Anyone can go through a difficult situation such as losing a job. It is true that any worker can go through this circumstance, specifically in times of health or economic crisis. The ideal is that anyone can have insurance in case of any eventuality. For instance, if you want to protect yourself from the financial consequences of this problem, you can use UAE job loss insurance. This means, a type of insurance that can cover the payment of mortgage or personal loan payments if the person loses their job unexpectedly.
In this article you can analyze all the highly relevant information about job loss insurance in the UAE. Initially, you will see the characteristics and benefits of having this insurance, in addition to having the requirements and conditions to access it. We are also going to explain the process on how to request it and how to use it if necessary. Finally, we will show you some of the most important insurance companies so you can choose the best coverage for the situation.
What is UAE job loss insurance?
UAE job loss insurance is a formula of insurance or social security that is provided to Emirates and residents working in the federal and private sectors. This way, they can count on financial support if they lose their jobs when they are fired by their employer.
It is important that you understand that insurance for job loss UAE must be acquired during your employment. Therefore, you must have the UAE job loss insurance registration if you want to receive financial support.
Additionally, this insurance premium must be paid monthly by the employee. This way, you will be able to claim financial support for the next three months after you have lost your job.
In the UAE, employees are required to take out this insurance. On the other hand, those who do not comply with these requirements are subject to economic fines. The employee must be aware of the Loss of employment insurance UAE and the consequences.
Scope of UAE job loss insurance
This UAE job loss insurance applies to all employees who belong to the private and federal sectors with the exception of:
Investors and business owners who manage and own their own companies.
Domestic employees.
Those employed on a temporary basis.
Employees who are under 18 years of age.
Retirees who are receiving a pension and started working with a new employer.
Cost of job loss insurance in UAE
Job loss protection insurance UAE must be taught while the employee is still in employment.
If the employee has a basic salary of AED 16,000 or less, he or she has to pay a monthly insurance premium of AED 5. The annual cost will be 60 AED. You are prerequisite to wage the supreme amount and no more than AED 10,000 for each month of the year while you have the policy.
If the employee has a basic salary that exceeds AED 16,000, he or she must pay a monthly insurance premium of AED 10. You have to pay for this policy every year and it costs 120AED. For this category, the maximum price you have to pay cannot be more than AED 10,000 for each month of subscription.
Any worker can pay an insurance premium monthly or as long as they can because there are several options. For instance, there are quarterly, semi-annual and annual insurance premiums that you can take out if you need them. In addition, many reach an agreement with any insurance company, and may have some extra benefits to the basic package.
People who have the right to obtain UAE job loss insurance
Virtually any employee who has lost their job, with certain exceptions, can obtain Insurance against job loss UAE. Thus, if employees have been canned for misbehavior, they cannot receive UAE job loss insurance benefits.
If the employee loses his job through no liability of his own, he may receive insurance benefits. However, if you were fired for a reason beyond your control you must meet these criteria:
The insured employee must have a subscription period in the UAE job loss insurance for at least 12 consecutive months.
There must be a commitment on the part of the insurance beneficiary to pay all premiums owed within the established time.
The insurance beneficiary must prove that the reason for losing their job is not due to their resignation.
The reason for dismissal cannot be for disciplinary reasons.
Registration cannot be interrupted for at least 3 consecutive months.
The beneficiary employee has to submit the application within 30 days of the date of termination of the employment relationship or decision of the UAE judiciary.
If the employee acted intentionally in a work accident or if the establishment where he works does not exist, he will not be able to receive UAE job loss insurance benefits.
Do not subscribe to UAE job loss insurance and do not make payments
Since October 1 of last year, management in this nation will fine you if you are an employee who follows insurance payment instructions. In a few words, if you do not pay attention to these instructions you will suffer the following fines or sanctions.
If the employee does not subscribe to the UAE job loss insurance before the deadline, a fine of AED 400 will be imposed.
When 3 months pass after the due date and the employee does not pay their insurance premiums, a fine of AED 200 will be imposed. Additionally, your insurance certificate will be irrecoverable.
If the employee does not pay his fines within the next 3 months from the due date, the fine will be deducted from his salary through the Wage Protection System (WPS). Also, it can be from your end-of-service benefits or another scheme that is approved by MOHRE.
How employees can apply for UAE job loss insurance
In the first instance, employees must contact any of the companies that are responsible for contracting the policy. In addition, there are several ways for employees to enroll in this insurance program, where we can find:
Through an insurance company website.
ATMs and kiosk machines.
Through the business services center.
With exchange companies.
How an employee receives compensation from UAE job loss insurance
The employee has a period of 30 days from losing his job to file a claim through the channels enabled for this purpose. This way, you can do it via the web, smart application or through a contact center.
On the other hand, compensation will be delivered within the next 2 weeks after the date the claim was made. Furthermore, it will not exceed 3 months’ salary. However, MOHRE will inform you of any breach of the terms and conditions of the insurance policy by your insurance company.
Dubai job insurance is essential so that employees can feel more secure. For this reason, it is important that you know everything about these insurance policies. Therefore, if you want to know more about UAE job loss insurance, you can contact us and receive professional advice. Additionally, you can visit our insights and get more information about different aspects of working in the UAE.
Harneet Bhatia is the Sales and Compliance Officer at Connect Group.
She is Specialized in Company Setup Services ,
Business Consultancy and Sales Assistance.
She is Working Within Middle East and UAE. Also she has Done
her Master of Business Administration in Literature.
Job loss insurance UAE
Anyone can go through a difficult situation such as losing a job. It is true that any worker can go through this circumstance, specifically in times of health or economic crisis. The ideal is that anyone can have insurance in case of any eventuality. For instance, if you want to protect yourself from the financial consequences of this problem, you can use UAE job loss insurance. This means, a type of insurance that can cover the payment of mortgage or personal loan payments if the person loses their job unexpectedly.
In this article you can analyze all the highly relevant information about job loss insurance in the UAE. Initially, you will see the characteristics and benefits of having this insurance, in addition to having the requirements and conditions to access it. We are also going to explain the process on how to request it and how to use it if necessary. Finally, we will show you some of the most important insurance companies so you can choose the best coverage for the situation.
What is UAE job loss insurance?
UAE job loss insurance is a formula of insurance or social security that is provided to Emirates and residents working in the federal and private sectors. This way, they can count on financial support if they lose their jobs when they are fired by their employer.
It is important that you understand that insurance for job loss UAE must be acquired during your employment. Therefore, you must have the UAE job loss insurance registration if you want to receive financial support.
Additionally, this insurance premium must be paid monthly by the employee. This way, you will be able to claim financial support for the next three months after you have lost your job.
In the UAE, employees are required to take out this insurance. On the other hand, those who do not comply with these requirements are subject to economic fines. The employee must be aware of the Loss of employment insurance UAE and the consequences.
Scope of UAE job loss insurance
This UAE job loss insurance applies to all employees who belong to the private and federal sectors with the exception of:
Cost of job loss insurance in UAE
Job loss protection insurance UAE must be taught while the employee is still in employment.
Any worker can pay an insurance premium monthly or as long as they can because there are several options. For instance, there are quarterly, semi-annual and annual insurance premiums that you can take out if you need them. In addition, many reach an agreement with any insurance company, and may have some extra benefits to the basic package.
People who have the right to obtain UAE job loss insurance
Virtually any employee who has lost their job, with certain exceptions, can obtain Insurance against job loss UAE. Thus, if employees have been canned for misbehavior, they cannot receive UAE job loss insurance benefits.
If the employee loses his job through no liability of his own, he may receive insurance benefits. However, if you were fired for a reason beyond your control you must meet these criteria:
Do not subscribe to UAE job loss insurance and do not make payments
Since October 1 of last year, management in this nation will fine you if you are an employee who follows insurance payment instructions. In a few words, if you do not pay attention to these instructions you will suffer the following fines or sanctions.
How employees can apply for UAE job loss insurance
In the first instance, employees must contact any of the companies that are responsible for contracting the policy. In addition, there are several ways for employees to enroll in this insurance program, where we can find:
How an employee receives compensation from UAE job loss insurance
The employee has a period of 30 days from losing his job to file a claim through the channels enabled for this purpose. This way, you can do it via the web, smart application or through a contact center.
On the other hand, compensation will be delivered within the next 2 weeks after the date the claim was made. Furthermore, it will not exceed 3 months’ salary. However, MOHRE will inform you of any breach of the terms and conditions of the insurance policy by your insurance company.
Dubai job insurance is essential so that employees can feel more secure. For this reason, it is important that you know everything about these insurance policies. Therefore, if you want to know more about UAE job loss insurance, you can contact us and receive professional advice. Additionally, you can visit our insights and get more information about different aspects of working in the UAE.
Harneet
Harneet Bhatia is the Sales and Compliance Officer at Connect Group. She is Specialized in Company Setup Services , Business Consultancy and Sales Assistance. She is Working Within Middle East and UAE. Also she has Done her Master of Business Administration in Literature.
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