Update on Mandatory Health Insurance in Dubai
Analysis
Employers are required to cover their employees under qualified health insurance plans, and any dependent family members and domestic workers must be provided with at least minimum basic coverage scheme by their sponsors.
It is expected the General Directorate of Residency and Foreigners Affairs in Dubai (GDRFA) may not issue or renew residence permits without valid proof of insurance, although no further clarification has been provided by the GDRFA as of yet.
What This Means for Employers and Foreign Nationals
Employers in Dubai will be required to arrange health insurance for employees immediately after their arrival in the UAE on employment entry permits or upon their immigration status change approval. Employers may therefore need to account for additional time taken to process the health insurance policy as it will add to the timeline for completing the post-arrival registration steps, like obtaining residence permit and Emirates ID card.
Non-compliance with the health insurance requirements may result in penalties, in addition to the rejection of immigration applications.