Workmen’s Compensation or Group Life: which to choose and why?

Workmen's Compensation Insurance

Workmen’s compensation and group life insurance policies are essentially rewarded packages that are beneficial for both the employees and employers as it helps employees to replace income at minimal cost to employers at the time of need. We will describe the benefits of both workmen’s compensation and group life insurance and highlight the differences so you are able to assess what reward package makes the most sense for your company.

Workmen's Compensation Insurance

What is Workmen’s Compensation Insurance?

Workmen’s Compensation Insurance also known as Employer’s Liability insurance is a liability policy to compensate employees for bodily injury or death due to accidents or occupational disease arising out of and during the course of employment.

In the UAE, the Federal Law has mandated employers to provide employees with medical, disability and death benefits for any accident, injury or death caused at or by the workplace. Without adequate cover, your company may be liable for large payouts encompassing medical, loss of earnings and related costs.

At the time of a claim, the payout of the policy depends on the medical bills and other claim documents submitted to the insurance company subject to the agreed terms and conditions stipulated in the policy.

What is Group Life Insurance?

Group life insurance policy is a life insurance product to cover a group of people under a single contract. Just like workmen’s compensation policy, in a group insurance contract, the policy owner is the employer or an organization, and the policy covers employees or members of that particular organization.

A group life Insurance differs from workmen’s compensation as it provides a lump sum payment, as opposed to payments based on claims with specific limits, in the event of an employee’s death or permanent disability due to accident or sickness.

While not mandated by law in the UAE, group life insurance is one of the best ways in which an employer can instill a sense of security in the minds of the employees. Most employers often pay for the basic group life insurance themselves without burdening the employees. If the employees want additional benefits like critical illness coverage, then they may pay extra for the supplemental benefit.

Another advantage of group life insurance is that it is not territorial like workmen’s compensation insurance. Employees are eligible for the coverage worldwide, including their home country. In addition, the group life covers employees 24 hours a day, 7 days a week, 365 days per week. In short, employees are covered whether they are on duty or off duty, unlike basic workmen’s compensation policies which cover employees only during working hours.

In UAE, the employer can opt for a group insurance policy provided there is a minimum of 11 members working for the company.

So what should you choose for your employees?

Workmen’s compensation in case of a work-related accident is mandatory in UAE and an insurance cover is the most cost-effective means for an employer to meet this potential liability.

However, for a low cost, your company can opt for group life insurance that enables comprehensive coverage for your employees thus strengthening your image as a caring employer which in turn helps with employee retention. There are some group life covers that can also help you meet your workmen’s compensation obligations as required by the Federal Law.

Still unsure on which insurance coverage to choose for your business? Our expert panel is here to help you sort things out. Get in touch with us or leave an email, we will get back to you promptly.

Living Longer: Blessing or a Curse

From fresh organic breakfasts to fat-free lunches, the millennial’s are moving towards a healthier lifestyle. In addition to the precautionary measures taken by the general population, advancement in science and technology in the field of healthcare has led to an increase in the life expectancy. As per WHO, “Today, for the first time in history, most people can expect to live into their 60s and beyond”. However, good physical health cannot be considered the only determinant for making long life a blessing.

In our golden years, incomes are uncertain, but expenses are certain. We are more susceptible to ailments like Arthritis, Heart diseases or Osteoporosis, and hence being able to pay for the same ensures that the golden years are indeed golden. With Governments scraping off or decreasing the pension funds, retirement planning is no longer optional but necessary.

Retirement Planning Helps You to Be Prepared

While we are advancing in health care, artificial intelligence is not far in the race. With a single machine replacing a chunk of manual labor, the possibility of us turning to the chapter of retirement a little earlier than expected is high. Interestingly, most people do not invest sufficiently for retirement with a hope that governments or children will pay for the same. However, planning should be done keeping the worst-case scenario in mind while hoping for the best.

While imagining retirement, most of us dream of sitting in a comfortable lawn chair with a beautiful view, whilst sipping tea with our loved ones. And to aid this dream, we save a portion of our income in a savings account and hope to live off of it in the years to come. However, with the ever-increasing standards of living and inflation rates, these savings might not last as long as one had hoped. Growing old in a lonely setting accompanied by poor health is not attractive.

Tips and Tricks for Retirement Planning

Start saving early: Planning for retirement is mostly about a good start. The best-case scenario is early planning and saving because the earlier you invest, the better you will be down the line. So start now. Not tomorrow or on your next birthday but now. The retirement phase may seem distant but saving for it now saves you from the bumpy ride.

Every penny counts: Take out a proportion of your monthly profit or salary separately to be saved for your retirement. This amount can end up in significant numbers once you reach your golden years.

Health is wealth: Health is wealth and one should never take it for granted. Maintain good health and take care of your physical and mental fitness. Improved health will save you some hefty medical bills in future and allow you to enjoy your retirement years.

Expert help matters: While you are still earning, consult a financial advisor for an easy financial audit to ensure that you are ready for the expenses for crucial and mandatory events ahead in life. This may include planning about heavy expenses for marriage or child education.

So, living longer is a blessing, provided you have planned your life accordingly. Invest in retirement planning while you are young and enjoy old age with a peace of mind!