UAE ILOE insurance: What happens if you miss a payment?

Dubai: Have you forgotten to pay your UAE unemployment insurance premium? Missing a payment under the Involuntary Loss of Employment (ILOE) scheme does not mean your policy will be cancelled immediately. 

However, leaving your premiums unpaid for more than three months could result in cancellation, a Dh200 fine and the loss of your insurance benefits.

The ILOE scheme provides financial support to eligible employees in the UAE who lose their jobs for reasons other than resignation or disciplinary action. Subscribers can receive compensation for up to three months, provided they meet the scheme's eligibility requirements.

Here is what happens if you miss a payment, how long you have to settle outstanding premiums and what to do if your policy has been cancelled.

How long can you go without paying ILOE insurance?

According to the official ILOE website, employees must pay their insurance premiums according to the payment plan selected when subscribing to the scheme.

If an employee fails to pay their premiums for a period exceeding three months from the payment due date, their insurance policy will be cancelled.

This means missing a single payment does not automatically result in cancellation. However, subscribers should settle outstanding premiums as soon as possible to avoid penalties.

What is the fine for missing an ILOE payment?

Employees who fail to pay their insurance premiums for more than three months may face a Dh200 fine, in addition to having their insurance policy cancelled.

The fine is separate from the outstanding insurance premiums.

A Dh400 fine will be imposed if an employee fails to subscribe to the mandatory ILOE scheme within the specified deadline, unless the deadline is extended.

Can you subscribe again if your ILOE policy is cancelled?

According to the ILOE website, employees whose insurance certificates have been cancelled because of non-payment can subscribe again.

However, they must purchase a new insurance policy rather than reactivate the cancelled certificate.

This is particularly important for employees who have already completed several months of insurance coverage

Will you lose your unemployment insurance benefits?

If your insurance policy is cancelled, you will no longer be covered under that policy and cannot claim unemployment compensation through it.

To qualify for compensation, employees must have subscribed to the scheme for at least 12 consecutive months, alongside meeting other eligibility conditions.

If your policy is cancelled and you subscribe again, the 12-month continuous subscription period starts again under the new policy.

How to check and pay outstanding ILOE premiums

If you are unsure whether your insurance policy is active or whether you have missed a payment, you can check through the official ILOE website.

To check whether you have been issued a fine, visit MOHRE's ILOE Quick Pay service - eservices.mohre.gov.ae/Tasheelweb/Home/ILOEQuickPay