Dubai Scheme Imminent
Dubai is currently in the process of rolling out a compulsory Medical Insurance scheme, which was due to take effect on 1 July, but the enforcement date was pushed back (at almost the last minute) until the end of this year. What is not clear is whether the fine of AED500 per person per month, is also pushed back………
Regardless, under the Dubai scheme, all employers are being held responsible for making sure their employees are covered. As currently set out, this means employers must at the very least provide their employees with a basic insurance package – which must be Dubai Health Authority (DHA) compliant – with those who have monthly salaries under AED4,000 receiving adequate health cover.
The option to pay more, of course, remains. In April the DHA reported that around 75% of Dubai’s expatriates were at that point covered by Medical Insurance, leaving 25% to sign up in less than three months’ time, including the self-employed.
It should also be remembered that anyone employing a nanny and/or driver (etc) must insure their employee too!
According to published reports, there are may be up to 3.8 million people in total who live in Dubai under a so-called Dubai residence visa, and all of them will eventually have to come under the new mandatory insurance regime, according to “International Investment” magazine.
Insurers cannot deny cover, but can (and do) underwrite applications, resulting in many people finding premiums prohibitive; even for basic cover, if they have a less than perfect medical history. Their problem is that visas will not be granted without cover, nor existing ones renewed. One solution, especially for the over 45’s, is to contact Independent Financial Adviser Greg Pogonowski who has an exclusive group scheme that individuals can join, benefiting from group premium rates whilst at the same time getting the cover they must arrange sooner rather than later.
This is upon us now, so contact me if you need urgent help – no point in paying fines!