Lost Job? You can Get 3 Months of Cash Benefits

UAE residents who enrolled in the mandatory job loss insurance scheme introduced in January 2023 are now entitled to three months of cash benefits if they lose their jobs.

"These employees must promptly renew their policy to ensure continued financial protection in the event of job loss, a media report said, quoting Dana Kansou, the manager of Strategic Partnerships at Dubai Insurance, overseeing the Involuntary Loss of Employment (ILOE) insurance pool."
These employees must promptly renew their policy to ensure continued financial protection in the event of job loss, a media report said, quoting Dana Kansou, manager of Strategic Partnerships at Dubai Insurance which oversees the Involuntary Loss of Employment (ILOE) insurance pool.

Renewal of the policy is mandatory to avoid cancellation of the insurance certificate, she added.

Failure to renew the policy may result in a Dh400 fine.

To be eligible for compensation under the ILOE scheme, claimants must have subscribed to the scheme for at least 12 months, making those who joined in January 2023 eligible for compensation.
To initiate a claim, claimants need to log in to the ILOE website, submit the necessary details and follow the outlined steps.

Eligibility criteria for compensation include proving that the claimant did not resign or face termination due to disciplinary reasons. Claims must be submitted within 30 days of the termination of the employment relationship.

Notably, individuals leaving the country or securing a new job during this period are not eligible for compensation.

Monetary benefits are calculated at 60 per cent of the average basic salary over the six months preceding unemployment. The maximum benefit per claim is three months with the compensatory amount transferred to the insured's account within two weeks of filing the claim.

Once the three-month claim limit is reached, the insurance certificate is considered cancelled. To make a new claim, individuals must subscribe for another 12 consecutive months.

Eligible employees are receiving reminders to renew their policies and renewal can be done through various channels, including the ILOE website, exchange and business centres, telecom partners, kiosks, and banks and ATMs.

The ILOE scheme, mandatory for Emiratis and expatriates in federal and private sectors, has two categories based on salary levels, each with corresponding insurance premiums and compensation limits.

The scheme does not apply to certain exempted categories, such as investors, domestic helpers, temporary contract workers, juveniles, and retirees entitled to a pension.

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