A new insurance scheme for Indian workers has been announced in the UAE, ensuring that their families will get compensation of up to Dh75,000 in case of the employee’s death, be it due to accidents or natural causes.
Called the Life Protection Plan (LPP), the scheme came into force on March 1, the Indian Consulate in Dubai said on Tuesday.
The LPP was a policy put together to bridge a gap in employment benefits for the 2.27 million blue-collar workers in the UAE, the consulate said.
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While many companies provide health insurance and compensation for work-related injuries and deaths, no compulsory coverage is provided in case of employees’ natural deaths. This means many workers’ families could be left in the lurch — with no funds for repatriation costs — in case their breadwinner dies.
To address this issue, the Indian Consulate facilitated a meeting between major UAE companies recruiting blue-collar workers and two insurance service providers.
Annual premiums, benefits
The insurance plan is offered at annual premiums ranging from Dh37 to Dh72 for individuals aged 18 to 70.
In case a worker dies due to an accident or natural causes, beneficiaries can get compensation that ranges from Dh35,000 to Dh75,000, depending on the selected premium.
The plan also provides Dh12,000 coverage for the repatriation of the insured employee’s remains.
Two insurance companies worked on a package specifically for blue-collar workers, and then the terms and conditions were negotiated with the recruitment companies.
Here’s an overview of the policy:
- For the policy with Dh72 annual premium, the compensation is Dh75,000
- For Dh50 per year, it’s Dh50,000
- For Dh37, it’s Dh35,000
1,000 worker deaths in 2023
About 3.5 million Indians live in the UAE, with around 65 per cent being blue-collar workers, the Indian Consulate said.
“The welfare of the Indian community remains our utmost priority,” said Consul-General Satish Sivan.
“Keeping in view a large number of natural death cases of workers in a year and in order to provide some financial benefits to the family of the deceased, the Consulate-General of India, Dubai, encourages all companies to consider a subscription to the [LPP].”
In 2022, the mission recorded 1,750 deaths in Dubai — and 1,100 of them were workers. A similar trend was noted in 2023, with 1,000 worker deaths out of a total of 1,513. More than 90 per cent of these deaths were attributed to natural causes.