JULY 2018

GARGASH INSURANCE INSIDER

Insurance policies for maids in the UAE – Medical & Employer’s Liability Insurance

(Insurance covers for domestic workers)

In UAE, it is common to have cleaners, cooks, drivers, babysitters, caretakers etc in the household. These domestic workers take full care of the family and the house and sometimes become an integral part of the family. It is important that they are taken care of. Also, as an employer, one has certain basic responsibilities and liabilities towards his/her domestic workers. What are mostly overlooked are the potential expenditures and financial liabilities that can arise due to their illness or accidents. Insurance covers that can help to reduce this burden are available for domestic workers. In the following paragraphs, we would be taking about two such covers.

Health/Medical Insurance for domestic workers:

Health Insurance is vital, as it is necessary to have the domestic workers in peak physical form so that they can carry out all the tasks necessary to keep the home running smoothly. In UAE, it is the responsibility of the employer to provide for costs in treatment of sickness. Domestic workers are not exempt from availing compulsory medical insurance in Dubai. It is the duty of the employer to take a medical insurance on behalf of their domestic workers to avoid facing fines (AED 500 per month). DHA has provided license to certain health insurance companies to provide Essential Benefit Package (EBP) in the UAE. EBP is the package for workers making less than AED 4,000 per month and is the minimum insurance package a sponsor should provide for their domestic workers. The cost will usually be AED 550 (terms and conditions apply)..

Employers Liability towards domestic workers :

An employer can be held legally liable for an injury, death or illness of his/her domestic employee during the course of employment. In such scenarios, an insurance cover, if purchased already, can financially assist you in paying the amount (subject to limits available in the policy) awarded by the labour court and also legal expenses to defend yourselves. Employer’s Liability Insurance is available under certain home insurance policies up to a specified limit. The policy pays an amount which you become legally liable to pay in respect of injury, illness or disease to your domestic servants. The limit differs from insurer to insurer. The policy will also pay for death or disability of your domestic servants irrespective of you being held liable by the labour court. The amounts are fixed and will be mentioned in the policy. Medical and Repatriation expenses can also be covered subject to prior approval of your insurance company.

Legal Liability towards your guests or other third parties :

It might so happen that your maid negligently causes damage or injury to others such as your guests, neighbors etc. For example, accidental fire triggered by the maid while cooking or forcing the pram on a car while moving your child. Such events can lead up to a situation wherein you are held financially liable for the negligence of your domestic workers. Such liabilities can be covered under your home insurance policy. The legal liability section under your home insurance policy will cover any legal liability which you or any member of your household (including maids) becomes legally liable to pay in respect of accidental property damage or accidental bodily injury to any person (third party). Should you have further questions or doubts, please get in touch with one of our dedicated representatives @ 800-GARGASH or drop by our office to get a personal consultation.