According to the Ministry of Human Resources and Emiratisation, the alternative insurance system (bank guarantee) is optional. Employers make a choice between depositing a bank guarantee of AED 3,000 for every worker who works for his bank guarantee or transferring to the insurance system, A insurance policy for each worker of AED 120, confirming that the newly approved insurance system is on the entitlements of workers and does not cover health insurance.
This came during a meeting organized by the Ministry of Assistant Undersecretary for Communication and International Relations, Dr. Omar Al Nuaimi, with the public via social media yesterday to respond to queries about "retrieving (bank guarantee) and moving to the insurance system.
Al Nuaimi explained that «the new insurance system is on the entitlements of workers and help workers, so that the insurance covers a range of benefits, including: end of service benefits and late wages, and the return ticket to his home, and the cost of treatment of work injuries, and the transfer of the body of the worker in case of death», The maximum amount paid by the insurance companies to cover these receivables is 20 thousand dirhams per worker, and more than this amount, the claimant can through the court.
He pointed out that the Ministry has announced the launch of the system of insurance for the entitlements of private sector workers and auxiliary workers in exchange for the «bank guarantee», which was approved in 2001, which was intended to deposit the employer 3000 dirhams in any bank, for use by the Ministry to pay the worker's late salaries, Payment of a travel ticket or the end of service benefits in the event that the employer fails to pay for it.