Some UAE residents can now get 3 months of cash benefits if they lose their job – News

Some UAE residents are now eligible to receive monthly cash benefits if they lose their jobs, a senior executive confirmed to Khaleej Times. These are employees who signed up for mandatory job loss insurance when it was first available in January 2023.

These employees also have to renew their policy “immediately” to remain financially protected against job loss, he said. “Renewal of the plan is mandatory to avoid cancellation of the insurance certificate,” said Dana Kansou, manager of Dubai Insurance Strategic Partnerships, which manages the Involuntary Loss of Employment (ILOE) insurance group.

Failure to renew policies is punishable by a fine of 400 dirhams.

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Claim compensation

Among the conditions to claim compensation is that the claimant must be subscribed to the ILOE plan for at least 12 months. This means that people who registered in January 2023 are now entitled to receive compensation, Kansou told Khaleej Times.

To claim compensation, “applicants must log in through the ILO website, click ‘submit a claim’, enter their Emirates ID and a valid UAE phone number and continue with the steps to file a claim”.

Dana Kansou. — Photo supplied

Eligibility Criteria

The plaintiffs must prove that they did not resign and were not fired for disciplinary reasons. They must present the claim within 30 days following the date of termination of the employment relationship.

They cannot claim compensation if they leave the country or get a new job.

At the time of filing the claim, the employee must present the dismissal document indicating the date and reason for unemployment.

Monetary benefits

Once the claim is submitted, the insurance company must transfer the compensatory amount to the insured’s account within two weeks.

Compensation will be paid from the date on which the applicant becomes unemployed. This will be done for three months or until they find another job, whichever comes first.

The amount is calculated at a rate of 60 percent of the average basic salary during the six months prior to unemployment.

Claim Limit

The maximum benefit for any claim is three months. If an employee exhausts the maximum claim limit, the insurance certificate is considered canceled.

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