Pay Dh600 insurance per dependent in Dubai

• Image Credit: Virendra Saklani/XPRESS
• Mandatory rule: Eisa Al Maidoor, Director-General of DHA and Dr Haidar Al Yousuf, DHA’s Director of Health Funding

Dubai: Dubai residents, whose employers do not provide family insurance, will soon have to pay a minimum of Dh600 towards each of their dependent’s mandatory health insurance, following a new law announced on November 26.

According to the Health Insurance Law Number 11 from 2013, the mandatory health insurance will apply to Emiratis and expatriates across the emirate, including free zones, from next year. It will be a pre-requisite for obtaining a new residence visa or renewal as employers and individual sponsors will have to submit evidence of insurance coverage with the visa application.

The law, to be rolled out in phases till 2016, will also apply to visitors to cover specific emergency services.

Announcing the provisions of law, Engr Eisa Al Haj Al Maidour, Director General of Dubai Health Authority (DHA) and Deputy Director General of Dubai Municipality, said the government will be responsible for covering Emiratis, while “employers will be responsible for their employees and sponsors for their sponsored individuals who do not work for an employer”.

The benefits are required to be not less than an “essential benefit package” whose value is around Dh600. “With his, every individual in Dubai will have access to quality healthcare. The mandatory health insurance will also help maintain the sustainability of the emirate’s healthcare services,” Al Maidour said.

Dr Haidar Al Yousuf, DHA’s Director of Health Funding, said details of the “essential benefit package” will be released soon. “For now, I can say that it covers basic emergency, primary, secondary, maternity and surgical procedures. It has been designed to ensure adequate access to health without burdening employers or sponsors,” said Al Yousuf.

He said employers must bear the cost of enrolling employees in an insurance scheme without any deductions to them. They must also ensure the validity of the coverage throughout their employment. In case an insurance cover expires before a visa is renewed, the employer has to bear the cost of healthcare, including emergency services.

He said the cost of the total package for employers will be around 1.5 per cent of the total salaries. Over two million uninsured people in Dubai, including blue collar workers and domestic help, are expected to benefit from the new law. Violations carry fines ranging from Dh500 to Dh150,000 in addition to other penalties. Repeat violations carry a penalty of up to Dh500,000. Violators could also face civil or criminal action.

Widely welcomed

Although details of the law are yet to be made public, its introduction has been welcomed by healthcare facilities and residents.

David Hedley, CEO of Mediclinic Middle East which runs the Mediclinic City and Welcare Hospitals, said: “This is a giant leap forward for Dubai as everyone will have access to affordable and quality healthcare. I congratulate the government on its bold step and I am confident the insurance system will be implemented successfully.”

Dr Ahyam Refaat, founder of healthcare consultant Accumed PM, said: “This long-awaited legislation is a step in the right direction. It will add to Dubai’s growth and public health and safety.”

Filipina receptionist Maria who works at a private company said: “This is good news because I am not insured and constantly live in the fear of falling sick. I cannot afford a good doctor here.”

Indian marketing executive D. Bhaskaran, who is also not insured, said: “I invariably fly to India to get treatment. I hope my employer provides me adequate cover.”

Lebanese resident Sam said: “I welcome the law although I will have to pay for my family’s insurance. My company provides insurance only to me. I will now have to factor the cost of covering my wife and two young children and hope that it will be less than what I am currently spending on their doctor visits.”

Price rise fears over health insurance in Dubai

• Image Credit: Supplied
• Rising: insurance companies will push up cost of premiums

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Dubai: The mandatory health insurance announced by Dubai Health Authority (DHA) last week has raised fears of a possible hike in prices of services and products across the board including hospitals, clinics, retail outlets and even restaurants in Dubai.

Dr Ayham Refaat, founder of insurance consultant Accumed PM, said one of the main challenges for the market when compulsory health insurance rolls out next year will be to maintain financial sustainability.

“Mandatory coverage will mean greater, even over-utilisation of healthcare services as more people will go to a doctor. It remains to be seen if hospitals and clinics will increase their charges and if insurance companies will push up their prices and premiums.”

He said insurance for all could impact the cost of living. “Health cover will impact the balance sheet of companies and businesses as they strive to go beyond the basic coverage to be competitive in the market. This in turn may push them to increase prices of their products or services.”

Sanjay Tolani, director of Goodwill Insurance Brokers, said: “We are waiting to see how reinsurers will react, but we can expect a rise in premiums. It’s a Catch 22 situation. There will be over-utilisation of the basic minimum package of Dh600, but costs will have to be recovered and the question will be how to spread the risk over the total population. The good news is there’s a bigger population to play with.”

The premise that insurance will push up the costs of products and services hinges on how established a business is. The smaller the enterprise, the bigger the chances of that happening.

A cafeteria owner in Karama, who did not want to be named, said: “I don’t know the details of the law yet, but from what I gather, even if I get a basic package of around Dh1,000 per employee, it will mean an additional expense of Dh30,000 (two-year cover) against the 15 visas of my staff. That’s a big amount.”

Asked if he would increase the prices on his menu, he said: “Who knows, inflation may also go up. We will have to wait and see.”

Manoj Kisani, director of Red Lounge, a chain of four beauty parlours in Dubai, whose 49 employees are already insured for Dh700 a year, said: “For us, insurance cost is a small percentage of the total operating costs which we are capable of meeting. But for companies that are on a very lean profit structure, it may be different. They will tend to pass on the additional costs to customers.”

Dr Ashok Kapoor, specialist cardiologist who owns the Getwell Medical Center in Bur Dubai, said there is a need for a uniform insurance tariff system. “Currently, tariffs vary widely from clinic to clinic and area to area. There is no reason why they should because medical tests, kits and manpower are the same everywhere. We need to arrive at uniform tariffs.”

Asked if he would hike prices at his clinic, he replied in the negative. He said employers will spend a little more to insure employees, but will benefit in the long run as productivity increases. “There is less absenteeism as the evaluation of sick leaves becomes more streamlined and transparent. We have around 60 staff, all of whom are already insured.”

David Hadley, CEO of Mediclinic Middle East, also ruled out a fee hike at the group’s City and Welcare Hospitals and its nine clinics in Dubai. “I can assure you we will not be increasing charges because of the new law. All our 2,500 employees are already covered and I can tell you health insurance has a lot of positives like reduced absenteeism and access to quality healthcare that offset costs.”

Danny, a textile salesman, feared his employer may not provide adequate cover. “What’s the use if I get a bare minimum insurance? Healthcare is so expensive that a single visit to the doctor can cost Dh1,000 with consultation fees, tests and medicines.”

An Indian distributor of a small enterprise said he will have to go beyond the minimum cover of Dh600 a year to be able to attract and retain good staff. “The extent of coverage will be a big factor in the coming days.”

Dubai enforces travel health insurance policy for visitors

The ruling will only be applicable starting early next year, residents applying for visit visas. 

Starting this month, visitors entering Dubai are being charged a minimum of Dh45 for a travel insurance certificate without which a visit visa is not being issued.

The move comes after the introduction of a recent government ruling that made health insurance compulsory for visitors and residents.

Though health officials from Dubai Health Authority (DHA), while announcing the new Health Insurance Law for Dubai last week, said that the ruling will only be applicable starting early next year, residents applying for visit visas toldKhaleej Times on Tuesday that the law had already been enforced.

Charges for an individual health policy period of up to 30 days single entry visas are Dh45; for 60 days the charges are Dh75; 90 days are Dh95 and for 180 days the charges are Dh185.

Visitors will only be covered for emergency medicine (accident and sickness) for upto Dh150,000. However, those aged between 70 and 84 years will have to pay a deductible of Dh2,000.

The travel insurance also covers for up to Dh7,500 in case of death in the UAE and for repatriation of remains.

Starting next year, all residents and visitors to Dubai will be required to have a compulsory health insurance cover to be provided by their employers or sponsors.

Officials said last week that resident or entry visas will not be processed unless an essential health insurance plan is submitted.

Roughly, two million people in the Emirate are expected to benefit from this scheme, including blue-collar workers, many of whom are currently without any basic health cover. Nearly a million people in Dubai are already insured.

While the health cover for the UAE nationals will be provided by the government, employers will be responsible for resident expatriate workers and their dependents. Those sponsoring their wives and children will have to buy individual health packages separately. Domestic workers will also have to be covered.

A basic health insurance package for residents will cover maternity, emergency, surgical procedures, etc but will not include procedures such as cosmetic surgeries.

Residents had a mixed reaction to the new ruling. While many said the extra cost added up to a big number, others said that the insurance cover would mean a peace of mind. “Life is unpredictable… and it is good to know that in case of any adverse event, we have medical cover,” said 34-year-old Mushtaq Amin, who is currently job hunting in Dubai.

Green light for mandatory health insurance for all Dubai workers

DUBAI // Employers will provide compulsory health insurance for every worker in Dubai under a major scheme approved on Tuesday.

The long-awaited scheme, which also covers employees’ spouses and children for as long as they live in the emirate, will come into effect next year.

It extends cover to domestic staff and visitors to Dubai.

“Health insurance is a form of security and it is very important for every individual to know that if he needs access to health care it is easily available,” said Essa Al Maidoor, director general of the Dubai Health Authority.

Valid health insurance will be a prerequisite to obtaining a residency visa.

The plan has been years in the making, originally due to be introduced four years ago, and is loosely based on the Abu Dhabi model.

Mr Al Maidoor said the Health Insurance Law was passed this week by Sheikh Mohammed bin Rashid, Vice President and Ruler of Dubai.

“We would like to thank His Highness Sheikh Mohammed and we are committed to fulfil his vision and ensure every individual knows that if he needs access to health care, it is easily accessible,” he said.

“The law is fundamental to ensure smooth delivery of basic health insurance to everyone living in the emirate, which roughly means more than 3 million people, including nationals and residents with Dubai visas.”

Mr Al Maidoor said the DHA had studied 12 of the best health insurance systems in the world.

It will take about three years for the population to be fully covered, with about a third now insured. The Government will be responsible for insuring UAE nationals.

Coverage will be rolled out in phases from next year until mid-2016, with all workers requiring at least the essential basic package.

Mr Al Maidoor said the average cost of providing the basic insurance would be about 1.5 per cent of an employee’s salary and employers would have the option to top up the basic package.

The plan to insure visitors to Dubai will be introduced in the later stages.

The law will ensure growing investment in the healthcare sector in Dubai and the UAE, and was the product of “very, very hard work” by those involved, Mr Al Maidoor said.

He said the DHA had wanted to ensure everything was ready before launching the scheme.

“Anything like this has to be done right and properly, without any negative impacts,” Mr Al Maidoor said. “Our role is to guarantee a proper, comprehensive service.”

Abu Dhabi, the only other emirate with mandatory insurance, has 98 per cent of its workers covered. Daman is the main insurer in the emirate.

All Dubai workers will be given insurance cards to replace their DHA cards, said Dr Haider Al Yousuf, director of health funding at the authority.

“For residents, the health insurance law sets forth the employer’s responsibility to secure insurance to cover the employees he sponsors,” Dr Al Yousuf said.

Only registered insurance companies with health insurance permits from the DHA would be able to provide insurance.

“This is to provide everyone with the basic right to health care in a well regulated model,” Dr Al Yousuf said.

“This stems from the Government’s fundamental goal to provide happiness and security to the people of the country.”

He said the law stipulated the roles and responsibilities of all stakeholders.

Failure by employers to provide insurance carries fines of between Dh500 and Dh150,000. Repeated breaches carry a maximum fine of Dh500,000.

Under the DHA’s original plan, employers would pay the Government between Dh500 and Dh800 a year for each employee, who would register with an outpatient clinic for basic healthcare services.

The plan was delayed partly because of the economic downturn. A new proposal, in 2011, cut out the Government, requiring companies to buy private health insurance for their staff.

As in Abu Dhabi, Dubai is operating an online clearing house for every claim.

UAE Exchange, AIG ink deal for gocash insurance

UAE Exchange has signed a partnership agreement with insurance major AIG to offer its prepaid travel card gocash customers a range of free insurance benefits such as personal accident benefits and free medical cover among other advantages. 

In a statement, UAE Exchange said that customers of gocash, a first-of-its-kind pre-paid travel card from UAE Exchange, can now travel with more peace of mind with the services it is offering in partnership with AIG.

Promoth Manghat, vice-president of Global Operations at UAE Exchange, said: “This kind of partnership for free insurance coverage is a first-of-its-kind arrangement in its class. UAE Exchange has once again set a standard and retained its position as a trendsetter in bringing the best to its customers. Towards this, we found the right partner in AIG. Both UAE Exchange and AIG carry high equity and trust amongst the customers. Such an offering is sure to receive a warm welcome. We take pride in partnering with AIG.”

Chandra Shekhar, head of Consumers at AIG Arabia, said: “AIG always looks for opportunities to add value and convenience to customers and in partnering with UAE Exchange, we are able to do this, as they share our values and approach. The gocash card is for the new generation of travellers and AIG understands their needs perfectly. Together with UAE Exchange, we can provide real protection for gocash cardholders, when they travel.”

In one go, gocash can be loaded with up to six currencies from a bouquet of 15. This hassle-free travel card comes from UAE Exchange, which has a principal membership with MasterCard. This enables the gocash cardholder to withdraw cash from over 1.9 million MasterCard-powered ATMs and make purchases from over 34.3 million merchant locations.

Homeowners insurance lacking in over 9 in 10 UAE homes

Recent findings from Zurich have revealed that the current trend is headed in a downward direction.

It took a massive fire in a Dubai residential tower, last year, to truly draw the attention of property owners in the United Arab Emirates to the importance of homeowners insurance, but it looks as though the climbing trend has come to an end and is starting to drop once more.

A recent study has shown that over 9 out of every 10 people don’t have their homes covered.

The homeowners insurance study was commissioned by Zurich and showed that 94 percent of the residents of the UAE are unprotected and are, therefore, risking considerable financial losses if they should ever experience unexpected perils such as a storm, flood, or fire that damages their property, structure, or possessions.

This research was conducted in October and showed that the vast majority of people don’t have homeowners insurance.

The study included the participation of 1,009 people who were residents of the UAE. Among them, 94 percent did not have contents or homeowners insurance to protect them against damage to their homes or possessions. The penetration of this coverage was at its lowest among tenants, when compared to actual property owners. Among renters, only a tiny 4 percent had coverage for the contents of their homes. Among the actual property owners, the penetration rate was closer to 22 percent.

According to experts in finance and homeowners insurance, one of the primary barriers to penetration of the coverage is in the misunderstandings and misconceptions that the residents of the UAE actually have about it. This causes them to fail to protect their homes as well as their appliances, furnishings, electronics, and other valuables.

Among the most common misconceptions regarding homeowners insurance and contents coverage is among tenants, who think that their landlords will be liable in the case of a fire or water damage that damages possessions. Many consumers also feel that they don’t have possessions that are valuable enough to insure. Beyond that, there is also a common belief that coverage is prohibitively expensive when, in truth, it is much less than people think.