UAE approves low-cost insurance scheme for immigrant Work Visas

UAE Cabinet has approved low-cost insurance scheme for immigrant Work Visas that will cost just 60 dirham/Rs 1, 100 annually per worker to the employers. The new scheme will replace the system of bank guarantee in the mainland.

The current rules mandate that firms in mainland UAE must be registered with MOHRE - Ministry of Human Resources and Emiratisation. They are required to deposit 3,000 dirhams/Rs 50,000 as bank guarantee for immigrant Work Visas.

The bank guarantee system will now be replaced by the low-cost insurance scheme. This will incur just 60 dirhams to the employers per worker. The coverage will be up to 20,000 dirhams/Rs 3.7 lakh in case of unpaid salary. It will also cover allowances, work-related injuries and return tickets.

The new insurance scheme will ease financial burdens for UAE firms that hire overseas workers, as quoted by the Times of India.  Employers will also be able to recover funds deposited under the bank guarantee scheme with MOHRE.

Immigration industry experts have said that there is a gradual shift in the type of immigrant workers from India arriving at the UAE for jobs. The GCC labor market scene was dominated by blue-collar workers from India. This includes Drivers, Plumbers, Electricians, Carpenters, and Laborers. In the recent years, increased numbers of white-collar workers from India are expressing interest in Gulf jobs.

Meanwhile, the suspension of the hiring of overseas nationals in 87 occupations has been extended till 2018 December by Oman. Industry experts are of the view that this is a temporary situation. The suspension is also applicable only to fresh job seekers, they add.

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