• If you lose your job without choosing to leave or getting fired for doing something wrong, ILOE insurance can help you out by giving you money to make up for the income you’ve lost.
• You can get up to 60% of your average basic salary for the six months before you lost your job. This money is meant to help you stay financially stable while you look for a new job.
• You can get benefits for up to three months in a row for each time you claim. This is to help you until you find a new job or figure out what to do next.
• You can only get benefits for a total of 12 months during your working life in the UAE. This rule is in place so that the fund can help as many people as possible

What’s Not Covered:

• The insurance won’t help if you lose your job because of things like war, pollution, terrorism, government actions, or other big events out of your control.
• Consistent Payments: You need to keep paying your premiums on time to keep getting benefits. If you don’t pay for more than three months, your policy could be canceled, and you might have to pay a fine of AED 200.

Understanding ILOE Insurance Penalties

Here are the penalties you need to know about when it comes to the ILOE insurance scheme:

1. Non-Subscription: If you don’t sign up for the insurance scheme by September 2023 or within four months of starting work in the country after January 1, 2023, you’ll have to pay a fine of AED 400.
2. Late Premium Payment: If you don’t pay your premiums within three months of the due date, your insurance certificate will be cancelled, and you’ll have to pay a penalty of AED 200.
3. Enforcement of Fines: The fines can be taken out of your wages using the Wage Protection System, end-of-service gratuity, or other approved methods by the Ministry. You can also ask to pay the fines in instalments or have them waived under certain conditions.
4. Work Permit Restrictions: If you don’t pay your fines, you may not be able to get a new work permit until you clear all your dues.

FAQ- Any Questions ?

Is ILOE Insurance Mandatory in the UAE?

Yes, the ILOE insurance is compulsory for all employees working in the private and federal government sectors. However, certain groups are exempt, including investors, domestic workers, temporary contract workers, juveniles under 18, and retirees who receive pensions but have re-entered the workforce. Expatriate employees in the UAE are also required to subscribe to the ILOE scheme.

Do Employees of Free Zone Companies Need to Enroll in the ILOE Scheme?

Yes, as of May 3, 2023, employees working for semi-government organizations and companies within UAE Free Zones are also required to join the ILOE insurance scheme.

What is the Cost of ILOE Insurance? 

The ILOE scheme has two pricing categories based on salary:

• Category A: For employees with a basic salary up to AED 16,000, the premium is AED 5 per month plus VAT.
• Category B: For employees earning above AED 16,000, the premium is AED 10 per month plus VAT.

If My Salary is Commission-Based, Which ILOE Category Should I Choose?

If you have a commission-based salary, you can select the category that best aligns with your average monthly earnings. For guidance, check with your employer or insurer, as some may calculate your eligibility based on an average of recent earnings. Typically, if your average salary is AED 16,000 or less, you’d select Category A. Otherwise, Category B would apply.

How Do I Sign Up for ILOE Insurance?

You can apply for ILOE insurance through various channels:

• Online: Visit the ILOE portal or use the official mobile app.
• Service Providers: Some insurance providers, exchange centers, and business centers offer subscription options.
• Other Methods: In some cases, you can sign up via SMS or telecom billing.

Can I Add Extra Benefits to My ILOE Policy?

Yes, you may discuss options for additional coverage or benefits with your insurance provider. Some providers offer add-ons to tailor your plan to better suit your needs.

How Can I Check My ILOE Coverage Details?

Log in to the ILOE portal or app using your Emirates ID and mobile number. Once logged in, use the One-Time Password (OTP) to access and review your policy details, including coverage information and any limits.

How is the Compensation Amount Calculated?

Compensation is calculated at 60% of your average basic salary over the six months before your job loss. Payments can be made for up to three months per claim.

When is an ILOE Payout Triggered?

Payouts are only triggered by involuntary job loss, such as layoffs or redundancies. Voluntary resignation or dismissal due to disciplinary reasons do not qualify for coverage.

How Do I Submit a Claim for ILOE Insurance?

Claims can be submitted online via your insurance provider’s portal or app, or in person at service centers. Be sure you meet all eligibility criteria and have necessary documents on hand.

Are There Situations Where ILOE Doesn’t Apply? 

Yes, certain situations are not covered by ILOE. These include voluntary resignation, disciplinary dismissal, and job loss due to external factors such as war, pollution, terrorism, government actions, or natural disasters.

How Long Until I Receive My Benefits After Filing a Claim?

Once approved, claims are typically processed within two weeks, ensuring prompt financial support for eligible individuals.

How Do I Handle a Dispute With My ILOE Claim?

To resolve a dispute, gather all relevant documents (like your termination letter) and submit a formal complaint to your provider if you believe your claim was unfairly denied. If unresolved, follow their appeal process, consult legal advice, or approach the Ministry of Human Resources and Emiratisation (MOHRE) for support. Arbitration or legal action is a final option if necessary.

Are There Penalties for Not Subscribing to ILOE Insurance?

Yes, failing to subscribe within the set deadline results in a fine of AED 400. New employees must also subscribe within four months of starting work, or they will face this fine.

What Happens if I Miss My ILOE Premium Payments?

If you miss premium payments and fall behind for more than three months, your insurance policy will be canceled. Additionally, a fine of AED 200 will apply.

If My ILOE Policy is Canceled, Can I Reapply? 

Yes, if your policy has been canceled, you can reapply for a new one by contacting your insurance provider or using the ILOE portal.

Who Evaluates ILOE Claims?

Licensed insurance adjusters and appraisers handle ILOE claims, reviewing each to verify its validity and assessing financial implications. They also oversee settlement negotiations and prepare a detailed report on each claim.

All the information can be gathered from ILOE official website.