By Parag Deulgaonkar
Effective planning should be put in place to avoid gaps in cover, says GWM
Dubai businesses are likely to face fines if they fail to comply with the looming renewal deadline on mandatory health insurance, Guardian Wealth Management (GWM) has warned.
The Dubai Health Authority (DHA) made it mandatory on June 30, 2016, for business-owners to introduce health insurance for their employees.
With the deadline to renew fast approaching for many businesses, the consultancy firm said effective planning should be put in place to avoid gaps in cover and the risk of fines or worse, visa and licence restrictions.
Neil Stewart, corporate solutions advisor at Guardian Wealth Management UAE, said: “The DHA means business when it comes to mandatory company health insurance.
“Last year it was important for businesses just to get the insurance for employees by deadline. One-year on and business-owners have more time to plan effectively and put in place the most appropriate cover. We can help companies ascertain what cover is best suited to their employee base, whilst ensuring they avoid being penalised.”
The company has urged business-owners to follow a 5-point strategy when renewing insurance policy which includes understanding the rules, shopping for the right policy, outlining responsibilities of employees, be clear of the terms and conditions and to know their timeline.
The DHA introduced a three-stage legislation for mandatory health insurance from 2014 to 2016 to ensure all expatriate workers were covered, regardless of the size of company they worked for.
The rules set-out stipulations such as a minimum level of health cover that needs to be met. It also specified that the cost of the medical cover cannot be passed to employees, whether directly or as a salary deduction.For all the latest health tips & news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.