New insurance scheme for Indian workers announced, offers up to Dh75,000 compensation

Indian Workers in UAE

A new insurance scheme aimed at safeguarding Indian workers in the UAE has been introduced, ensuring compensation of up to Dh75,000 for their families in the event of the employee's demise, whether due to accidents or natural causes.

Known as the Life Protection Plan (LPP), this initiative took effect on March 1, as announced by the Indian Consulate in Dubai. It seeks to address a significant gap in employment benefits for the 2.27 million blue-collar workers in the UAE.

While many companies provide health insurance and compensation for work-related injuries and fatalities, there's often no mandatory coverage for employees' natural deaths. This lack of coverage could leave families without funds for repatriation costs in the unfortunate event of the breadwinner's passing.

To bridge this gap, the Indian Consulate facilitated discussions between major UAE companies hiring blue-collar workers and two insurance service providers. The resulting insurance plan offers annual premiums ranging from Dh37 to Dh72 for individuals aged 18 to 70.

In the event of a worker's demise due to accidents or natural causes, beneficiaries are eligible for compensation ranging from Dh35,000 to Dh75,000, depending on the selected premium. Additionally, the plan includes Dh12,000 coverage for repatriating the insured employee's remains.

This initiative was born out of the collaboration between two insurance companies, specifically targeting blue-collar workers, with terms and conditions negotiated with recruitment companies.

The Consul-General of India in Dubai, Satish Sivan, emphasized the paramount importance of the Indian community's welfare. Given the significant number of natural death cases among workers annually, the Indian Consulate encourages all companies to consider subscribing to the LPP.

According to data from the Indian Consulate, there are approximately 3.5 million Indians residing in the UAE, with around 65 percent being blue-collar workers. The mission recorded 1,750 deaths in Dubai in 2022, with 1,100 of them being workers. A similar trend was observed in 2023, with 1,000 worker deaths out of a total of 1,513. Over 90 percent of these deaths were attributed to natural causes.

In summary, the Life Protection Plan aims to provide essential financial security to Indian workers and their families in the UAE, ensuring they receive adequate compensation in the unfortunate event of a worker's demise, thereby mitigating the financial burden during such challenging times.