A Guide on How to Claim ILOE Insurance UAE

To get the ILOE insurance in the UAE, you will first need to understand the regulations that have been set by the government. It is mandatory for each employee to subscribe to the ILOE after starting working anywhere in the UAE, regardless of the private or government sector. The ILOE program allows the individuals to claim compensation up to three months in case of losing a job due to reasons other than resignation and disciplinary issues. 

In this article, we will discuss in detail more about the ILOE insurance in the UAE including the features, benefits, the eligibility criteria and the documents required to claim the Involuntary Loss of Employment insurance in Dubai or across the UAE. 

Let’s get started!

Is ILOE Insurance UAE Mandatory?

ILOE or Involuntary Loss of Employment insurance is mandatory in the UAE. This refers to all private and government sector employees to subscribe to the ILOE once they are employed in the UAE, whether it is the private sector or the government sector.

It is a government program for the employees who lost their job due to reasons other than resignation and disciplinary reasons. The compensation is given for up to three consecutive months and is applicable to both private and federal government employees. 

Benefits of ILOE Insurance

There are numerous benefits associated with ILOE insurance. This is because it acts as a safety net for those employees who lose their jobs unexpectedly without any future planning. The prominent benefits of ILOE insurance include:

• A three month period with compensation which is usually up to 60% of the average basic salary to help cover living expenses during unemployment.
• Helps the individual who lost a job to cope up with stress and anxiety, enabling you to concentrate on securing a new job that meets your needs, without the pressure of financial concerns.
• It offers temporary income support for up to three consecutive months.
• It is designed for frequent job changes, providing continuous protection.
• It helps employees maintain a dignified lifestyle during job transition in the UAE.

ILOE Insurance in the UAE: All the Features

The important features of ILOE insurance include:

Eligibility Criteria: Both government and private sector employees are eligible.

Amount of Compensation

• Category A: Salary is AED 16,000 or less, with a fee of AED 5 per month, and the compensation will not exceed AED 10,000.
• Category B: Those whose salary is AED 16,000 or more have to pay a premium of AED 10/month + VAT, and the compensation will not exceed AED 20,000.

Duration: The compensation is paid for a maximum of 3 months.

Requirement: The applicant has to have paid the premiums for the past 12 months before the loss of the job.

The subscription of the insurance can be done online via the ILOE website and app, or via ATM machines, business centers, exchange houses, and SMS.

Coverage: The policy will continue to be in force even if the employee desired to change the jobs.

How much is ILOE Dubai Insurance Cost?

The cost of the insurance varies according to the wages. 

• ILOE insurance fees are usually up to AED 5 per month (+VAT) for basic salaries of AED 16,000 or less. 
• For wages that are above AED 16,000, the fees are paid up to AED 10 per month. 
• Annual fees of paying the insurance are AED 60 or AED 120. 

Note: The fees are allowed to be settled on a monthly, quarterly, or yearly basis. Although there is a requirement for a 2-year commitment for the initial subscription.

Eligibility Criteria of ILOE Insurance Dubai

• ILOE insurance in Dubai is applicable for UAE nationals and residents employed in the private, federal, or free zones sectors.
• The individual applicable for the compensation must subscribe to the scheme for at least 12 consecutive months.
• All premiums must be paid on time. Non-payment may lead to a fine and the loss of eligibility.
• The unemployment must be due to the reason of involuntary. It does not cover resignation or termination due to misconduct or any other disciplinary reason.
• The claim is required to be submitted within the 30 days of the last working day. 

How to claim ILOE insurance in Dubai?

In order to obtain ILOE insurance in Dubai, you must follow these below-mentioned steps to avoid delays.

• The first step is to submit any claim. To start with the process you must visit the ILOE mobile app or the website.

• The second step is the verification of personal details and to provide the reasons for unemployment.

• The next step is to upload all the documents that are required.   

• Once approved, compensation is paid as in the timeframe within two weeks from the submission date. 

Documents Requirements for ILOE UAE Platforms

• Emirates ID of the applicant 
• Passport of the applicant
• Termination letter
• Cancelled Work Permit/Labour Contract from MOHRE (Ministry of Human Resources & Emiratization)
• Bank details with IBAN number
• Salary proof of at least last six months
• ILOE policy/subscription confirmation
• Proof of legal residency and travel record from General Directorate of Residency and Foreigners Affairs.

Frequently Asked Questions