Saturday, June 14, 2014

Medical Insurance is must for Dependents to Renew Iqama

Today, all the major newspapers of Saudi Arabia have published that the medical insurance is must for families to renew Iqama. It is the requirement of the Residency Law that every employee working in Saudi Arabia must have medical health insurance. If family members (dependents) of expatriates do not have insurance policy, Iqama will not be renewed. The decision is taken by the Jawazat after recommendation of the Council of Cooperative Health Insurance (CCHI). CCHI will send data automatically to the system of Ministry of Interior. You can check the status of health insurance and its expiry from this link “Check Expiry of Health Insurance through MOI

Burden of Cost for Health Insurance of Dependents
Director of the Jawazat IT department Col. Khaled Al-Saikhan said that there will be no iqama renewal for the expatriate or his family members if they don’t have health insurance. We can draw a conclusion from this statement made by the director of Jawazat that if your dependent does not have health insurance, even your iqama will not be renewed since he is your dependent. It also reminds me about news published some days ago about the burden of cost for health insurance of Dependents. We have shared it with you in this link “Medical Insurance for Family of Expatriates is to be paid by Employer”. Moreover, CCHI Secretary-General Abdullah Al-Shareef also made a statement that if employer does not pay the installment of health insurance of an employee or his family, he will be responsible for the fines related to this.

Will this law be complied with?
However, generally most of the expatriates are of the opinion that the burden of cost for health insurance of dependents will ultimately be transferred to the expatriates themselves. Most of the businesses will exploit the employees and ask them to pay for the health insurance premium of their family members. All of us know about the low negotiation power of the expatriates living in Saudi Arabia so ultimately amount will be going from the pocket of the expatriates.

What to do if your employer does not arrange for the Health Insurance of Dependents
  1. Medical Insurance will be made mandatory from 21 Jan, 2015. You can ask government relations officer of your company to renew it before 21 Jan 2015. In this way, you will be able to postpone the health insurance requirement for one or two years.
  2. In case if you have to arrange for the health insurance of your dependents, it costs around SR 1,000/- per head per annum if you avail a basic level of medical insurance from Saudi Arabia. In this insurance policy, some famous economical clinics are covered. It is good for middle class families living in Saudi Arabia. However, if you want to reduce this cost further, SR 400/- per head is charged by some companies for Medical Policy in Saudi Arabia. They are registered companies but have very few clinics or hospitals on their panel. They will not even provide you the list of hospitals on their panel. This insurance is good if you just want to renew Iqama.
  3. We have attached a list of approved insurance companies for your guidance. Please make sure, when you are paying to some agent for the medical insurance, this company is one of the registered and approved insurance companies in Saudi Arabia.


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