WORKMEN’S COMPENSATION INSURANCE

    FREQUENTLY ASKED QUESTIONS (FAQs)

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    What is Workmen’s Compensation Insurance?

    Workmen Compensation Insurance covers your employees against occupational injury and occupational diseases. The cover is designed to compensate employees in line with the UAE Federal / Labor Laws.

     

    What is covered in Workmen’s Compensation (WC) Insurance?

    BASIC COVER:

    Work related death: Compensation limited to 24 months wages (Subject to a minimum AED 18,000 and maximum AED 35,000).

    Permanent Total Disability (PTD): Where an employee is no longer able to work due to a work related injury for a period exceeding 12 months. Compensation shall equal the amount payable in event of work related death. Example of PTD would be Loss of Both Arms, Complete Paralysis, Loss of Both eyes etc.

    Permanent Partial Disability (PPD):Partial Disability due to a Work related injury. Compensation shall be a percentage of the death amount depending on the injury. Example of PPD would be loss of a finger or one eye.

    Temporary Total Disability: Compensation for lost wages for the time the employee is unable to work. Full wages for the first 6 months and half thereon for the next 6 months or until the worker fully recovers, is declared disabled or dies, whichever occurs first.

    Medical Expenses: Expenses for treatment of the occupational injury or diseases such as x-rays, diagnostic tests, medicines, surgeries, rehabilitation equipment, supply of artificial limbs etc. Cover is provided up to a specified amount per person per accident (E.g. AED 20,000 – AED 30,000 per person per accident)

    Repatriation Expenses: Cover for expenses to repatriate mortal remains of the employee following death. Cover is provided up to specified amount per person (E.g. AED 10,000 – AED 25,000 per person)

    ADD-ON COVERS:

    Employers Liability: In the event an employee injury or death results from a negligent act of the employer, public prosecutors or the family of the deceased may file a suit against the employer for causing wrongful death or injury. In such cases, damages may be awarded by a court of law far exceeding the maximum AED 35,000 covered under WC Basic Death cover. Employers Liability covers such court awards for damages and legal defense costs up to the limit specified in the insurance policy. Limits typically start from AED 500,000 for any one occurrence or in the aggregate of multiple occurrences during the policy period.

     

    What is not covered under a Workmen’s Compensation Insurance?

    The major exclusions found in Workmen Compensation policies in the UAE are:

    • Natural Death
    • Suicide, attempted suicide or deliberate self-injury to claim benefits
    • Injuries or diseases resulting from alcohol, narcotics, other intoxicants
    • Death or Injury resulting from exposure to Electromagnetic Fields, Nuclear Radiation
    • Death or Injury resulting from exposure to Genetically Modified Organisms, Toxic Mold, Transmissible Spongiform Encephalopathy
    • Diseases or injury arising out of Transmissible Spongiform Encephalopathy
    • War & Political Risks
    • Any violation of the UAE/UN/US/EU/UK sanctions
    • Any injury or death occurring outside the specified territory regardless if work related

    Additional Benefits that can be found under Workmen’s Compensation Insurance:

    • 24 Hours Personal Accident cover: Death and disability benefits can be extended to accidental injury not occurring during work hours or in the work place.
    • Injury to employees whilst being transported to and from the work place. (such transportation is to be provided by the employer.)
    • Death or injury resulting from Sunstroke or Hernia
    • Increased death benefit amount.
    • Extension to cover offshore works where needed

     

    What is a Group Life and Personal Accident Insurance (GLPA)?

    Simply put, GLPA is a life insurance cover for your employees. Each cover can be customized to the client’s requirements. It offers flexibility to employers who would like to provide their employees with additional benefits.

    Some key benefits for GLPA that make it much wider than cover offered under Workmen’s Compensation Insurance are:

    • Death due to any cause is covered!
    • Cover is 24 hours, on/off duty!
    • Cover is not restricted to specific territory. It’s worldwide!
    • All other basic Workmen Compensation Benefits can be included.

    Basic Benefit:

    • Death Due to Any Cause (DAC): Natural death is included! Amount of cover is up to the employer. Employer may choose sum insured based on a multiple of salaries (E.g. 12-60 months) or fixed amount for all employees or based on seniority levels (categorization).

    Additional Benefits to choose from:

    • Accidental Death Benefit: Additional 100% of death benefit in the event of accidental death
    • Permanent Total Disability (Accident): 100% of death benefit
    • Permanent Total Disability (Sickness): 100% of death benefit
    • Permanent Partial Disability (Accident): Percentage of death benefit based on scale of disability
    • Permanent Partial Disability (Sickness): Percentage of death benefit based on scale of disability
    • Temporary Total Disability (Accident): Compensation of lost wages for period employee is unable to work (max up to 12 months)
    • Temporary Total Disability (Sickness): Compensation of lost wages for period employee is unable to work (max up to 12 months)
    • Accidental Medical Expenses: Limits starting from AED 5,000 per employee per year
    • Repatriation Expenses: Limit starting from AED 5,000 per employee
    • Terminal Illness (Accelerated Benefit):  Upon diagnosis of a terminal illness, 50% of Death benefit is paid. Terminal Illnesses: In the opinion of a medical professional, the insured member has less than 12 months to live.
    • Critical Illness: Payout of fixed amount upon diagnosis of any listed critical illness (cancer, stroke, renal failure etc)
    • Cover for offshore employees: Wherever required

     

    What is not covered under Group Life and Personal Accident Insurance (GLPA)?

    Major Exclusions found in GLPA policies:

    • War & Terrorism
    • Injury or death directly or indirectly caused by chemical, biological, or nuclear explosion, pollution, contamination and/or fire following thereon
    • Engaging in aviation (other than a fare paying passenger)
    • Hazardous sports training or competing
    • Injuries or death sustained while violating law, resisting arrest, committing an assault
    • Employers liability
    • Disability benefits from attempted suicide

    Comparison Summary

    COVERGROUP LIFE AND PERSONAL ACCIDENT INSURANCEWORKMEN’S COMPENSATION INSURANCE
    DEATHDEATH DUE TO ANY CAUSEWORK-RELATED DEATH ONLY. CAN BE EXTENDED TO NON WORK ACCIDENTAL DEATH
    TERRITORIAL LIMITWORLDWIDEBASIC TERRITORY UAE ONLY – CAN BE EXTENDED TO AREAS OF WORK THE ORGANIZATION IS INVOLVED IN (E.G. GCC COUNTRIES)
    SUM INSUREDCUSTOMIZABLE. FLAT AMOUNT OR MULTIPLE OF SALARY24 MONTHS WAGES (MIN 18,000 AND MAX 35,000)
    ADDITIONAL ACCIDENTAL DEATH BENEFITCAN BE ADDED FOR ADDITIONAL 100% OF DEATH BENEFITNOT INCLUDED
    PERMANENT TOTAL DISABILITYCAN BE ADDED FOR ACCIDENT ONLY OR ACCIDENT AND SICKNESSINCLUDED FOR WORK-RELATED ACCIDENTS ONLY. CAN BE EXTENDED TO NON-WORK ACCIDENT DISABILITY
    PERMANENT PARTIAL DISABILITYCAN BE ADDED FOR ACCIDENT ONLY OR ACCIDENT AND SICKNESS (AS PER CONTINENTAL SCALE*)INCLUDED FOR WORK RELATED ACCIDENTS ONLY. SCALE AS PER SCHEDULE 2 OF UAE LABOR LAW / GOVT DOCTORS REPORT. CAN BE EXTENDED TO NON-WORK ACCIDENTAL DISABILITY
    TEMPORARY TOTAL DISABILITYCAN BE ADDED FOR ACCIDENT AND FOR SICKNESS. 100% OF WAGES FOR UP TO 12 MONTHS OR 1% OF SUM INSURED WEEKLY UP TO MAX 52 WEEKSINCLUDED FOR WORK ACCIDENT ONLY . COVER AS PER UAE LAW: MAX 100% OF WAGES FOR FIRST 6 MONTHS AND 50% THEREON FOR REMAINING 6 MONTHS
    ACCIDENTAL MEDICAL EXPENSESCAN BE ADDED. LIMIT IS PER PERSON PER YEARINCLUDED FOR WORK ACCIDENT: LIMIT IS PER PERSON PER ACCIDENT
    TERMINAL ILLNESSCAN BE ADDEDNOT COVERED
    CRITICAL ILLNESSCAN BE ADDEDNOT COVERED
    COMPLIANCE WITH WC LAWSMAY OR MAY NOT COMPLY AND WILL HAVE SOME LIMITSCOMPLIANT BUT WITH LIMITS ON CERTAIN COVERS
    EMPLOYERS LIABILITYNOT INCLUDEDINCLUDED BY MOST INSURERS AS A STANDARD. LIMITS MAY VARY FROM INSURER TO INSURER

    *TERMINAL ILLNESS DEFINED AS ILLNESS THAT WILL LEAD TO DEATH WITHIN 12 MONTHS IN THE VIEW OF A MEDICAL PROFESSIONAL

    ** IF THE SUMS INSURED AND BENEFITS ADDED ON MEET OR EXCEED THE LABOR LAW REQUIREMENTS AND THE DISABILITY BENEFITS ARE MATCHED, IT WILL COMPLY WITH THE LAW

     

    Why should employers look into a combination of WC and GLPA?

    Employers should ideally look into a combination of both WC and GLPA and here’s why:

    • Workmen’s compensation (WC ) Medical Expenses are covered “per person per accident”. GLPA is typically “per person per year”. Limit of cover can get exhausted on GLPA in a single medical expenses claim.
    • Employer’s Liability (EL) cover is included within WC cover and not for GLPA. To protect against litigation, EL is essential. GLPA + EL (EL without other WC benefits) can also be purchased
    • Natural Death and other sickness benefits on GLPA are great and affordable benefits to offer to your employees to drive up satisfaction/retention.

    Talk to us about how a unique combination of both can be created to suit your needs.