Workers’ Compensation and Employers’ Liability Insurance in the UAE

Workers’ Compensation Insurance, traditionally known as Workmen’s Compensation Insurance, helps businesses manage eligible liabilities arising when an employee suffers an occupational injury or disease during and because of their employment.

Employers’ Liability cover may provide additional protection for eligible claims alleging that an employer’s negligence or failure contributed to an employee’s injury. Coverage remains subject to the issued policy, limits, deductibles, employee declarations and exclusions.

Employer Obligations for Occupational Injuries:

UAE private-sector employment obligations are currently governed by Federal Decree-Law No. 33 of 2021, its Executive Regulation and related resolutions. The previous Federal Law No. 8 of 1980 is no longer the applicable labour law.

When a qualifying occupational injury or disease occurs, an employer may be required to:

1. Arrange Medical Treatment: Bear eligible treatment costs until the worker recovers, can return to work or is medically assessed as having a disability.
2. Continue Applicable Wages: Pay the worker according to the wage-entitlement rules applying during the approved treatment period.
3. Pay Disability Compensation: Provide the applicable compensation when an occupational injury or disease results in a recognised permanent disability.
4. Pay Death Compensation: Provide compensation to eligible family members when a qualifying occupational injury or disease results in the worker’s death.
5. Report the Incident: Follow the applicable police, medical, Ministry and insurer notification procedures within the required timeframes.

What May Workers’ Compensation Insurance Cover?

Depending on the issued policy, coverage may include:

1. Medical Treatment Expenses: Eligible hospital treatment, medical consultations, diagnostic tests, medicines and other treatment arising from a covered occupational injury or disease.
2. Temporary Wage Benefits: Applicable wage payments when a covered injury prevents the employee from carrying out their work during treatment.
3. Permanent Disability Compensation: Compensation for eligible permanent total or partial disability, calculated according to applicable legal requirements.
4. Death Compensation: Applicable compensation payable to eligible beneficiaries following an employee’s death from a covered occupational injury or disease.
5. Repatriation Expenses: Certain policies may cover eligible repatriation costs following a work-related death, when expressly included.
6. Legal Defence Costs: Employers’ Liability cover may include eligible legal expenses incurred in defending a covered employee-liability claim.

What Is Employers’ Liability Cover?

Workers’ Compensation generally responds to the employer’s statutory obligations for qualifying occupational injuries and diseases. Employers’ Liability may extend protection where an employee alleges that the employer’s negligence, breach of duty or unsafe working conditions caused or contributed to the injury.

Employers should confirm whether Employers’ Liability is included automatically, provided as an extension or requires separate coverage. Limits, territorial scope and legal defence provisions should be reviewed before purchasing.

Who May Need This Insurance?

The policy may be suitable for businesses operating in sectors such as:

1. Construction and contracting
2. Manufacturing and industrial operations
3. Warehousing, logistics and transportation
4. Retail, hospitality and professional services
5. Cleaning, maintenance and facility management
6. Healthcare, education and other service businesses

Insurance requirements may arise from applicable legislation, a free-zone authority, licensing conditions, client contracts, tenders, property agreements or internal risk-management requirements.

What to Check Before Selecting a Policy:

Review these important details:

1. Declared Employees: Confirm that all eligible employee categories, occupations and work locations are correctly declared.
2. Estimated Annual Wages: Check that the declared payroll accurately reflects the workforce covered during the policy period.
3. Nature of Work: Declare construction, machinery operation, work at height, offshore activities and other higher-risk duties accurately.
4. Territorial Coverage: Confirm whether employees working at different sites or temporarily outside the UAE are covered.
5. Limits and Deductibles: Review the applicable statutory benefits, Employers’ Liability limit and any amount payable by the insured.
6. Exclusions: Check restrictions relating to undeclared employees, unauthorised work, intentional acts, contractual penalties and activities outside the declared business operations.

What to Do After a Workplace Injury:

The employer should:

1. Arrange Immediate Medical Assistance: Prioritise the injured employee’s safety and obtain suitable medical treatment.
2. Report the Incident: Notify the police, Ministry or other competent authority when required by the nature of the incident.
3. Notify the Insurer: Report the incident as soon as possible and follow the policy’s claim notification requirements.
4. Preserve Evidence: Keep photographs, witness statements, safety records and details of how the incident occurred.
5. Collect Medical Records: Retain medical reports, treatment invoices, sick-leave certificates and disability assessments.
6. Avoid Unapproved Settlements: Do not admit liability or agree to a settlement without following the insurer’s and competent authority’s requirements.

Documents Required:

The insurer may request:

1. Completed proposal or quotation form
2. Trade licence and company information
3. Employee list with occupations and nationalities
4. Estimated annual payroll or wage declaration
5. Details of business activities and work locations
6. Previous insurance-policy information
7. Claims history and workplace-injury records
8. Client contract or tender requirements, if applicable

Why Choose Al Buhaira Insurance?

Eligible businesses can access:

1. Workers’ Compensation Cover: Coverage can be considered according to the company’s workforce, payroll, activities and occupational risks.
2. Employers’ Liability Protection: Eligible civil-liability exposures may be included according to the quotation and issued policy.
3. Business Risk Assessment: The quotation can reflect employee occupations, work locations, estimated payroll and requested limits.
4. Online Quotation Request: Businesses can submit their contact and risk details through the dedicated quotation-request page.

Frequently Asked Questions: