by October.
In phase two, companies with 100 to 999 employees will have until the end of July 2015 to comply. Companies with fewer than 100 workers have until the end of June 2016 to provide coverage.
According to the law, companies are only required to cover the cost of health insurance for their employees and not the employees’ dependents. The cost of health coverage for the workers’ dependents will be borne by the worker.
The government will be responsible for providing health insurance for Emiratis.
Details for a plan for visitors staying in the emirate will be announced in the coming months.
Employers who fail to provide health insurance to their workers face hefty fines between Dh500 and Dh150,000.
Repeated breaches carry a maximum fine of Dh500,000.
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