All Employees in the UAE Need Job Loss Insurance from 2023: UAE Ministry
The Ministry of Human Resources and Emiratization (MoHRE) has already announced that once the program comes into force on January 1, 2023, purchasing an insurance plan against job loss would be required. So, the rule is in force for all the employees in the nation.
Employees of federal government agencies and private-sector businesses can enroll in the Unemployment Insurance Scheme for as little as Dh5 per month. In the tough context of job loss resulting from a non-disciplinary reason, the system provides a monetary reward for a set amount of time that cannot exceed three consecutive months per claim.
The Subscription Channels
• Insurance Pool's website (www.iloe.ae)
• Insurance pool's smart application
• Bank ATMs and kiosk machines
• Business service centers
• Money exchange companies
• du and Etisalat
Who All Offers Insurance?
The Dubai Insurance Company, a representative of the insurance pool made up of nine companies, will offer the scheme, which, according to the MoHRE, includes:
• Insurance companies in Dubai
• Abu Dhabi National Insurance Company
• Al-Ain Ahlia Insurance Company
• Emirates Insurance Company
• National General Insurance Company
• Orient Insurance
• Abu Dhabi National Takaful Company
• Oman Insurance Company
• Orient UNB Takaful Company
The Compensation & Premiums
Here, you can depend on two categories:
• In category 1, the basic salary is Dh16,000 or below with an insurance premium of Dh5 per month. The monthly compensation will not exceed Dh10,000.
• In category 2, the basic salary is above Dh16,000 with an insurance premium of Dh510 per month. The monthly compensation will not exceed Dh20,000.
How to Calculate Claims
The monthly compensation will equal 60% of the yearly average earnings for the most recent 12 months preceding the loss of employment. The maximum compensation for a single claim is three months in a row.
The aggregate claim payment shall not exceed 12 monthly benefits during the insurance period for the insured's full working life in the UAE (regardless of the number of claims submitted).
Are You Eligible?
The following prerequisites must be satisfied by the insured for them to be eligible for compensation, according to the insurance pool's website:
• A minimum subscription term is 12 months straight.
• The timely payment of all insurance premiums was required.
• Resignation should not be the reason for unemployment.
• The reason for the job termination must not have been disciplinary.
• The claim must be filed within 30 days of the job loss date.
• There shouldn't be any unresolved issues with the employee's absence from work.
• If there was fraud or dishonesty involved in the employee's claim, they would not be eligible for compensation.
• Non-peaceful labor strikes or stoppages shouldn't lead to the loss of jobs.
• The insured person must be present in the UAE legitimately.
• One of the following factors should not be the cause of the loss of employment:
1. Neither a civil disorder, an armed revolt, a riot, an act of a foreign adversary, war, invasion, revolution, civil war, military or usurping force, hostilities, or insurrection.
2. Pollutant discharge, a nuclear accident, or any other potentially dangerous effects of explosive nuclear equipment or a component of such equipment.
3. Terrorism-related chemical or biological pollution that either results from or fuels it.
4. The employer's facility was expropriated, nationalized, or had his or her money confiscated as a direct result of UAE government action, which caused insolvency.
5. Force majeure, as defined by the Civil Transactions Law, are unforeseeable situation.
There are many insurance companies in Dubai and the UAE with 100% commitment and loyalty to their customers. You will get this job loss insurance from reputed and reliable insurance companies in UAE without any effort from your side.
Policyhouse.com is one of the most renowned insurance companies in UAE, with professional expertise in the sector for many years. If you are looking for an insurance broker in Dubai or any other emirate, we are here to assist you. If you need more details, you can talk with our insurance experts and apply for the most suitable one. We are always here for you!
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