Mandatory Dubai Health Insurance Law and its Benefits
- Posted by HHS Lawyers and Legal Consultants
- On 13th August 2017
It is advisable to know more about the insurance that you have the right to hold according to the law and not just willingly seizing what’s in front of you. Reading on will provide you with the information that you need because the more you know, the better!
A Brief Overview
A couple of years ago in Dubai, providing a health insurance or medical card to employees of a company was not required at all. As the years went by, the law—Dubai Health Insurance Law No. 11 of 2013—was finally approved by His Highness Sheikh Mohammad Bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, and it commenced last February 2014. The implementation of this came with three phases, as per the Dubai Healthcare Authority website, having three different deadlines for each, wherein Phase 1 was on 31st of October 2014 for companies with 1,000 employees, Phase 2 on 31st of July 2015 for companies with 100 to 1000 employees, and the last one is Phase 3 that was on 30th of June 2016 for companies with up to 100 employees including spouses, other dependents, and domestic staff as well.
Having health insurance gives a regular employee a good benefit when it comes to seeking medical help. In view of the fact that this is a mandatory law, it has been ensured that there will be no visa that will be issued or renewed if the person involved does not have health insurance coverage showed by the company during its application processing or renewal. All employers are expected to have their employees be covered with health insurance that meets the requirements of the law, and with this, the Dubai Healthcare Authority (DHA) partnered with General Directorate of Residency and Foreigners Affairs (GDRFA) to make sure that each visa application and renewal has been verified to be covered with a health insurance. If the employers failed to provide the above-mentioned insurance, they will be fined between AED 500 and AED 150,000, and if this happens again, there will be a maximum fine of AE 500,000.
Cost of Dubai Health Insurance
The rough cost of this insurance that we are entitled to have under this law is simply around AED 500-700 per annum. With this, we are covered to a maximum of AED 150,000.
The Things You Should Know About Dubai Health Insurance
There are a couple of things you may or may not know yet about this subject; nevertheless, we have gathered information for your benefit. The following are the things you should know about Dubai’s health insurance:
1.) For employers
• Since this covers the nationals and expatriates in Dubai and spreads all over the said Emirate, including the development areas and free zones, everyone under a company’s sponsorship will receive a free health insurance. Regardless of an employee’s nationality, if they are employed by you, an insurance should come with the benefits that you offer, so be sure to check before letting them sign.
• Since this is mandated by law and is supposed to be free, the cost of the insurance is not supposed to be deducted from the salary of the employee.
• Every employed individual is expected to be provided with essential insurance package or Essential Benefits Plan (EBP) regardless of who the person is.
• Given that there could be biased in hiring single executives to avoid spending more on the insurance, making the workforce unbalance, the coverage for dependents is not required in Dubai.
• Insurance System for Advancing Healthcare in Dubai (ISAHD)’s website listed all providers of insurance in UAE that are currently approved by the government.
2.) For employees
• Those people who receive salaries below AED 4,000 have suitable cover as the premium amount is between AED 565 and AED 650. Blue collar workers (domestic help, maids, and nannies) are included in this as well.
• Some insurance companies offer a package that allows blue collar workers to extend their cover to their home country.
• The insurance covers normal check-ups in hospitals and clinics.
• This also covers inpatient treatments, such as surgeries.
• Lifestyle diseases such as heart disease, diabetes, hypertension won’t be covered in the first six months.
• Along with the ones above, referrals to specialists and surgical and pathological investigations are also included.
2.1) With dependents
• Though maternity coverage is present as above, if a woman is already pregnant by the time she gets the insurance, her pregnancy won’t be covered because this is for future emergencies and such. If she becomes pregnant after getting the insurance, then she is covered.
• A coverage for 30 days will be granted to a newborn baby under the mother’s health insurance, after that, the parents should acquire a cover for the baby.
What if You’re Not Covered with insurance?
There can still be instances wherein someone is not covered by a company, just like an employee’s dependents. It is advisable for people to obtain a health card. It is a low-cost medical treatment in public hospitals and clinics that are simply valid for a year but can be renewed online. Health card in Dubai merely needs some documents that include the following: passport copy, a cover letter from sponsor, visa application copy, two passport-sized photos, and completed application form that can be collected in any public hospital.
This law about health insurance is indeed an amazing benefit that shows how essential the employees are in a company. This is a good step taken by the government of Dubai, bringing expectations upon employees to have improvement towards the level of their productivity at work.