UAE’s new job loss insurance adds to expat employees’ safety net from January 1

UAE’s new job loss insurance adds to expat employees’ safety net from January 1

Dubai: Employees in the UAE can get themselves some additional income protection from today, with the ambitious Involuntary Loss of Employment (ILOE) scheme going live. Taken together with the mandatory contributions that employers have to make towards their staff’s gratuity schemes, the new insurance cover provides employees that additional safety net if hit by a sudden loss of their job. Crucially, the ILOE policy assures them of funds to cover the first three months of the job loss, without having to dip into their gratuity payments. More so, if the gratuity needs to be used to pay off any outstanding loans the individual may have. This will become particularly useful as the individual works on alternate plans for his/her immediate future. “This scheme will not replace any other law or coverage,” said a spokesperson for Dubai Insurance. “This is a unique standalone insurance scheme.” Dubai Insurance is the authorized insurer to issue ILOE policies on behalf of the ILOE Insurance Pool. No other insurer can issue this policy. “The subscription will start as of January 1, 2023.” UAE Nationals and expats come under the ILOE cover. If a job loss happens, compensation will be paid to the individual within two