Workmen Compensation Insurance UAE

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.

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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 Workmen 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 Workmen 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	Covers the death of an employee due to a work-related accident Compensation can range from AED 18,000 to AED 35,000, depending on the employee's salary over the past 24 months Additional coverage may increase the compensation amount
✅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	Employees are entitled to compensation for lost pay if they suffer a work-related injury that prevents them from working for a certain period This covers up to certain months or until the employee recovers, becomes permanently disabled, or passes away
✅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 Workmen 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

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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.

Frequently Asked Questions

A workmen compensation insurance policy generally covers work-related injuries or illnesses, including accidents at the workplace or work-related duties.

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.

Employers who fail to provide this insurance face legal penalties and fines. They may also be held financially responsible for medical and disability claims.

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.