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.
There are only a few weeks to go until the Phase 3 deadline of 30th June but it seems that rather a lot of companies and individuals have still to take the required action and organise suitable medical insurance for their employees, their dependents or even themselves. This article will explain who needs to do what and how to do it.
I have written about the new Dubai Health Authority (DHA) rules several times but as the deadline for Phase 3 is fast approaching I thought it would be useful to clarify the requirements and explain how you can arrange suitable cover.
It has been announced that a new law will be coming into force in the emirate of Dubai stating that employers will have to provide medical insurance for their employees.
The new law was unveiled yesterday, although the full details have yet to be published. According to the Dubai Health Authority, it is to be rolled out within three years, in several phases, beginning in 2014.
A few weeks ago I wrote an article about medical insurance for individuals and families, so this is the companion piece focusing on schemes arranged by companies for their employees.
It was announced recently that it will be a legal requirement for Dubai based employers to provide medical insurance for their employees. As yet we have no details of the requirements or when this will be implemented, but it seems that this time it will really happen. There is little point in speculating, but I would guess that it will not be too different to the situation in Abu Dhabi.
The provision of good medical insurance for the employee and their family is viewed as a significant benefit and so can assist with the recruitment and retention of quality staff, along with other employee benefits like life assurance, income protection and pension schemes. Whilst some employers see the provision of cover for their staff merely as an expense, it has been proven that employee see this as a very valuable benefit and appreciate good quality cover. In addition quality cover reduces absenteeism and promotes healthier living and staff loyalty. Continue reading
This is a topic that arises again and again so it’s about time I wrote about it. This article is about plans for individuals and families and I will cover the options for employers and companies in a later piece. (If you are running a small company you should read on.)
There are many medical insurance providers operating in the UAE, each with several different plans, so how do you decide which is best for you? Company and individual plans are often quite different so someone else’s experience is often not relevant. It’s an almost impossible task even if you read the paperwork as there is the still the issue of servicing and claims settlement to consider. As a consumer you want the best value for money, but also the best cover for you and your family.
You may have seen some stories in the local press regarding financial problems at Green Crescent Insurance a provider of medical insurance plan in the UAE, based in Abu Dhabi. Following particularly poor financial performance the company has announced that it would hold a shareholder meeting in either November or December to decide whether to dissolve the company or continue operating on a reduced capital basis. The company has only been trading since 2009, but has posted losses ever year and a loss of Dh13.7 million (US$3.73m) in the first half of 2012.
Speaking to The National newspaper, Fareed Lutfi, the secretary general of Emirates Insurance Association, the body representing the interests of UAE insurers, said “There are too many companies and it’s a cut-throat industry. Many have been selling insurance too cheaply to compete, rather than looking at their bottom line.” The articles goes on to state that ‘Mr Lutfi estimates that global healthcare insurance premiums have been rising by an average of 15 to 20 per cent every year, squeezing margins to 2 to 3 per cent for even well-performing local insurers.’
It is certainly true that the costs of medical insurance rise annually, due to the increasing cost of medical care, but my experience is that in most cases this is by around 10%, not the higher figure claimed. I prefer to use International medical insurance providers who are financially secure and have a history of providing these types of plans as well as being efficient at dealing with claims.
The question now is what does Green Crescent’s announcement mean for their policyholders and other local providers?
Green Crescent is a provider of group medical insurance policies for a minimum of tem members and also offers group life and disability cover. Any company that has arranged cover will need to be aware that their cover may not be renewed at the next anniversary date and may want to start looking at alternatives. Even if the company continues trading, this must have shaken confidence and is a reason to look at alternative providers.
Whilst I do not have any figures, it seem likely that there are other local providers who may have difficulties, and when it comes to insurance companies, there are times when bigger really is better.
There are many insurance companies offering group medical cover in the UAE, but they each have a range of plans, many of which can be tailored to suit the needs of the client. For an HR Manager to find the best plan themselves is almost impossible as well as incredibly time consuming. Far better to use an experienced broker who deals with the providers on a daily basis and can source a plan to suit your requirements and budget.
It can take time to obtain personalised group quotes, whether for a new scheme or to replace existing cover, so it is rarely too early to start exploring the alternatives. Medical cover is perhaps the benefit most valued by employees so it pays to offer a good plan at the right price.
To review your group plan, or look at arranging a new scheme, please contact me on keren@holbornassets.com
On 7th February I appeared in my usual guest slot on the Nightline show on Dubai Eye 103.8FM.
This month we talked about the most popular topics in the letters and emails I receive from readers of my newspaper column, as well as medical insurance in the UAE and what you need to know.
Use the link below to listen or download the podcast of the show (40 minutes)
http://nightline.podomatic.com/player/web/2011-02-08T01_09_25-08_00
It is a lighthearted show, but contains useful information and facts presented in an easy listening way.
Please contact me if you have any queries related to these topics or any other issues.