What Every Employer Should Know About workmen compensation insurance policy


Running a business in the Emirates is exciting, but it also carries a legal and moral duty to protect the people who build that success – your employees. One of the core protections is workmen compensation insurance. In this guide we break down what it covers, the regulations that govern it in Dubai and the wider UAE, how much it costs, and why getting a policy online makes compliance easier than ever.


Why do your business need workmen compensation insurance policy

Financial Security
Financial Security

Workmen Compensation Insurance provides financial protection for your business by covering medical expenses and lost wages if an employee is injured on the job.

Legal Compliance
Legal Compliance

Ensures your business complies with legal requirements, helping you avoid penalties and legal troubles related to workplace injuries.

Employee Welfare
Employee Welfare

Demonstrates your commitment to the well-being of your employees, boosting morale and fostering a safer work environment.

Risk Management
Risk Management

Mitigates the financial impact of workplace accidents, allowing your business to focus on growth and productivity.

How does workmen compensation benefits the employees?

Construction Family

Financial Security for Workers and Their Families In the event of a work-related death, the worker's family receives a cash amount equal to up to 24 months of the basic wage, offering essential financial support during a difficult time

Disabled

Addressing Permanent Total Disability If a worker suffers permanent total disability from a work-related incident, this benefit offers financial support and stability during a life-changing time

Injured

Support for Temporary or Total Disability For cases of temporary total disability, where an employee is unable to work due to a work-related accident, compensation covers lost wages.

Choose Insurancehub for Workmen Compensation insurance, we take care of

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Why Workmen Compensation Insurance Matters in the UAE


  • Humanitarian responsibility – medical costs for workplace injuries can cripple a family’s finances if the employer is not covered.

  • Regulatory compliance – authorities can fine, suspend operations, or deny license renewals for companies that fail to insure their workforce.

  • Talent retention – skilled workers are more likely to join and stay with firms that demonstrate genuine care for their safety and well-being.

  • Business continuity – compensation payouts, legal fees, and downtime from workplace accidents can drain cash flow without insurance..

    • What the Law Says – Dubai and Federal Requirements


    The cornerstone legislation is UAE Federal Law No. 8 of 1980 (Labour Law). Articles 144-150 outline an employer’s obligation to pay compensation for workplace injuries or occupational diseases, including:


  • Full medical treatment until recovery or disability is declared.

  • A lump-sum death benefit of AED 18,000 minimum (24 months’ basic salary, up to AED 35,000) to the family of a deceased worker.

  • Permanent disability benefits proportionate to the degree of impairment..

    • Dubai Free Zones such as JAFZA, DIFC, and DMCC have parallel regulations, but all broadly align with the federal standard. Proof of a valid workmen compensation insurance is usually required to obtain or renew trade licenses in these jurisdictions.


    Key Coverages in a Standard Policy


    A typical workmen compensation insurance policy issued in the UAE includes the following:


  • Medical expenses – hospital bills, surgery, medication, physiotherapy.

  • Death benefit – statutory lump sum to legal heirs

  • Permanent total disability – up to 24 months’ salary.

  • Permanent partial disability – graded payments based on severity.

  • Temporary disablement – weekly wage for time off work.

  • Repatriation costs – airfare and embalming if the employee must be sent home.

  • Legal liability – covers employer’s defense costs if sued by the worker or family..

    • Workmen Compensation Insurance Prices – 2025


    Premiums vary by industry risk, payroll size, claims history, and safety standards. Below is a ballpark range:


    Industry Annual Premium per Worker (AED) Typical Excess
    Office / IT 150 – 250 Nil excess
    Retail & Hospitality 200 – 320 AED 250 per claim
    Construction 450 – 800 AED 500 – 1,000 per claim
    Oil & Gas (Onshore) 950 – 1,400 AED 2,500 per claim


    Buying Your Policy Online – 3-Step Process


    Getting covered no longer means endless paperwork. With Insurancehub.ae you can secure workmen compensation insurance online in minutes:


  • Fill a quick form – basic company details, number of employees, nature of work.

  • Compare instant quotes – our engine scans 50+ Central Bank-approved insurers.

  • Checkout & receive e-policy – pay securely and download your certificate, accepted by all major free zone authorities.

    • Why Choose Us for Workmen Compensation Online in UAE?


    Our insurance comparison portal features top-rated providers across Dubai, Abu Dhabi, and the UAE. We help you find policies that fit both your needs and budget—fast. By comparing quotes from multiple insurers, you can save significantly on your workmen compensation insurance premium


    We also offer exclusive deals and discounts to make your coverage more affordable. Buy online with confidence!


    What’s Covered?


  • Work-related death: 24 months’ basic wage to the family.

  • Permanent total disability: Same benefit as death coverage.

  • Temporary total disability: Full wage for 6 months, half for the next 6

  • Medical expenses: Paid by the employer at approved centers.

  • Repatriation expenses: Covers transport of mortal remains.

  • Add-on: Employer’s liability coverage.

    • Ready to Protect Your Team?


    Comply with the law, safeguard your employees, and shield your balance sheet. Get your workmen compensation insurance Dubai quote now:


    Need guidance? Call our expert advisors at 800-HUB (482) or leave your details – we’ll craft the right policy at the best price today.

    Endnote

    Workmen compensation insurance is good your employees welfare.

    Talk to our Advisor