Workmen Compensation Insurance in UAE
Workplace injuries can lead to financial strain, legal complications, and reputational risks. Such scenarios are covered by Workers Compensation Insurance, which is a mandatory coverage in the UAE. It financially protects both employers and employees in such cases. With this coverage, injured ...read more
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What is Workers Compensation Insurance?
Workmen's Compensation Insurance offers financial protection to employees who suffer from work-related injuries, accidents, or illnesses. In the UAE, this insurance is required by Federal Law No. 8 of 1980 and is mandatory for employers to provide coverage for their employees.
It covers a range of work-related incidents. The list includes injuries, illnesses, and even death resulting from an accident on the job. This form of insurance is particularly important for businesses operating in high-risk industries like construction, manufacturing, and transportation.
Who Needs Workmen’s Compensation?
A workmen compensation policy is required for all employers who hire workers. Here are just a few industries where this type of insurance is beneficial —
- Construction
- Manufacturing
- Warehousing
- Logistics
- Hospitality
- Cleaning services
Even white-collar offices benefit from this coverage to protect administrative staff.
Key Features of Workmen Compensation Insurance in UAE
With workmen’s cover, employers can focus on running their businesses without worrying about workplace-related liabilities. Employees, meanwhile, are assured of financial support in case of unfortunate events at work.
Here are the key benefits of a typical workmen compensation insurance policy —
- Medical Expenses: Covers the medical costs associated with treatment, hospitalisation, and surgeries required due to work-related injuries
- Wage Replacement: Provides partial wage replacement if an employee is unable to work due to their injuries
- Rehabilitation and Retraining: Covers the costs for occupational therapy and retraining in case the employee is unable to return to their previous job
- Death Benefits: Offers compensation to the family members of workers who lose their lives due to work-related accidents
- Legal Compliance: Ensures that businesses meet the legal requirements in the UAE, protecting them from potential fines and legal disputes
Benefits of Workers Compensation Coverage
Workmen’s compensation insurance offers key benefits to both employees and employers. These benefits include —
For Employees
Workman compensation insurance provides several benefits for employees, ensuring their safety and financial stability.
- Financial Protection: Employees are shielded from financial loss due to work-related injuries or illnesses. This holds true even if their employer faces financial difficulties.
- Peace of Mind: Knowing that they are covered by this insurance, employees can work with confidence. They can focus on their tasks without worrying about the consequences of a workplace accident.
- Improved Well-Being: The policy ensures that employees receive the necessary medical attention, rehabilitation, and financial support to recover and return to work.
For Employers
For employers, investing in workmen compensation insurance UAE offers the following benefits —
- Legal Compliance: The cover ensures that the business adheres to local labour laws, avoiding penalties for non-compliance.
- Protection from Lawsuits: By providing this insurance, employers protect themselves from the potential of costly lawsuits from injured employees.
- Employee Loyalty: Workers compensation shows employees that the employer cares about their well-being, fostering loyalty and trust.
- Cost Management: By controlling workplace risks and investing in insurance, employers can better manage operational costs and safeguard their assets.
How Much Does Workers Compensation Insurance Cost?
The workers compensation insurance cost depends on various factors, such as the —
- Size of the business
- Industry
- Number of employees
- Level of coverage required
On average, its price can range significantly based on these variables. To help businesses estimate the cost, many insurers provide a workers compensation insurance cost calculator. This tool helps businesses get an estimated quote based on their specific needs and circumstances.
Click here to connect with us and get an estimated cost for your business!
Workmen Compensation Coverage and Exclusions
Workmen Compensation Insurance UAE provides vital coverage for both employers and employees in case of workplace accidents or incidents.
Here’s what’s included and what’s not —
Inclusions in Workers Compensation Insurance
| Coverage | Details |
|---|---|
| ✅Occupational Death |
|
| ✅Permanent Total Disability | Provides a lump sum compensation if an employee becomes permanently disabled and unable to work due to severe injuries (e.g. loss of both eyes, limbs, or paralysis) |
| ✅Permanent Partial Disability | Covers compensation for the reduced ability to work due to partial disabilities such as the loss of one eye or a finger |
| ✅Temporary Total Disability |
|
| ✅Medical Expenses | Covers medical costs related to the treatment of injuries or diseases caused by work, including hospital bills, surgeries, diagnostic tests, medications, rehabilitation, and prosthetic devices |
| ✅Repatriation Expenses | If an employee dies due to a work-related incident, the insurance covers the cost of repatriating their remains back to their home country |
| ✅24-hour Personal Accident Cover | Extended coverage for accidents that happen outside working hours or the workplace, ensuring benefits for accidental death or disability at any time (within the UAE) |
Exclusions in Workers Compensation Insurance
While Workmen's Compensation Insurance offers extensive coverage, there are certain exclusions —
| Exclusion | Details |
|---|---|
| ❌Suicide | Death resulting from suicide is not covered under the policy |
| ❌Self-injury | Injuries caused intentionally by the employee are excluded from coverage |
| ❌War and Political Risks | Injuries or death arising from war, civil unrest, or political conflicts are not covered |
| ❌Substance Abuse | Injuries or diseases resulting from alcohol or drug abuse are excluded |
| ❌Exposure to Hazardous Substances | Death or injury caused by exposure to radiation, harmful molds, genetically modified organisms (GMOs), or certain infectious diseases (e.g., mad cow disease) is not covered |
| ❌Sanctions Violations | Does not cover claims arising from actions that violate international sanctions (e.g., those imposed by the UAE, US, EU, or UN) |
| ❌Incidents Outside the Work Scope | Work-related injuries or deaths that occur outside the predetermined work area or duties are not covered |
| Important‼️ |
|---|
|
The inclusions, exclusions, and coverage amounts vary as per the policy and the provider. We recommend you thoroughly check your workmen compensation policy before making the purchase. |
Top Workmen Compensation Insurance Policy Providers in UAE
Here are the best workmen compensation insurance policy providers in the UAE that you can choose for your company —
- Al Buhaira National Insurance
- AIG Business Insurance
- Union Insurance
- Al Wathba Insurance
- Insurance House Business Insurance
- Abu Dhabi National Takaful Insurance
- Watania Takaful Business Insurance
- RAK Business Insurance
Eligibility Criteria to Apply for Workmen's Compensation Insurance
Workers Compensation Insurance is mandatory for all Free Zone companies in the UAE. Employers must ensure that all employees are covered under this policy as per the legal requirements. The policy covers all employees in the UAE, including full-time, part-time, temporary, and contract workers.
Documents Required to File a Claim
When filing a claim, you need the following documents —
- Trade licence
- Company profile or business activity description
- Employee list with job titles and nationalities
- Payroll or WPS report
- Valid Emirates ID and contact details
- Original medical bills/receipts for treatment
- Any other relevant documents as requested by the insurers
Why Should You Buy Workers Compensation Insurance Through Policybazaar.ae?
Platforms like Policybazaar.ae allow businesses to find tailored insurance policies that suit their specific needs. With us, you get the following perks —
- Diverse Coverage Options: You can explore a wide range of business insurance products, including workmen compensation, property insurance, and group health plans
- Expert Claims Support: Guidance available throughout the claims process, ensuring that your employees receive the benefits they deserve
- Top Insurers: Compare plans from leading insurance providers to find the best coverage at competitive prices
- Competitive Quotations: Get quotes that ensure fair pricing and comprehensive protection for your employees
How to Choose the Right Policy?
- Compare quotes from at least three insurers
- Check the scope of coverage and limits
- Look for added services: claim assistance, legal advisory, wellness programs
- Evaluate insurer’s reputation and claim settlement record
Tips for Getting Low-Cost Workmen's Compensation Insurance
Here are some tips to get value-for-money workmen's compensation insurance —
- Start Early: Avoid last-minute purchases. Take time to compare policies and ensure you get the right coverage for the best price.
- Seek Expert Help: Consult insurance advisors who can help find the best policy at no extra cost. Experts can ensure you don’t overpay for unnecessary coverage.
- Focus on Coverage, Not Just Price: While budget is important, don’t sacrifice essential coverage just to save money. A cheap policy might lead to insufficient coverage when you need it the most.
Final Thoughts
Workmen's Compensation Insurance is more than a legal formality — it's a vital instrument to protect your business and care for your workforce. Whether you're running a construction firm or a corporate office, this coverage ensures you're financially and legally protected when the unexpected happens.
Don’t wait for an accident to remind you of its importance.
Secure your team. Secure your business.
Last Updated At - 21 Jan 2026
FAQs About Workers Compensation Insurance
Q1. What does workers' compensation insurance cover?
Workmen compensation insurance covers work-related injuries and the death of employees during working hours. It provides lost wages, repatriation expenses, medical, and disability compensation.
Q2. Is Workmen's Compensation Insurance mandatory for businesses in the UAE?
Yes, the UAE government requires this insurance. This is to ensure fair treatment of employees, promote safer workplaces, and reduce legal disputes between employers and workers.
Q3. Who is eligible for the WC policy?
Employees working in a legally registered company are eligible for workman compensation insurance. It includes full-time, part-time, temporary, and contract employees in the UAE.
Q4. How much does workers compensation cost?
Your premium depends on the type of industry (construction, for instance, has higher risk than IT), number of employees, annual payroll, claim history, coverage limits, and add-ons.
Q5. What is the most common workers' compensation claim?
Strains, sprains, slips, trips, and falls are the most common claims against workmen compensation insurance in the UAE.
Q6. What types of injuries or illnesses are typically excluded from coverage under Employee’s (Workmen’s) Compensation Insurance?
Injuries and illnesses that occur outside of work, self-inflicted injuries, those resulting from substance use or intoxication, and incidents beyond the scope of coverage are generally excluded under workers’ compensation insurance in the UAE.
Q7. What add-on covers are provided in the Employee's (Workmen's) Compensation policy?
You can enhance the coverage of workmen’s compensation insurance in UAE by opting for add-ons or additional coverages such as transportation coverage, employer’s liability, and 24-hour personal accident cover (which protects against accidental injuries outside of working hours).
Q8. How does a workers' compensation policy work?
Workers’ compensation insurance in the UAE is a mandatory policy that provides financial protection to employees in case of work-related injuries or illnesses. It covers medical expenses, lost income, and compensation for disability or death, ensuring legal compliance and safeguarding both employees and employers.
Q9. Is workmen compensation mandatory in the UAE?
Yes, workers compensation insurance policy is required by the law in the UAE. It safeguards the employees from work-related injury or death.
Q10. Who pays the cost of workers' compensation insurance?
An employer in the UAE is liable to pay the cost of a workers compensation insurance policy, as it’s mandated by the law.
Q11. What happens if a business doesn’t have Workmen's Compensation Insurance?
Employers who fail to provide this insurance face legal penalties and fines. They may also be held financially responsible for medical and disability claims.
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