KNOW YOUR RIGHTS: How Worker Protection (Insurance System) works?

To safeguard your employees who become ill or injured at work, Employee Protector offers Workmen’s Compensation coverage.

Here are the frequently asked questions about Worker Protection (Insurance System):

Q: Is there a limit for the bank guarantee?

A: As of 1st June 2022, there will be no limit for the bank guarantee

Q: What is the procedure to be followed by the establishment when applying the decision, if the establishment has reached the guarantee limit?

A: The establishment must complete the amount of the guarantee AED 3000/- for each worker, or provide insurance cover for uncovered workers, when a new work permit is issued or an existing work permit is renewed.

Q: Is it permissible for the facility to combine between the banking and the insurance system?

A: An establishment may combine the bank guarantee system and the insurance system

Q: When can the employer refund the bank guarantee for the worker covered by this type of coverage?

A: When renewing the work permit, the employer may choose between continuing with the bank guarantee system or move to the new worker’s insurance system and refund the excess amount, if any

Q: When the insurance system becomes mandatory for the establishment?

A: The insurance system is mandatory when issuing or renewing a work permit for establishments classified as high risk (within the inspection system).

Q: Is the insurance system mandatory for domestic workers?

A: The insurance system is mandatory for domestic workers, whether they are issued a new work permit or those whose work permits are renewed

Q: Can the establishment choose between more than one insurance pool and an insurance company to cover its workers?

A: Yes, the establishment may combine more than one Insurance pool or a company to cover its workers.

If you have further questions and clarification you may consult

Source: MOHRE

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