According to a top executive , certain inhabitants of the United Arab Emirates are now qualified to receive monthly cash compensation in the event that they lose their jobs. Employees who signed up for the required insurance against job loss when it was first made available in January 2023 are included in this group.
According to her, these workers are required to obtain a new policy "immediately" in order to maintain their financial security in the event that they lose their jobs. According to Dana Kansou, manager of Strategic Partnerships at Dubai Insurance, which is in charge of managing the Involuntary Loss of Employment (ILOE) insurance pool, "Renewal to the scheme is mandatory in order to avoid cancellation of certificate of insurance."
Should you fail to renew your insurance, you will be subject to a fee of Dh400.
Make a claim for compensation
One of the requirements for submitting a claim for compensation is that the individual making the claim must have been a member of the ILOE plan for a period of at least one year. According to Kansou, this means that individuals who joined up for the program in January 2023 are now eligible for reimbursement.
"In order to submit a claim for compensation, claimants are required to log in through the ILOE website, click on the "submit a claim" button, enter their Emirates ID and a valid phone number from the United Arab Emirates, and then proceed with the steps,"
Conditions for eligibility
Claimants are required to provide evidence that they did not resign from their positions and that they were not terminated for disciplinary acts. They are required to submit the claim within thirty days of the date when the employment relationship was terminated (the termination date).
Should they leave the nation or find a new job, they will be unable to file a claim for compensation.
During the process of making the claim, the employee is required to submit the document that details the reason for their dismissal as well as the date of their termination.
Gains in terms of money
Following the submission of the claim, the insurance company is required to transfer the compensatory amount to the account of the insured within a period of two weeks.
The day that a claimant is no longer working will be the starting point for the payment of compensation. This will continue for a period of three months or until alternative employment opportunities become available, whichever happens first.
In order to determine the amount, sixty percent of the average basic pay in the six months before to the onset of unemployment is used as the computation.
Limit on claims
No more than three months of benefits can be received from any one claim. In the event that an employee completes the maximum number of claims, the insurance certificate is regarded to have been canceled.
Prior to submitting a new claim, they would be required to continue their subscription for a period of twelve consecutive months. In the event that the claim limit for the three-month period has not been achieved, this does not apply.
Better arrangements are being negotiated
Following the first announcement of the law, it was stated that beneficiaries have the ability to negotiate better terms for higher premiums. For the time being, however, this has not been finalized. Kansou stated that the option will be available "very soon."
In accordance with the Khaleej Times, people who have been participating in the program for a period of one year have begun to receive notifications to remind them to renew their coverage.
Individuals who are eligible for insurance can renew their coverage in the same manner that they initially signed up for it. This can be done through the ILOE website or through alternative subscription channels such as exchanges and business centers, telecom partners, kiosks, banks, and automated teller machines.
ILOE: What is it?
It is mandatory for Emiratis and expatriates who are employed in the private sector or the federal government to sign up for the scheme. Investors, domestic helpers, temporary contract workers, adolescents, and retirees who are eligible for a pension are all examples of different categories that are exempt from the tax.
This extremely low-cost plan can be broken down into two distinct categories:
According to the first plan, individuals who have a basic salary of Dh16,000 or less are eligible for coverage, and the insurance premium is set at Dh5 per month (Dh60 annually). Dh10,000 is the highest amount that can be compensated on a monthly basis.
Participants who have a basic wage that is greater than Dh16,000 are eligible for the second insurance plan, which has a monthly premium of Dh10 and an annual premium of Dh120. There is a limit of Dh20,000 for the monthly remuneration that falls under this category.
