Workmen Compensation Insurance

A Workers Compensation Insurance policy indemnifies an organisation for their legal liability for accidental bodily injury or disease to any employee arising from their business activities.

Cover provided by Workers Compensation Insurance Dubai

Cover is provided as per the provisions of the UAE Federal labour Law No. 8 of 1980 (Chapter VIII) and subsequent amendments thereto &/or Shariah law.

Current Legal Position

Employers have a strict liability to compensate workers for industrial diseases and sickness as well as accidents sustained at work. Insurance is not generally compulsory (although it is in some Free Zone areas including Jebel Ali Free Zone) but it is nevertheless usual and advisable for organisations to arrange Workers Compensation Insurance Dubai.

The current minimum level of compensation payable is AED 18,000 and a maximum of AED 35,000 with leave to claim additional compensation where negligence is alleged.

Geographical Area

Within the United Arab Emirates only but worldwide in respect of visits abroad on business, training or attending seminars.


United Arab Emirates

Information Requirements

The premium will be calculated based on the estimated annual wages (including encashed allowances) of all employees. Therefore we will require you to advise us:

  • Estimated annual wages
  • Total number of employees
  • Employee designations/role description


For information, as the wages are ‘estimated’, the initial premium advised will be provisional and subject to adjustment at the end of the policy period based on the declaration of actual annual wages paid.

Usual Extensions

In addition to the UAE legal cover, Tokio Marine, Dubai Insurance Company able to consider requests for additional ‘Employers Liability’ cover which is over and above the legal requirements. You will need to request this as an extension to the cover and advise the amount of cover required.

Extent of Cover

Any loss will be considered so long as there is cover for the material damage element under the Property All Risks or Fire and Perils policy.

When setting the sum insured, the policyholder should ideally consult with their accountant to make sure all figures are adequate. The sum insured will usually be set by calculating estimated Gross Profit using one of two methods:

  • Addition Basis = Net Profit + Standing Charges
  • Difference Basis = Turnover + Closing Stock less Opening Stock + Purchases + Specified Working Expenses


In addition, the policyholder will also need to take account of future inflation and factor in where the maximum period of interruption (The Maximum Indemnity Period) is longer than 12 months

As this is just an estimate of future profitability, the insurer can arrange the Business Interruption policy on a ‘Declaration Linked’ basis whereby the policy will be adjusted at the end of the policyholder’s financial year to take account of actual Gross Profit.

The perils covered and situations excluded will be as defined in the main property policy.