Fragomen calls for adherence to health insurance regulation

Dubai Emirates Business

Fragomen, the world’s leading global corporate immigration services provider, has urged all employers in Dubai to adhere to the Dubai Health Authority’s (DHA) regulation, requiring all sponsors to enroll their employees for a mandatory medical coverage plan by June 30. Individuals who sponsor UAE residence permits for their family members and employees (e.g.: domestic helpers), have been given a further grace period, and now need to provide health insurance by the end of the year, according to the DHA’s announcement. Consequences of non-compliance include fines, in addition to the immigration applications being rejected.
Murtaza Khan, Partner at Fragomen said: “We are happy to see the Dubai Health Authority implementing the health insurance law, which helps better regulate the industry and strengthens Dubai’s position as a competitive employment destination for expatriate workers.
The impact of compulsory health insurance for all residents in The Emirate of Dubai will be felt by both, the individual and the corporate. The current deadline now requires mandatory health insurance (under at least a minimum basic coverage plan) for any dependent family members and domestic workers as well. As a result, all individuals in Dubai impacted by the program will now need to plan and be prepared for additional costs associated with the provision of health insurance.
The employer is responsible for bearing the cost of health insurance and this cannot be deducted from the employee’s salary. Although employers are not responsible to provide coverage for dependent family members of their employees, many companies will choose to do so as an additional benefit, and in order to remain competitive and attract the talent.”
Employers should also ensure that, with the final stage of implementation of the health insurance law, they are prepared to incorporate this within their immigration strategy. Similar to the Emirate of Abu Dhabi, the General Directorate of Residency and Foreigners Affairs in Dubai (GDRFA) is expected to monitor the new requirement and may not issue or renew residence permits without valid proof of adequate health insurance.
“Free zones such as the DMCC are already ahead of the curve and had implemented this requirement before the deadline. More broadly, whilst immigration applications are currently being approved without proof of health insurance, we expect this to end shortly after June 30,” concluded Khan.
It is worth mentioning that health insurance costs are already included in the processing fees for certain categories of visas, for example visit visas for tourism or for business. On the other hand, individuals travelling on visit visas on-arrival, including those issued to GCC residents are currently exempted from the medical insurance obligation.