Why does life insurance matter for Indian workers in the UAE?

The United Arab Emirates (UAE) has introduced a new life insurance plan specifically tailored for blue-collar Indian workers, effective from March 1. The Life Protection Plan (LPP), announced by the Indian Consulate in Dubai, aims to provide financial support to the families of deceased workers.

Here’s a breakdown of what the Life Protection Plan entails:

• Coverage and Premiums: The Life Protection Plan is accessible with annual premiums ranging from Dh37 (approximately Rs 834) to Dh72 (about Rs 1,623) for individuals aged 18 to 70 years.
• Compensation: In the unfortunate event of a worker’s demise due to an accident or natural causes, beneficiaries stand to receive compensation of up to Dh75,000 (approx Rs 16,90,922), depending on the chosen premium. Additionally, the initiative includes a Dh12,000 (about Rs 2,70,547) coverage for repatriating the insured employee’s body.
• Disability Coverage: The insurance package extends to cover permanent complete or partial disability resulting from accidents.

Here’s a breakdown of the annual premiums and associated benefits:

• Dh72 premium: Compensation of Dh75,000
• Dh50 premium: Compensation of Dh50,000
• Dh37 premium: Compensation of Dh35,000

Why Was it Needed?

The UAE is home to approximately 3.5 million (35 lakh) Indians, with 2.27 million (22.7 lakh) engaged as blue-collar workers. While many companies in the UAE provide health insurance and compensation for work-related injuries, there was no mandatory coverage in case of natural death, prompting the need for the Life Protection Plan.

To address this gap, the Indian Consulate in Dubai facilitated discussions between major UAE-based companies recruiting Indian blue-collar workers and insurance service providers – Gargash Insurance Services LLC and Orient Insurance PJSC. This collaborative effort resulted in the formulation of an insurance plan that covers both natural and accidental deaths of workers.

Consul General of India in Dubai, Satish Sivan, emphasized the welfare of the Indian community, stating, “The welfare of the Indian community remains our utmost priority.” He encouraged companies to consider subscribing to the Life Protection Plan, highlighting the large number of natural death cases among workers and the necessity to provide financial benefits to the families of the deceased.

Statistics on Indian Worker Deaths:

In 2022, out of a total of 1,750 deaths in Dubai, 1,100 were workers. The press release noted that more than 90 percent of these deaths were attributed to natural causes.

Indian government data from 2019 to 2021 revealed that the highest number of Indian worker deaths occurred in Gulf Cooperation Council (GCC) member countries, including Bahrain, Kuwait, Oman, Qatar, the UAE, and Saudi Arabia. A report in 2022 by human rights organizations highlighted the alarming statistic that 10,000 migrant workers from South and Southeast Asia die annually in Gulf countries.

The conditions faced by low-paid migrant workers, including exposure to health risks such as heat stress, poor occupational health and safety practices, and abusive working conditions, underscore the importance of initiatives like the Life Protection Plan to provide financial security to their families in case of unforeseen circumstances.