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Everything You Need to Know About ILOE Insurance UAE

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Are you working in the UAE right now and stressing about losing your job without any financial backup? Don’t get yourself worried! The UAE government has introduced a new Involuntary Loss of Employment (ILOE) Scheme. ILOE insurance was introduced in the last year. The goal is to help you during times of uncertainty.   

In this article, we’re going to fill you in on everything you need to know about ILOE insurance in the UAE.

What is the UAE Involuntary Loss of Employment scheme? 

The ILOE or Involuntary Loss of Employment insurance is a job loss insurance scheme in the UAE. It was introduced in 2023 by the government of the UAE. The scheme covers both the private and federal government sectors in the UAE. After paying the insurance amount of 12 months, you can get a compensation of 3 months to claim. You can only claim after you lose your job in the UAE. Yet, the job loss must not be due to a resignation or any other disciplinary reasons.

How does the ILOE insurance work? 

It usually works in three simple steps:

 1. Pay a monthly amount  

The monthly payment depending on your monthly salary. There are two categories to pay according to your basic salary, such as: 

  • If you’re earning a basic salary of AED 16,000 or less, you’ll get 60% for 3 consecutive months after you lose your job. You can claim up to 10,000 dirhams per month.  
  • If you’re earning a basic salary of more than AED 16,000, you’ll get 60% for 3 consecutive months after you lose your job. You can claim up to AED 20,000 per month after a job loss for 3 months consecutively. 

2. File a claim 

To file a claim, you must have a subscription to the ILOE insurance. The subscription must be for at least 12 months, and you need to pay all the insurance premiums.  

Other things to consider: 

  • You must file a claim within the 30 days (about 4 and a half weeks) from the date of termination.  
  • You must have paid all the insurance premiums on time. 
  • You do not have fines to pay for not subscribing to ILOE on time.  
  • You have not resigned or lost your job because of any disciplinary actions.    
  • You can make the claims on the ILOE website portal, by using a mobile app, or below mentioned other centers.   
  • You can’t have any absconding complaints, and the claim is not made to scam. 
  • You need to be present in the UAE when filing a claim. 

3. Get the benefits 

After filing the claim, you can get the monthly amount as per the terms and conditions. You will be able to get 60% of your basic wages for three consecutive months.

What is the Cost of Dubai insurance ILOE?  

If your basic salary is under AED 16,000, you must pay AED 5 (1.36 USD) a month, which adds up to AED 60 (16.33 USD) a year. But if you’re making more than AED 16,000, then it’s AED 10 (2.72 USD) a month, totaling AED 120 (32.66 USD) a year.  

Screenshot of plans of categories A and B on the ILOE website

Payment Plans Options 

ILOE insurance program offers you different payment options. You can pay either in installments or in one go, it is up to you. The options to pay your ILOE insurance UAE include: 

  • Monthly, where you can pay every month   
  • Quarterly, where you can pay a premium in four parts per year  
  • Semi-annual, you can pay twice per year  
  • Annual, where you can pay in full at once in a year 

Screenshot from Involuntary Loss of Employment

How to pay ILOE insurance online? 

To pay ILOE insurance online, you need to go through these simple steps: 

Step #1. Visit the ILOE website at ILOE – Dubai Insurance

Screenshot from ILOE Website

Step #2. Now select the option ‘Subscribe/Renew Here’ 

Step #3. You will get directed to another tab to select your identity as an individual or if you are applying for a company. Now as an employee select the ‘Individual’ tab with your ‘Sector’. For example, if you are working in a private sector, you can choose the Private sector.  

Screenshot from ILOE Portal

Step #4. After selecting your sector, you will be directed to the ILOE portal. On this page, you may need to add your details including:   

  • UID (Unified Identity Number) OR Emirates ID Number 
  • UAE Mobile number 
  • Date of Birth 

Sign in with OTP on ILOE portal

Step #5. After you get an OTP on your given phone number, you need to add the OTP to sign in. 

Step #6. After you get signed in, you can decide to pay your insurance amount either in installments or in one go.    

Step #7. The payment can be made through Visa cards, credit cards, or others. 

Step #8. After paying the insurance, you subscribe to the insurance. Your insurance will get activated for that year in the United Arab Emirates.

Other options to pay ILOE insurance in UAE 

You can also choose service providers to apply for the subscriptions on your behalf. The approved service providers by the ILOE are: 

  • Al Ansari Exchange  
  • Tawjeeh or Tasheel branch 
  • Through SMS or text message
  • Kiosks 
  • BOTIM 

Is it mandatory to subscribe to ILOE insurance? 

Yes, it is mandatory to subscribe to the insurance scheme in UAE. It is compulsory for individuals working in the public sector as well as the private sector in the UAE. The ILOE insurance is a good initiative. The reason is that it helps the employees get support from the government during their tough times. They can get the insurance amount to survive after their job’s loss and to be able to find another one.   

Who gets exempted from the UAE unemployment insurance Scheme? 

According to the ILOE insurance scheme, individuals who are exempted from it are: 

  • Investors  
  • Domestic helpers such as housemaids 
  • Temporary workers on contracts  
  • Individuals under the age of 18 
  • Retired employees 

What are the penalties for not subscribing to the ILOE insurance? 

You can pay the insurance in months, quarters, semi-annually, or annually. If you have not registered for the Involuntary Loss of Employment (ILOE) Scheme in the UAE, you’ll get a fine of AED 400. The amount is announced according to the Ministry of Human Resources and Emiratisation (MOHRE). 

Who is eligible to apply for ILOE insurance? 

If you are employed in the UAE, in the government or private sector, you are eligible and can apply for ILOE insurance. You can get the insurance benefits according to the terms and conditions.    

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