In the UAE, job loss insurance provides financial support to individuals who unexpectedly lose their employment. This coverage helps such individuals manage essential expenses — rent, loan payments, daily living costs, and more — while they search for a new job.
With rising living costs and economic fluctuations, job loss insurance offers peace of mind and stability during challenging times. Designed to provide temporary income protection, it allows individuals to maintain their financial commitments without immediate stress.
Let’s understand job loss protection insurance in UAE better and explore its benefits, eligibility requirements, and all other key details.
What is Job Loss Insurance in UAE?
Job loss insurance in the UAE is an income protection plan that financially supports unemployed individuals. Note that the reasons for unemployment could be economic downturns or restructuring of the organisation.
This type of insurance is more than just a financial support system — it’s an initiative that significantly improves the labour market’s resilience and adaptability.
Understanding the Purpose of Job Loss Protection Insurance in UAE
Here are the key purposes of job loss protection insurance in UAE —
Income protection during an individual’s unemployment period, helping them meet their basic needs
Enhancing citizens’ competitiveness in the labour market by ensuring financial security and decreasing the financial burden that comes with job loss
Contributing to the comprehensive goal of creating a competitive environment by drawing international talent’s attention
Key Benefits and Features of Best Job Loss Insurance in UAE
Job loss insurance policies in UAE pay monthly benefits (up to certain limits) if you lose the income source due to involuntary unemployment.
Listed below are their key benefits —
Involuntary Loss of Employment (ILOE)
The policyholder can get a predetermined portion of the gross monthly income or a maximum cap limit, whichever is lower. This benefit is paid over and above the compulsory government ILOE insurance benefits from the government.
Hospital Cash
This is a daily benefit paid for completing every 24 hours beyond the excess period when you stay as an in-patient at a hospital in the UAE.
Accidental Death Benefit
In case of accidental death due to physical injury during the policy tenure, the plan will pay the predetermined sum assured to the policyholder’s beneficiary. The amount is paid if only the policyholder passes away within 180 days of the accident and is a direct result of the sustained injuries.
Top Job Loss Insurance Companies in the UAE
Here is a list of the major companies offering job loss protection insurance in the UAE —
Dubai Insurance Company
Al Ain Ahlia Insurance Company
National General Insurance Company
Sukoon Insurance (To Be Confirmed)
Abu Dhabi National Insurance Company
Emirates Insurance Company
Orient Insurance
Orient UNB Takaful Company
Inclusions and Exclusions of Job Loss Insurance in UAE
Inclusions
Unemployment
Accidental death
Hospital cash
Exclusions
War or terrorism
Active war engagement
Unemployment due to participation in unlawful activities
Nuclear risks
Suicide
Eligibility Criteria to Participate in Job Loss Insurance in Dubai
Emiratis and residents working in government and private sectors are eligible for job loss protection insurance in UAE. It’s worth mentioning that the plan is not available for business owners, investors, and temporary or part-time workers.
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