Dubai Health Authority has announced that any individual sponsors who fail to provide compliant medical insurance cover for any employees, dependents and even for themselves if required, by the Phase 3 deadline of 30th June will not be fined in 2016. In effect this gives people a further six months to put in place the mandatory plans, but there is a big catch.
Whilst the extension may be welcomed by many employers and sponsors may be leaving themselves open to a large financial liability if they do not put suitable cover in place.
Dr Haidar Al Yousuf, director of health funding at DHA, has pointed out that the right plans protect everyone and has been quoted as saying, “having your dependants insured will not only protect and save their lives in the case where they might need urgent medical intervention, it also protects the sponsor.” He has also stated. “ …however, if their employee was not insured and suddenly entered the ICU and required surgery, the employee will have to cover the medical costs, which can reach up to hundreds of thousands of Dirhams.”
The employer and/or sponsor is therefore liable for the cost of treatment if no suitable plan has been arranged. It would be foolish to take such a risk, particularly when the cost of insurance domestic staff is less than AED 700 a year. I would strongly urge people to get suitable cover in place rather than leave themselves at risk of having to pay potentially expensive bills.
See previous articles for more information about the deadlines, arranging company schemes, and how to insure domestic and lower paid staff.
For more information on the DHA medical insurance requirements, for a review of an existing scheme or to set up a new plan or scheme, as well as expert advice on any other financial planning issue please contact me at firstname.lastname@example.org