Workmen Compensation (WC) - Overview¶

Product Code¶

5030 - Workmen Compensation

Coverage Basis¶

Workmen Compensation insurance is mandatory under UAE Federal Law No. 8 of 1980 (UAE Labor Law). It provides coverage for:

Work-related injuries and accidents
Occupational diseases
Death or disability arising from employment
Medical expenses for work-related injuries
Compensation as per UAE labor law

Key Features¶

Mandatory Coverage¶

Required by Law - All UAE employers must provide WC insurance
Labor Law Compliance - Meets UAE Federal Law requirements
MOL Requirements - Required for labor card processing
All Employees - Covers all employees regardless of nationality

Wage-Based Calculation¶

Premium calculated on annual wage roll
Rates vary by occupation/industry risk
Covers specified number of employees
Annual wage declaration required

Coverage Components¶

What's Covered¶

Death Benefits: - Compensation to dependents - Funeral expenses - Repatriation of remains

Permanent Disability: - Total permanent disablement - Partial permanent disablement - Compensation based on disability percentage

Temporary Disability: - Wage replacement during recovery - Medical treatment period - Return to work support

Medical Expenses: - Treatment costs for work injuries - Hospital and surgery costs - Medication and rehabilitation - Physiotherapy and ongoing care

What's Not Covered (Typical Exclusions)¶

Non-work-related injuries
Willful self-injury
Intoxication or drug use
Criminal acts
Injuries during unauthorized activities

Who's Covered¶

Covered Employees¶

All employees on company payroll
Full-time and part-time workers
Skilled and unskilled labor
Administrative and operational staff
All nationalities

Wage Roll Declaration¶

Includes: - Basic salary - Housing allowance - Transport allowance - Other regular allowances

Calculation: Total annual wages for all employees

Benefits Structure¶

Death Compensation¶

Fixed amount as per labor law
Paid to legal heirs/dependents
Funeral and repatriation expenses

Permanent Total Disablement¶

100% compensation
Lump sum payment
Based on last drawn wages

Permanent Partial Disablement¶

Percentage-based compensation
According to disability schedule
Medical assessment required

Temporary Total Disablement¶

Daily/monthly wage compensation
During treatment period
Until return to work or permanent assessment

Medical Expenses¶

Actual costs incurred
Hospital bills
Doctor fees
Medicines and treatment

Industry Classifications¶

Low Risk Industries¶

Examples: - Offices and administrative work - Retail and trading - IT and technology - Professional services

Characteristics: Lower premium rates

Medium Risk Industries¶

Examples: - Light manufacturing - Warehousing and logistics - Hospitality and restaurants - Maintenance services

Characteristics: Standard premium rates

High Risk Industries¶

Examples: - Construction and building - Heavy manufacturing - Oil and gas operations - Transportation and heavy vehicles

Characteristics: Higher premium rates

Mandatory Requirements¶

Required Information¶

Trade License - Valid UAE trade license
Employee List - All employees to be covered
Wage Roll - Total annual wages
Occupation Details - Job categories and risk levels
Business Activity - Type of operations

Annual Declaration¶

Wage roll must be declared annually
Employee count updates required
Premium adjustment based on actual wages
Mid-term adjustments for major changes

Coverage Period¶

Standard Period: 12 months (annual policy)

Start Date: Usually aligned with business fiscal year

Renewal: Annual renewal required for labor law compliance

Regulatory Compliance¶

UAE Labor Law Requirements¶

Mandatory for all employers
MOL (Ministry of Labor) compliance
Required for labor card issuance
Required for work permit renewals

Penalties for Non-Compliance¶

Fines from MOL
Labor card processing delays
Work permit issues
Business license complications

Coverage Extensions (Optional)¶

Employer's Liability¶

Additional protection beyond statutory benefits
Common law claims
Extended coverage limits

Extended Benefits¶

Enhanced medical limits
Additional disability benefits
Repatriation coverage extensions

Claims Process¶

Immediate Actions¶

Report injury immediately to employer
Seek medical treatment
Document incident details
Notify insurer within 24-48 hours

Documentation Required¶

Accident/injury report
Medical reports and bills
Police report (if applicable)
Witness statements
Employment confirmation

Settlement¶

Medical bills: Direct settlement or reimbursement
Disability/death: After assessment and documentation
Wage compensation: Monthly during disability period

Next Steps¶

Quote Requirements - Information needed for WC quote
Premium Calculation - Wage-based rating
Endorsements - Wage roll adjustments
Commission - Broker commission structure

Conditions & Exclusions¶

Standard Exclusions¶

What's NOT Covered:

Non-Work-Related Injuries
Injuries outside working hours (unless in employer's premises)
Injuries during personal activities
Commuting accidents (home to work)
Intentional Self-Harm
Willful self-injury
Suicide or attempted suicide
Self-inflicted wounds
Intoxication & Substance Abuse
Injuries while under influence of alcohol
Drug abuse related injuries
Violation of safety rules due to intoxication
Criminal Acts
Injuries during criminal activities
Illegal acts by employee
Violation of laws
Pre-Existing Conditions
Illnesses existing before employment
Aggravation of pre-existing conditions (unless work-related)

Business Types We DON'T Insure¶

Extremely High-Risk (Declined): - Explosive manufacturing - Chemical weapons or military ammunition - Nuclear facilities (radiation exposure) - Deep-sea diving operations - Underground mining

High-Risk Activities (Special Terms Required): - Oil & gas drilling - High-rise construction (>50 floors) - Heavy industrial manufacturing - Ports and shipyards - Aviation maintenance

Employee Categories¶

Not Covered (Standard Policy): - Casual labor (daily wage, no contract) - Illegal workers / visa violators - Employees not on payroll - Contractors (need their own WC) - Volunteers (unless declared and premium paid)

Geographic Limitations¶

Standard Coverage: - UAE territory only - During work-related travel within UAE

Extended Coverage (Additional Premium): - GCC countries during business travel - Specific overseas assignments

Not Covered: - Work in war zones - Assignments in sanctioned countries - High-risk international locations

Wage Roll Conditions¶

Declaration Requirements: - Accurate wage roll declaration mandatory - Includes all regular employees - False declaration voids policy

Minimum Wage Roll: - Typically AED 50,000 annual minimum - Smaller businesses may be declined

Maximum Wage Roll: - No upper limit, but large employers need reinsurance - >AED 50M annual wages needs special arrangement

Underwriting Declinations¶

We Will NOT Quote if: - More than 3 major claims in last 3 years - Poor safety record - Repeated labor law violations - Outstanding MOL (Ministry of Labor) issues - Unsafe working conditions - No safety measures in place

Industry-Specific Conditions¶

Construction & Building: - Must have safety officer for >50 employees - Safety equipment mandatory - Regular safety audits required

Manufacturing: - Machinery guards mandatory - Fire safety systems required - First aid facilities on-site

Offices & Services: - Lower risk, standard terms - Minimal safety requirements

Special Conditions¶

Medical Treatment: - Must use approved hospitals/clinics - Emergency treatment: Any facility - Non-emergency: Network hospitals preferred

Compensation Limits: - As per UAE Labor Law - Cannot be less than statutory requirements - Additional benefits subject to approval

Repatriation: - For death cases only - To home country - Reasonable expenses covered

Claims Conditions¶

Immediate Notification Required: - Serious injury: Within 24 hours - Death: Immediately - Minor injury: Within 48-72 hours - Late notification may affect claim

Documentation Mandatory: - Accident report - Medical reports - Police report (for major incidents) - Employer certification

Critical for Portal: Validate business activity against high-risk list. Check employee count and wage roll reasonableness. Flag safety record issues.