Job Loss Insurance- The Only Way to Secure Your Future in UAE

Job security is a critical concern for many professionals, and unexpectedly losing a job can have significant financial and emotional impacts. Recognizing this, the UAE government introduced the Unemployment Insurance Scheme, also known as Job Loss Insurance, to provide financial stability to individuals who lose their jobs involuntarily. This scheme aims to offer a safety net, ensuring that workers have some financial support while they search for new employment opportunities.

The UAE’s Involuntary Loss of Employment (ILOE) Insurance Scheme is a significant step towards providing financial security to employees in case of unexpected job loss. This article provides a detailed overview of the Job Loss Insurance Scheme in the UAE, covering its eligibility criteria, claims submission process, benefits, plans, and application process.

What is Job Loss Insurance?

Job Loss Insurance is a mandatory scheme in the UAE designed to provide financial assistance to employees in the event of involuntary unemployment. The scheme is aimed at protecting workers in the private and public sectors, ensuring they can sustain themselves financially while looking for new employment.

The insurance scheme was implemented as part of the UAE’s efforts to enhance the welfare of its workforce and is managed by various insurance providers under the supervision of the Ministry of Human Resources and Emiratisation (MOHRE).

Eligibility Criteria

Although Job Loss Insurance has been mandatory since January 01, 2023, the employees have to meet certain criteria to be eligible for any of the given insurance plans.

Employment Status

• The scheme applies to all employees in the private and federal sectors, including those working in free zones and semi-government entities.
• Domestic workers, temporary contract employees, investors (owners of the establishment), self-employed individuals, and retirees receiving a pension are not eligible.

Reason for Job Loss

• The Job Loss Insurance coverage applies only to those who have lost their jobs due to circumstances beyond their control, such as economic downturns, company restructuring, or layoffs.
• Employees who resign voluntarily, are dismissed for disciplinary reasons, or have committed fraudulent acts are not eligible to claim benefits. The employees losing their jobs due to any of the below-given reasons are not eligible for Job Loss Insurance claims:

1. Declared or undeclared war, riots, invasion, civil war, civil disorder, armed rebellion, revolution, insurrection, and any such act of an enemy.
2. Discharge of pollutants, radioactive, toxic, explosive, or any other dangerous material.
3. Biological or chemical pollution that causes terrorism or arises from terrorist activities.
4. An action by the UAE government that leads to expropriation or nationalization of the employer’s facility.

Duration of Employment

• The employee must have been employed and continuously covered under the insurance scheme for at least 12 months before the job loss. Also, there should be no interruption in the scheme for three consecutive months.
• The insured employee must have paid all the insurance premiums within due time.

Residency Status

• The employees having a valid UAE residence visa are eligible to apply for the Job Loss Insurance Scheme.
• Employees with canceled Emirates IDs are not eligible to apply for the scheme.

Claim Period

The claim must be filed within 30 days of the job loss, and the employee should not have a new job during this period.

Apart from these conditions, the employees must meet the following criteria to be eligible for subscription to Job Loss Insurance.

• There should be no existing complaint against the employee applying for a Job Loss Insurance subscription.
• No compensation will be admissible to the person who provides fake information in the claim.
• Only those workers legally present in the UAE are eligible for submission of claims.

Job Loss Insurance Plans and Coverage

Currently, there are two plans for Involuntary Loss of Employment scheme (ILOE) for private or public sector employees in the UAE:

Plan A

Coverage: Employees earning a basic salary of AED 16,000 or less per month.

Premium: A Monthly Premium of AED 5

Benefits: The subscribers will receive 60% of the average basic salary for up to three months with a maximum limit of AED 10,000.

Plan B

Coverage: Employees earning a basic salary of more than AED16,000 per month.

Premium: A Monthly Premium of AED 10 will be payable.

Benefits: The subscribers will receive 60% of the average basic salary for up to three months with a maximum limit of AED 20,000.

How to Subscribe for Job Loss Insurance?

All private as well as public sector employees must subscribe to Job Loss Insurance soon after getting a job in the UAE. The subscription process is straightforward, and anyone can subscribe easily. The process is as under:

Documents for UAE Job Loss Insurance Claims

The list of documents required for submission of Job Loss Insurance UAE claims. Remember to attach these documents with the application form in PDF format.

How to Submit Job Loss Insurance UAE Claims?

After you collect all the required documents, it’s time to apply for Dubai job loss insurance claims. The detailed process is as follows:

• Visit the official website of Involuntary Loss of Employment (ILOE) here.
• Navigate to the “Submit Claim” tab on the main page.
• Clicking it will open a new page with an application form.
• Fill out the application form and attach all the required documents in PDF format.
• Now, apply and ILOE will start verification of the documents. The timeframe for this verification may be different depending on the type of application.
• You will be asked to submit a travel report if there is no issue with the documents. Remember to generate the travel report before visa cancellation. You can get travel reports from GDRFA or the Dubai Now App.
• Attach the generated travel report on the ILOE platform.
• You will receive a notification within a few days saying that your Job Loss Insurance Claim has been approved.
• Within two weeks, the compensation amount will be credited to the applicant’s account.

Job Loss Insurance Policy Renewal

Do you know that the employees who do not subscribe to the ILOE policy or fail to renew their policy have to pay a fine of Dh400? Therefore, it is mandatory to subscribe to a policy or renew it if you are an old subscriber. You will also receive a renewal notification before its expiry. The renewal process details are as follows:

• Visit the ILOE insurance website.
• Navigate to the Subscribe/Renew button on the main page.
• Under the individual category, a new web page will open with the options Private Sector, Federal Government Employee, and Non-Registered Employee.
• Select a category and press the “Confirm” button.
• Here, you will be required to sign in either through the OTP sent to your registered mobile number or use your old account.
• After logging in, you will be given the option to renew your policy. Remember to confirm all your details before pressing the button.
• Pressing the confirmation tab will lead you to the payment page. Enter your card details and proceed with the payment.
• Upon successful payment, your ILOE policy will be renewed for one year.