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There’s an offer for employers in the UAE! Now they can purchase job-loss insurance on behalf of their staff. This is also an optional feature, according to Abdellatif Abuqurah, CEO of Dubai Insurance Company.

He said, "We are allowing the employers to buy the policy on behalf of their employees if they wish to. And I have to stress on ‘if they wish to’. The employer can buy the policy and deduct the value of the premium from their employees’ salaries, or they can decide to pay it on their behalf. Dubai Insurance has enrolled its employees in the scheme and will be footing the costs of the premiums on their behalf’’.

The insurance pool that consists of nine businesses and provides the Involuntary Loss of Employment (ILOE) scheme is represented by Dubai Insurance Company. Before June 30, 2023, employees must enroll in one of the two plans; otherwise, they risk a Dh400 fee. 

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Can Excluded Categories Register?

Currently, among the employee types exempt from the scheme are those working in free zones and households. When asked if they might join the scheme if they so desired, Abuqurah responded, "This is something we are working on. In consultation with the free zones, we are trying to find another similar arrangement that would be the same or customized in line with their needs and requirements’’. They are, however, excluded as of right now.  

The following groups are also exempt: temporary contract workers, investors (who own the businesses they work for), retirees who are qualified for a pension and started new employment, and minors under the age of 18.

Are There Better Perks for Employees Who Pay Higher Premiums?

A provision of the unemployment insurance law stipulates that the insured and the provider of the service may agree to negotiate additional benefits. Abuqurah said when questioned about it that they intended to leave room for the product to expand and improve over time. 

He said that "in the future, we will hopefully be able to design some additional coverage. I cannot give you any specific examples yet, but when it comes to additional benefits, it's something that we would like to keep open as an option for employers, employees, and the insurance pool."

The official said when asked if employees could enroll in the scheme with several insurance providers: "The insurance pool consists of nine companies across the UAE. Basically, when you subscribe, the risk is divided among the nine companies. So, you are actually subscribing to nine companies and not just one." 

A 12-Month Subscription is Required to Claim Benefits

The CEO of Dubai Insurance Company acknowledged that to be eligible for benefits, employees must have been members of the scheme for 12 straight months. Even if you changed jobs in the interim, Abuqurah explained, you would need to have a 12-month subscription period to be eligible for compensation. 

Why Was the Scheme Drafted?

The scheme, according to Abuqurah, attempts to stabilize the UAE labor market. It enables people to obtain a respectable sum of money to meet their basic demands.

It fosters some level of stability for companies as well as for employees. He also said that the ILOE insurance pool was consulted throughout the draft of the plan by the Ministry of Human Resources and Emiratization.

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