Dubai: A newly introduced insurance scheme in the UAE offers financial support to families of Indian blue-collar workers, providing coverage of Dh35,000 for a premium as low as Dh32 in the event of natural or accidental death.

The Consulate General of India in Dubai coordinated between key employers of Indian blue-collar workers and insurance providers, Nexus Insurance Brokers and Dubai National Insurance (DNI), to establish an affordable package.

On Wednesday, Satish Kumar Sivan, Consul General of India in Dubai, said, "For our labour-focused initiative as far as insurance is concerned, we had worked with Orient and Gargash insurance to put together a package of life insurance programme for labourers, at a very nominal premium insurance policy. But it gives very critical support to the families of laborers who unfortunately pass away, covering the natural death scenarios, covering deaths which happen not just in the UAE, not just when they are at work, but also wherever they are in the world, it also covers partial and full disability.”

He stressed that these cover the repatriation of mortal remains, which is a critical element for the deceased labourers' family members to have a last glimpse of the departed family member.

"This covers repatriation of mortal remains anywhere in the world, partial and full disability at a nominal fee, which is Dh32. Dubai National Insurance has come to us with another proposal, which is Dh32 for a coverage of 35,000. The consulate is just the catalyst; we want our workers to benefit from it. Also, now (in this insurance cover) up to Dh12,000 is given for transporting mortal remains; earlier, it was Dh10,000."

The initiative gained momentum last year after it was observed that most companies provide insurance coverage for their employees under Health Insurance and Workers' Compensation, which covers work-related injuries and deaths.

However, there was no mandatory insurance policy for natural deaths, leaving the legal heirs or dependents of deceased employees without any compensation in such cases.

Launched on March 1, 2024, the Life Protection Plan for Indian workers in the UAE provided compensation of up to Dh75,000 for families with an insurance premium of Dhs 72 per year, in the event of the employee's death, whether due to accidents or natural causes and partial and full disability is covered.

“So, we encourage employers to look at this proposal positively because it will benefit your members, and it's quite a competitive cost that’s being offered. Around 7,000 workers had shown interest in this (previously).” added Sivan.

Chandrasekhar, senior Executive Consultant at Nexus Insurance Brokers LLC said, "This product is designed for Indian blue-collared construction workers.  It can be extended to other nationalities. It has a premium of Dh32 per annum with a cover of Dh35,000. Apart from death, we cover disabilities and also the transfer of mortal remains to India up to Dh12,000. This is a one-year premium. The premium can go up or down depending on several factors, including the claims and how the programme is running."

He added, "We want to expand this to other communities and other nationalities as well with packages like Dh50,000 cover for Dh50, Dh75,000 for Dh75, Dh100,00 for Dh100 per annum."

Insurance providers reiterated that the designed program considers employers' budget constraints, which has caused them to set the premium at an exceptionally low rate.

Sanghamitra Banerjee, manager-life, Dubai National Insurance, said, “The program we have designed considers employers' budget constraints, which is why we have set the premium at a very low rate. Our product offers a lower sum insured than standard group life benefits available in the market. However, considering employers' budgets, we have ensured that the premium remains highly competitive. Our goal is not to profit from this product; rather, we view it as a CSR initiative to give back to society.”

Meanwhile, the Indian mission is also launching a free, multilingual Online Digital Literacy Programme for Indian workers in collaboration with KMCC.

Registered workers can attend these classes via Google Meet during their free time, based on their skill levels.

Sivan added, “Our goal is to equip our labourers with essential skills. KMCC approached us, highlighting the rising cases of cyber fraud and the need to educate workers about AI and its real-life applications. As a result, we have developed a comprehensive eight-week program.

“The first module focuses on cyber security, covering the fundamentals of cyber safety and fraud protection over the initial four weeks. The following four weeks will introduce more advanced concepts, providing workers with a strong foundation in AI and its practical applications.”