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Low cost insurance system for employees comes into effect
Published: 17.10.2018 | Abu Dhabi, United Arab Emirates
Abu Dhabi: A new low cost insurance system providing coverage of Dh20,000 for employees officially came into effect on Monday, Policy costs Dh60 per worker and will provide coverage of Dh20,000. Announced back in June by the UAE Cabinet, the new policy replaces the compulsory Dh3,000 bank guarantee that companies had to spend for employees. As part of the new move, the Ministry of Human Resources and Emiratisation (MoHRE) will start refunding bank guarantees to employers worth up to Dh14 billion in total. UAE Low cost insurance | Meyer-Reumann
With the low cost insurance policy, employers can now buy insurance for their employees costing Dh60 annually per worker, with the insurance providing coverage for the employee’s end of service benefits, vacation allowance, overtime allowance, unpaid wages, worker’s return ticket and work related injuries.

For domestic workers, the insurance policy will cover the cost of replacing the worker in cases of health issues or the desire of the domestic worker to cancel the working relationship, in addition to unpaid wages and the worker’s financial benefits such as end-of-service and leave allowances and overtime allowance, in case they have been not be paid by the employer, as well as a return ticket.

Aisha Bel Harifa, assistant undersecretary for Domestic Worker Affairs, said that establishments registered with the ministry could buy the insurance at Tasheel centres once they submit the worker permit applications or complete the service online through the Tasheel e-service.

Bel Harifa said that employers could also still opt to use the Dh3,000 bank guarantee system as per the current rules and regulations if they decide to not use the low cost insurance policy.
 
Source: Gulf News - Society Back to News