WORKMEN COMPENSATION

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

Cover Provided

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.

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.

Jurisdiction

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, we are 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.