Workmen’s Compensation Insurance
In Dubai & The UAE
Keeping employees protected at work is a top priority for any organization. Unfortunately, uncertainties are part of life and numerous workplace accidents occur. When this happens, as the employer, you are held liable. Here is where the workmen compensation insurance plays a key role in protecting your bottom line.
What is Workmen’s Compensation Insurance?
Workman’s compensation insurance, one of our Commercial Insurance policies, is designed to protect your business and minimize exposure to risk arising from work related injuries to your employees. Workmen’s compensation insurance provides coverage for your valued employees in the event they fall sick, contract an occupational disease, sustain bodily injury from a work-related incident, or in the unfortunate event that they lose their life in the course of their employment.
A workmen’s compensation insurance policy indemnifies a business for the medical expenses and loss of wages due to accidental bodily injury or disease to their employees arising from their business activities during the employment. Without proper coverage, your business would be held liable for these costs, which can quickly add up.
What’s Covered in a Workmen’s Compensation Policy In Dubai?
- Disability or death resulting from a work-related injury
- Medical costs associated with the accidental injury and costs associated for ongoing treatment and care
- Funeral expense if/when repatriation is not possible
- Loss of wages paid to the employee during their recovery period
- Coverage for employees while they are traveling on business trips
- Total disability expenses (permanent total and permanent partial)
- Temporary partial disability
- Repatriation expenses
What’s not Covered Under a Workmen’s Compensation Policy?
- Any injury or death resulting from substance abuse or intoxication
- Any injury or death resulting from a violation of company policies
- Self-inflicted injuries and suicide attempts
- Any injury, death or disabilities caused due to war, invasion, political conflict, or terrorism.
- Any illness or injury arising due to communicable diseases
Additional Coverage
While typical workers’ comp insurance policies cover you against common workplace risks, insurers offer additional protection layers to address your unique circumstances. These can include cover extensions/policy add-ons such as:
- Transportation coverage: protects employees against injuries sustained by the employee being transported to and from work.
- 24-hour coverage: extends coverage to include accidental injuries occurring outside the workplace and in non-working hours.
- Employer’s liability: this add-on covers employers from any lawsuits brought in respect of any work related injuries or death judged to be resulting from your proven negligence.
How Much Does Workmen’s Insurance In The UAE Cost?
The costs of workmen’s cost insurance is based on a variety of factors, including the number of employers, your organizational workman’s comp claims, and your industry. For example, businesses in an industry with high risk of injury or death may cost more for coverage compared to those with minimal risk.
Workmen’s Compensation Insurance Claims Process in the UAE
Steps to File a Claim:
- Report the Incident: The employer must report the workplace injury or illness to the insurer immediately.
- Medical Assessment: The injured employee undergoes medical evaluation and treatment.
- Submit Required Documents: Employers must provide accident reports, medical records, and proof of employment.
- Claim Evaluation: The insurer assesses the claim based on policy terms and UAE labor law.
- Approval & Compensation: If approved, the insurer covers medical expenses, lost wages, and disability benefits.
Does Workmen’s Compensation Insurance Cover Life and Personal Accidents?
- Life Coverage: While it provides compensation in case of work-related death, it does not replace a life insurance policy.
- Personal Accident Coverage: Covers permanent disability or death resulting from workplace accidents.
- Medical Expenses & Lost Wages: Pays for medical treatment and a portion of lost income during recovery.
Difference Between Workmen’s Compensation Insurance and Employer’s Liability Insurance
Is Workmen’s Compensation Insurance Mandatory In Dubai?
UAE Federal Law No. 8 makes it mandatory for all employers to compensate employees who are injured due to an accident in the course of their employment. 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. While all employers strive to maintain a safe work environment, accidents happen. In the event of an accident, you will be required to pay your injured employee. Insurance helps to ensure these costs don’t come out of your pocket and bottom line.
Should I Get Supplemental Liability Insurance to Compliment Workman’s Comp Insurance?
Absolutely! An employer can invest in protection against the claim made by the employee under common law or Sharia Law. Similar to the cost of workmen’s compensation insurance, premium amounts vary based on the estimated annual earnings of the employees in the company. This amount is adjustable at the end of the policy based on the actual earnings. Liability extensions typically cover court costs, awards, and damages.
Typical Case Study: Factory & Other Industries in the UAE
Case Study – Manufacturing Factory Accident
- Incident: A factory worker in Dubai suffers a hand injury due to faulty machinery.
- Employer Action: The employer reports the accident and provides immediate medical care.
- Compensation Provided: The insurer covers hospitalization, surgery, and 70% of the employee’s wages during recovery.
- Outcome: The worker recovers, and the employer complies with UAE labor law while avoiding legal risks.
Case Study – Construction Industry
- Incident: A construction worker falls from scaffolding and sustains a severe back injury.
- Compensation Provided: The insurer covers medical treatment, rehabilitation, and long-term disability payments.
- Employer Benefit: Ensures compliance with UAE regulations and financial security for the injured worker.
Workmen’s Compensation Insurance with Petra
At Petra, our team of commercial insurance professionals are here to help you determine which policies your business requires to ensure you are fully protected from any risks. We take great pride in helping employers find the right workmen’s compensation and liability coverage to ensure they are fully protected in the event of a workplace accident.
UAE Workmen’s Compensation Insurance FAQs
It is legally required under UAE labor law and protects businesses from financial losses due to workplace injuries while ensuring employee well-being.
While every business would benefit from workmen’s compensation insurance, this coverage is mandatory for businesses in the UAE. Regardless of the size or industry of your business, the proper coverage will protect your interests in the event of a workplace accident/injury.
Many smaller companies think they can’t afford coverage. However, you simply can’t afford not to have this essential business insurance coverage. Not to mention, the cost of workmen’s insurance ranges from business to business. Your exact cost will be determined by the number of employers, any previous organizational workman’s comp claims, and your industry. For example, businesses in an industry with a high risk of injury or death may cost more for coverage compared to those with minimal risk. However, businesses with a lower risk will pay less for their coverage.
Generally, it covers only work-related injuries that occur within the workplace. However, coverage may extend to work-related travel depending on the policy terms.
Yes, businesses can tailor coverage to include additional protections such as employer’s liability insurance, coverage for hazardous occupations, and extended disability benefits.
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