New insurance policy in UAE brings relief to Indian families

The initiative, a collaboration between two leading insurance companies in the UAE, promises compensation ranging from Rs.8 lakh (Dh35,000) to Rs.17 lakh (Dh75,000) for families of employees in case of death due to natural or accidental causes

Jeddah: In a major sigh of relief to destitute Indian workers including a large number from Telangana in UAE, a new insurance plan has been revealed by the Indian Consulate in Dubai on Tuesday.

The initiative, a collaboration between two leading insurance companies in the UAE, promises compensation ranging from Rs.8 lakh (Dh35,000) to Rs.17 lakh (Dh75,000) for families of employees in case of death due to natural or accidental causes. The plan, primarily targeting blue-collar workers, extends its benefits to employees aged 18 to 70 with annual premiums as low as Rs.735 (Dh37) to Rs.1625 (Dh72). The plan also offers a Dh.12,000 coverage for repatriation of the mortal remains of the insured employee.

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There are around 35 lakh Indians residing in the UAE, out of which around 65 per cent are blue collar workers. They form the largest group of migrant workers in the UAE, the consulate pointed out. It said the mission registered a total of 1,750 death cases in 2022, out of which around 1,100 were workers and in 2023 around 1,000 deaths were registered for workers from the total count of 1,513.“It has been observed that in more than 90 per cent of the cases, the cause of death is natural. It has been noticed that most of the companies are insuring their employees under health insurance and workmen’s compensation [work-related injuries and deaths].

However, there is no mandatory insurance coverage for the natural death of employees, and hence the legal heirs/dependents of the deceased do not receive any compensation in cases of natural death,” the mission pointed out.

To address this, the consulate said it facilitated a joint meeting between the major companies recruiting Indian blue-collar workers and the insurance service providers Gargash Insurance Services and Orient Insurance to arrive at an insurance package, which could cover both natural and accidental death.