Workers insurance policy explained
Workers in Dubai in the Business Bay area of Dubai. Image Credit: Clint Egbert/Gulf News

Dubai: Workers in the UAE are protected through stringent labour laws, designed to ensure the rights of employers and employees in various situations. As part of its efforts to protect worker’s rights, UAE’s authorities have implemented an insurance policy for workers. The insurance policy, called Taa-meen, was implemented by the Ministry of Human Resources and Emiratisation (MOHRE) on October 2018. This insurance scheme is separate from the health insurance provided by UAE’s employers. The insurance scheme protects the benefits and rights of the private sector employees and domestic helpers, in case the employer fails to fulfil their dues. It is mandatory for employers in the UAE to pay for each worker’s insurance, either on a yearly basis on once in two years, depending on the worker category.

What is the annual premium of the insurance policy for workers?

Insurance policies for private sector workers costs Dh120 and are valid for two years. For domestic workers, the cost of the policy is Dh60 and is valid for one year. The total sum assured is up to Dh20,000 for each insured worker. The total sum assured is the same for both domestic workers and for employees of companies registered with MOHRE.

Workers insurance policy
The insurance covers workers against non-payment of dues up to a maximum of Dh20,000. Image Credit: Clint Egbert/Gulf News

Coverage and limit of the policy

In case of a company’s bankruptcy or failure to pay the employees’ benefits, the policy will provide a maximum insurance coverage of Dh20,000 per employee against the following benefits in the workplace:

• end of service benefits

• vacation allowance

• overtime allowance

• unpaid wages

• return air ticket

• work injury, after it is determined by a court ruling.

For domestic workers, the policy covers the following expenses for the employer:

• the cost of worker’s replacement, in case of work discontinuation

• if the worker is medically unfit

• if the worker decides to terminate employment unilaterally

It also covers the following expenses for the worker:

• unpaid wages and entitlements

• service benefits

• unpaid vacations and overtime

• air fare to home country and work injuries’ compensations.

If the employer is unable to pay off workers’ financial dues, the insurance company will cover the dues up to Dh20,000. The coverage of the dues by the insurance company does not relieve the employers from their responsibilities. Employers would still have to pay back to the insurance company all dues, which the latter paid to the worker. If the employer does not repay the insurance company, MOHRE will suspend the employer’s file and freeze new work permits. It will also require the employer to provide Dh3,000 bank guarantee upon renewal of the existing work permits.

Workers insurance policy
Under the insurance scheme, it is mandatory for all UAE workers to be insured. Image Credit: Clint Egbert/Gulf News

How can employers acquire the insurance policies?

Insurance policies are issued immediately upon receipt of fees when applying for a work permit at Tasheel, or through the Tasheel e-service (for establishments that complete their own work permit applications). Insurance policies for domestic workers are issued upon receipt of fees when applying for a work permit through Tasheel or Tadbeer, the service centres dedicated to domestic workers employment.