Low-cost ins. for UAE workers starts today
Monday, 10 15 2018, Category: Insurance and Reinsurance, Country: U.A.E
The new low-cost insurance is expected to pump Dh14 billion back into the private sector. The new low-cost insurance system, which takes effect today, will ensure long-term employee protection and enhance companies' capital across the country, experts have said.
Starting Monday, the Ministry of Human Resources and Emiratisation (MOHRE) will start refunding bank guarantees of Dh3,000 per worker to employers, replacing it with a new insurance policy that costs Dh60 per worker.
The new low-cost insurance, implemented based on a cabinet decision made in June, is expected to pump Dh14 billion back into the private sector.
While officials said the ministry had taken necessary measures to begin issuing insurance documents and refunding bank guarantees to the employers, companies wait for the process to be applied smoothly. Industry professionals said the major cash liquidity would not only enhance their capital, but also ensure employees' rights are upheld.
Manerker Sarvottam, finance manager at Emirates Logistics LLC in Dubai, said spending Dh3,000 as bank guarantees out of the budget had taken a toll on the company's accounting. "We had no account over what was spent, which was a hurdle. But now, this new system secures the future of workers even more," said Sarvottam.
Source: Khaleej Times