Workmen Compensation Insurance

Workmen Compensation Insurance

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Cover of AED 250,000 starting at AED 960/year

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What is Workmen Compensation Insurance?

Workmen's Compensation Insurance is a policy designed specifically to protect the employers against all the sums payable to employees in respect of injuries occurred to them in the course of their employment as Workmen's Compensation Ordinance/ Labour Law as stated in the UAE Federal Law No.8 of 1980.

Why Workmen Compensation Insurance is required?

One of the key responsibilities of the companies in the UAE is to provide a safe and hazard-free working environment to its employees. However, despite taking all preventive measures, mishaps can occur. In case of any such unfortunate event arising out of or in the course of employment, where an employee suffers injury or loses his/her life, the company is liable to pay compensation to the employee. This is governed by the UAE Federal Law No.8 of 1980 and subsequent amendments thereto. Therefore, Workmen's Compensation Insurance is required to cover the employer against his/her liabilities to the employees in respect of injuries suffered by them during the course of their employment.

Benefits of purchasing Workmen Compensation Insurance

As per the UAE Labour Law, whenever an employee suffers ill health, accident, injury or death during the work hours or office premises, the employer is liable to pay compensation. Purchasing workmen compensation insurance covers the employee and the employer against any costs associated with hospitalisation, treatment of injury and illness and compensation as well as funeral expenses in the event of a death.

Workmen Compensation Insurance also offers coverage against any potential legal liability if an employee takes legal action as a result of illness or injury.

In short, this kind of insurance policy offers total peace of mind for both employees as well as employers.

Things covered under Workmen Compensation Insurance

The following is a list of major inclusions in the Workmen Compensation Insurance

Occupational Death

Workmen Compensation Insurance in the UAE covers occupational death of an employee. This means that under this insurance policy, an employee is eligible to get compensation if he or she dies in the office premises or outside while working for the office. The compensation is limited to the employee's 24 months’ salary; subjected to a minimum of AED 18,000/- and maximum of AED 35,000/-. This benefit amount can be increased under the option of add-on covers.

Permanent Total Disability

In case of a mishap where an employee is no longer able to work due to a work-related injury for a period of more than 12 months, he or she is eligible to receive compensation under this insurance policy.

The disabilities covered under this section are loss of both the eyes, arms or legs, complete paralysis, etc.

Permanent Partial Disability

In case an employee faces a permanent partial disability, i.e., an impairment that didn't go away even after recovering from a workplace injury or illness, he or she is eligible to receive compensation under this insurance policy.

The disabilities covered under this section are loss of one eye, loss of a finger, etc.

Temporary Total Partial Disability

An employee is eligible for compensation in lieu of the lost wages for the time he or she is not able to work due to occupational injury. The employee will receive full wages for the first 6 months and half thereon until the time he or she fully recovers or declared disabled or dead.

Medical Expenses

Under this insurance policy, the employees are eligible to receive expenses for the treatment of occupational diseases and injuries. He or she will receive expenses for diagnostic tests, x-rays, surgical procedures, medicines, rehabilitation equipment, artificial limbs, etc. Cover provided is up to a pre-decided amount per person per mishap.

Repatriation Expenses

Under this insurance policy, the employee is covered for the expenses required to repatriate his/her mortal remains. Cover provided is up to a pre-decided amount per person.

Apart from the covers mentioned above, there are certain add-on covers that can be bought for a better financial protection. These include:

Employers Liability

In the event where the negligence act of the employer has caused death to the employee, the family of the later or the public prosecutors can file a suit against the employer. In such cases, the court may award damages far exceeding the amount covered in WC Basic Death Cover. Employers Liability covers such court awards for damages and legal defence costs up to a pre-specified limit. The limit of this cover usually starts from AED 500,000 for any one occurrence as wells as multiple occurrences during the policy period.

24 Hours Personal Accident Cover

Under this, the death and disability benefits can be extended to those accidental injuries that haven't occurred at the workplace or during work hours.

Other Coverage Options

  • cover for injuries that occurred to employees whilst being transported by the employer to or from the workplace
  • cover for death and injuries caused due to sunstroke and hernia
  • cover for offshore work

* With different insurance providers, the inclusions may vary. For a comprehensive list of the same refer the workmen compensation wordings.

Things not covered under Workmen Compensation Insurance

The following is the list of the things that are not covered under workmen compensation insurance

  • natural death
  • suicidal death
  • self-injury or injury caused due to suicide
  • death caused due to the exposure to nuclear radiation, electromagnetic fields, toxic moulds, Genetically Modified Organisms or Transmissible Spongiform Encephalopathy
  • death caused due to AIDS
  • diseases and injuries caused due to abuse of alcohol and other addictive substances
  • war and political risks
  • violation of the UAE/US/UN/EU/UK sanctions
  • death and injury occurred outside the specified territory regardless if associated with work

* With different insurance providers, the exclusions may vary. For a comprehensive list of the same refer the workmen compensation wordings.

Workmen Compensation Insurance Claim process

To ensure a smooth and convenient claim process the insured is advised to follow the below mentioned steps:

  • Intimate the insurance provider about the incident.
  • Inform the factor inspector if the accident occurred at a manufacturing unit.
  • Submit the claim in writing along with all the required documents.
  • The documents required to claim the insurance are:
    • Duly filled in claim form
    • Medical bills
    • Statement provided by the witness
    • Compensation records for previous claims
    • Medical certificate, in case of permanent or temporary disability
    • Death certificate and post-mortem report, in case of employee’s death

After the submission of the claim, the insurance provider conducts a verification process. Based on the conclusion, claim will be approved or denied.In case the insured is not satisfied with the discretion of the insurance provider, he or she can raise the concern to the law.