Where Workmen’s Compensation Insurance is Mandatory for Employers in the UAE

Introduction

Employee safety comes first above even the hardest work. It’s not just about completing the assigned tasks in the workplace but also making sure workers are protected every step of the way. 

In the United Arab Emirates (UAE), the government values worker safety, and the law mandates that companies take responsibility when accidents or injuries occur to workers on the job.

This proactive measure by the government is a step in the right direction. However, across the UAE, some employers may feel that having this insurance is not that important for their business.

In this blog, we will explore the key areas where workmen’s compensation is required and explain why it is essential for every employer to understand and comply with these mandates.

What is Workmen’s Compensation Insurance in the UAE?

The main goal of workmen’s compensation insurance is for employers to avoid legal disputes and financial liabilities and help ensure the safety and well-being of the workforce.

As a beneficiary to the employees, the workmen’s compensation covers financial assistance

• Medical expenses- provide essential financial support for medical treatments resulting from workplace injuries or illnesses. The coverage includes doctor consultations, surgeries, hospital stays, medication, and rehabilitation services.
  
• Healthcare benefits- extends to broader healthcare benefits that include access to ongoing treatment and specialist care such as physiotherapy due to work related injury.

• Disabilities- Work-related accident leads to permanent or temporary disability, stable compensation is offered to employees for both partial and total disabilities.

• Lost wages— Included for employees, covering their salary when they are away from work due to workplace injury or accident.

Where Do You Need Workmen’s Compensation Insurance?

High-risk industries

If your business operates in a risk environment with employees exposed to fatal situations, such as construction, manufacturing, healthcare, and more, holding workmen’s compensation coverage becomes essential.

In the event of accidents or injuries caused by employees, the company needs to take full responsibility for covering their medical expenses. Whether it is a government or private hospital, until the person recovers, the employer needs to pay the full costs of the travel expenses that were used for the treatment.

Legal mandates

Compliance with local labor laws and regulations is essential for all businesses. Obtaining Workmen’s Compensation Insurance not only meets these legal obligations but also shields you from potential lawsuits and liabilities.

If an employee suffers an accident or fatality due to workplace conditions, they can file a suit against the company. In such cases, the employer must take full responsibility for medical expenses and provide appropriate compensation.

Contractual obligations

Many business partners require proof of your commitment to employee safety. Having a workmen’s compensation policy demonstrates your business’s financial readiness and responsibility, which can help build trust and credibility in professional relationships.

Subcontracting

For businesses that hire subcontractors, having liability insurance is crucial. This policy covers injuries and claims that may arise from incidents involving subcontracted work, providing a safety net for your operations.

Multiple operating regions

If your business operates in multiple locations, obtaining a Workmen’s compensation policy tailored to each region is vital. This ensures compliance with the legal requirements specific to each jurisdiction, protecting both your employees and your business.

In short, any organization with employees is mandated to obtain this insurance.

What are the Exclusions in Workmen’s Compensation Insurance

• If employees incur an injury or lose life while intoxicated with alcohol or drugs, the policy does not provide settlement for all such accidents.

• Any pre-existing medical conditions will not be included in the insurance.

• Independent contractors or freelancers are not included in the policy unless agreed by the insurer.

• Employees trying to self-harm or create an injury intentionally will not be eligible for the workmen’s compensation insurance.

Get to Know CoverB: Your Workmen’s Compensation Provider

As a leading insurance service provider in the UAE, CoverB offers workmen’s compensation policies that stand out from typical market offerings. With comprehensive coverage, transparent claims processing, and full compliance with UAE labor laws and regulations, CoverB ensures an efficient experience for businesses. Every step of the process is designed to provide timely benefits for your employees, keeping both your workforce and business protected.

Final Note

Workmen’s Compensation Insurance provides vital financial protection for both employers and employees, ensuring that work-related injuries are managed effectively and compensation is granted without delay.

With stringent regulations and the potential for significant financial repercussions, the importance of having this insurance cannot be overstated. By investing in Workmen’s Compensation Insurance, you are safeguarding your employees’ well-being and securing your business against unforeseen liabilities.

If you’re looking to safeguard your workplace rights and protect your business, connect with the experts at CoverB today to secure the coverage and rights you need.