The introduction of a compulsory health insurance scheme in Dubai for expatriates and their dependents could conservatively cost employers up to Dh1.5 billion in premiums annually. However, across the UAE, this figure could be as much as Dh4 billion, according to an international law firm Clyde & Co.
Abu Dhabi introduced a compulsory health insurance scheme in January and Dubai is expected to introduce a similar scheme in the near future. The move is generally seen as positive for expatriate employees and their dependents as well as providing many opportunities for the insurance industry.
Wayne Jones, a partner in Clyde & Co in the UAE and adviser on the development of the Abu Dhabi compulsory health insurance law said: "From a cost perspective, the responsibility appears to rest squarely on the shoulders of the employers — whether it is a big international firm or employers of domestic helpers. The scheme will provide huge boosts for the health insurance industry, which is a key and growing part of the UAE."
When exactly the scheme will be introduced in Dubai is uncertain. However, most sources say the legislation is in final stages and awaiting ratification. Some say the legislation will be announced in July, to come into effect by January 2007. Others suggest an announcement will not be made until September. The new system means that only UAE nationals will be covered by the old health card system.
Already companies are scrambling to take out health insurance policies. However, the marketing manager of Joie de Vivre International Insurance Brokerage,
Wahiduzzaman, said: "We are already busy. Employers are already taking out insurance. Large local companies tend to look at local insurers and the rates while multinational companies look at international plans and the benefits."
He also said that "a few companies are complaining" about the cost of insurance, especially given the cost of living in Dubai.
Jones has also cautioned that if three different schemes are introduced — in Abu Dhabi, Dubai and the Northern Emirates — with different requirements for the industry, there is a risk that this will lead to confusion and additional demands being placed on the medical insurance market.
"What the industry does not need at this stage in its development is a multiplicity of systems each having a range of different requirements for insurers, employers and policyholders which will confuse the market, potentially adding additional cost burdens onto the providers and, therefore, ultimately to employers," he said.A federal mandatory insurance scheme is being drafted to bring Abu Dhabi, Dubai and the Northern Emirates under the one scheme. Initially, only expatriates will be covered but when it becomes effective for nationals, the government is expected to cover the cost of their premiums. In Dubai, there is also talk that the government will create its own health insurance company. Source
Abu Dhabi introduced a compulsory health insurance scheme in January and Dubai is expected to introduce a similar scheme in the near future. The move is generally seen as positive for expatriate employees and their dependents as well as providing many opportunities for the insurance industry.
Wayne Jones, a partner in Clyde & Co in the UAE and adviser on the development of the Abu Dhabi compulsory health insurance law said: "From a cost perspective, the responsibility appears to rest squarely on the shoulders of the employers — whether it is a big international firm or employers of domestic helpers. The scheme will provide huge boosts for the health insurance industry, which is a key and growing part of the UAE."
When exactly the scheme will be introduced in Dubai is uncertain. However, most sources say the legislation is in final stages and awaiting ratification. Some say the legislation will be announced in July, to come into effect by January 2007. Others suggest an announcement will not be made until September. The new system means that only UAE nationals will be covered by the old health card system.
Already companies are scrambling to take out health insurance policies. However, the marketing manager of Joie de Vivre International Insurance Brokerage,
Wahiduzzaman, said: "We are already busy. Employers are already taking out insurance. Large local companies tend to look at local insurers and the rates while multinational companies look at international plans and the benefits."
He also said that "a few companies are complaining" about the cost of insurance, especially given the cost of living in Dubai.
Jones has also cautioned that if three different schemes are introduced — in Abu Dhabi, Dubai and the Northern Emirates — with different requirements for the industry, there is a risk that this will lead to confusion and additional demands being placed on the medical insurance market.
"What the industry does not need at this stage in its development is a multiplicity of systems each having a range of different requirements for insurers, employers and policyholders which will confuse the market, potentially adding additional cost burdens onto the providers and, therefore, ultimately to employers," he said.A federal mandatory insurance scheme is being drafted to bring Abu Dhabi, Dubai and the Northern Emirates under the one scheme. Initially, only expatriates will be covered but when it becomes effective for nationals, the government is expected to cover the cost of their premiums. In Dubai, there is also talk that the government will create its own health insurance company. Source
