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Workers compensation insurance

According to the UAE Labor Law, all employers in the UAE must provide compensation to their employees in case of injury or death due to work related reasons. In many UAE free zones, the basic workers compensation policy is mandatory. The employer will cover against the risk of exposure to work.

In some organizations, workers are at risk of accidents in the workplace. This may be due to the high risks in the nature of the work they do. Administrative staff may also experience workplace accidents. Therefore, the Corporation's employees are protected by the United Arab Emirates Federal Law No. 8 of 1980 and other related amendments.

Pursuant to Federal Law No. 8 of 1980 in the United Arab Emirates, employers are required to pay compensation to employees for an accident that occurred during work and during the work period.

Workers' compensation insurance extends to the following:

  1. Medical expenses
  2. Repatriation expenses
  3. Employers' responsibility.

1. Medical expenses

For work-related accidents, treatment is compensated in government hospitals or clinics. The amount of the payment depends on the insurance premiums paid by the employers.

2. Repatriation expenses

Repatriation expenses are expenses incurred in transporting the deceased body to its native land. Expenses are covered in workers' compensation insurance and may be considered higher amount limits based on premiums paid.

3. The responsibility of the business owner.

An employer can obtain protection for himself against a claim made by the employee in accordance with public law or Islamic law.

The amounts paid are applicable based on the estimated annual profit for the company's employees. This amount is adjustable at the end of the policy based on actual earnings.

There are many factors that are taken into account when estimating bonuses, such as the nature of the job, the location of the organization, the risks at work and other factors.

What does workers' compensation insurance cover?

Workers' compensation insurance is employer protection. It is designed to protect the business owner from paying obligations to employees.

The main benefits of workers' compensation insurance are as follows:
  1. Occupational death.
  2. Permanent total disability.
  3. Partial permanent disability.
  4. Temporary total disability.
  5. Medical expenses.

1. Work death

Compensation is limited to a twenty-four month bonus. This amount is limited and is subject to a minimum of 18,000 AED and a maximum of 35,000 AED.

The regional limits of this policy are only the United Arab Emirates and can be extended to the areas of work in which the organization participates, such as the Gulf Cooperation Council (GCC).

2. Permanent total disability

If the employee has been unable to work due to a work injury for more than 12 months, this will be considered a permanent total disability. Compensation is paid equivalent to work-related death.
This policy is included for work accidents and can be extended to include disability for work accidents.

Examples of permanent total disability are loss of arms, loss of eyes, complete paralysis, etc.

3. Partial permanent disability

Partial disability may be due to a work-related injury. Compensation is paid in a percentage of death, which is subject to injury.
The remuneration is paid according to Annex 2 of the UAE Labor Law or according to the medical report of the government doctor. It can extend to an occasional disability other than work.

Examples of permanent partial disability are loss of an eye, loss of a finger, injury to the leg, etc.

4. Temporary total disability

To compensate for total temporary disability paid by the employer. The period of time in which the employee cannot work is paid to compensate for lost wages. A total amount of wages will be paid during the first 6 and a half months of the next six months.

The amount will be paid until the worker has fully recovered from the injury or has been declared disabled or declared dead as appropriate.

5. Medical expenses

Expenses incurred by the injured employee for the treatment of injuries or illnesses, such as rehabilitation expenses, surgeries, x-rays, medications, diagnostic tests, purchase of prostheses, etc. For each accident, a specific amount is provided for each person.
Example 15,000 dirhams to 30,000 dirhams per person for each accident.

Expenses for the treatment of terminal illnesses and serious illnesses are not covered in compensation for this factor, and therefore medical expenses for serious illnesses or terminal illnesses are not covered. Final illness is a condition that causes death within 12 months in the medical profession.

Employers can also provide an additional reward to employees to cover workers' compensation insurance.

Coverage can be extended to include accidents within regional borders but outside of business hours, and this is in line with benefits paid under labor law.

In addition to the above workers 'compensation insurance coverage, employers can also add benefits to workers' compensation insurance, and employees can get benefits such as
  • 24-hour personal accident coverage, and this includes death or disability benefits that can extend to accidental injuries that did not occur during work hours or in the workplace.
  • Death or injury caused by heat stroke.
  • Injuries to employees while traveling to the workplace or from the workplace to the home. This trip is subject to the transfer provided by the employer.
  • Increase compensation for employee death.
An employer can take any other incidental medical expenses and life insurance benefits as part of the policy package. This is part of the general employee benefits program.

What is not covered by workers' compensation insurance?

Below are the main exceptions found in the UAE Workers' Compensation Insurance.

  • Natural death of the employee.
  • Suicide or attempted suicide of employee to claim benefits.
  • Any deliberate attempt at self-harm to claim insurance benefits.
  • Any illness or injury caused by drugs, alcohol, or other toxic substances.
  • Injury or death from exposure to nuclear radiation or electromagnetic fields.
  • Injury or death due to exposure of toxic mold to GMOs.
  • Death from transferable spongiform encephalopathy.
  • AIDS death or injury.
  • Any violation of the sanctions of the United Arab Emirates, the United Kingdom, the United Kingdom, the United Nations or the European Union.
  • Injury or death outside the territorial limits, regardless of the specific job.

Take away

Business owners should discuss with the insurance company the size of the company, the number of employees, and the total annual wages in AED. Employers must also inform the insurance advisor about important working conditions and the nature of work for risk analysis. Based on these aspects, the insurance advisors will offer you competitive and comprehensive insurance options.