Jelf Employee Benefits has warned companies to prepare for the next phases of the implementation of Dubai's health insurance laws.
While the next date for compliance requiring companies with 100-999 employees to ensure compliant coverage for all staff is 31 July 2015, the law has backdated fines.
Companies which grow and hire more staff, entering a different category of company size may find themselves at risk of fines.
Fines which are imposed will be backdated to when the breach occurred and the government in Dubai has said fines will be set at levels higher than any benefits which may occur through non-compliance.
All expats and visitors to Dubai must hold compliant insurance to get a visa and the product must be regulated by the Dubai Health Authority, and match mandatory benefits, including maternity provision and non-exclusion of pre-existing conditions.
Any dependents or spouse must also be covered by the employer or employee before a visa is granted, Dubai nationals will be covered by the government.
Specific obligations for employers include:
• Employers must bear all costs.
• There must be no self-funded schemes, all PMI policies must be fully insured.
• The insurance must be valid for the length of the employee's work period and the employer must verify this.
• Costs in medical emergencies for any of the employees if any of them has no health insurance must be borne by employers
• All employees must have health insurance cards
James Spencer, international corporate benefits manager for Jelf International says: "There are already a number of fully compliant iPMI providers on the market as well as many local companies providing cover, so employers should take care to select a health insurance provider that meets their own as well as their employees' requirements. Consideration needs to be given to whether you intend to meet or go beyond the basic legal requirements."
Spencer added: "The penalties for non-compliance include fines, the obvious inability to physically relocate staff in to the country and potentially the cessation of business practice, all of which are seriously disruptive to any company.
"However, whilst these measures may feel like red tape, they will also have benefits for the employer who will be better able to maintain a healthy and productive workforce. Whilst the deadlines impact those employers with largest workforces first, our advice is to ensure that the existing policy (irrespective of how many employees are covered) is fully compliant at the earliest opportunity."
