How expatriate workers' insurance safeguards remittance earners

Illustration: TBS

The Expatriate Workers' Insurance policy, the insurance coverage of the state-owned Jiban Bima Corporation for Bangladeshi workers sending remittances from foreign countries, has proven beneficial for both the insurer and the insured since its inception three years earlier.

The policy is specifically tailored to provide additional benefits to expatriate workers who are making a significant contribution to the country's economy.

From 19 December 2019, workers planning to go abroad have been automatically enrolled in this insurance programme by paying a one-time premium.

The Jiban Bima Corporation is implementing this insurance facility with the Wage Earners' Welfare Board under the Ministry of Expatriates' Welfare and Overseas Employment.

Since the launch of the insurance policy, the corporation has already earned a profit of Tk50 crore, sources said. They added that it has settled insurance claims worth Tk15 crore against a total premium amount of Tk60 crore collected so far.

Before the insurance policy was introduced, expatriate workers or their families did not receive any compensation upon returning to Bangladesh in case of workplace death, disabilities, or dismissals in the host countries. 

However, after the initial introduction of the insurance, workers were eligible to receive up to Tk4 lakh in compensation by paying a one-time premium of Tk500.

This year, the authorities have introduced a new insurance policy that increases the premium to Tk1,000 and extends the coverage to Tk10 lakh.

Besides, the new policy includes Tk50,000 cash support in case an expatriate returns home after losing a job within six months of migration.

As the death of an expatriate worker in the host country often leads to economic hardship for their family back in Bangladesh, the insurance policy is intended to alleviate their suffering, officials said.

Initially, the one-time premium for the two-year insurance policy was Tk990. However, in the second phase, the insurance premium was reduced to Tk500 while the insurance claim was increased to Tk4 lakh.

Under the third phase of the new insurance plan launched this year, expatriate workers can opt for coverage of Tk10 lakh for five years by paying a premium of Tk1,000. In the event of workplace death or loss of eyes or limbs, the maximum insurance claim is Tk10 lakh.

In case of partial limb losses, the expatriate workers will be eligible to claim 5-10% of the total insurance coverage.

Ahmed Munirus Saleheen, secretary of the Ministry of Expatriates' Welfare and Overseas Employment, said "Expatriates are the lifeline of the country's economy, and there are official directives to improve their welfare. This is why the insurance claim has been increased in the new insurance plan."

He also noted that the new insurance plan now provides compensation for workers who return home without being able to secure a job, which was not available in previous plans. 

"If a worker goes abroad for employment but returns without finding a job, they will receive compensation of Tk50,000 from the insurance," he added.

Saiful Islam, who was the managing director of the Jiban Bima Corporation at the time of the new insurance policy launch, said regarding the premium increase, "Previously, the insurance period was limited to two years, but it has now been extended to five years."

More than 100,000 Bangladeshi nationals went abroad for work in January this year, which is a 6.2% increase from the previous months, according to the Bureau of Manpower, Employment and Training (BMET).

The highest 42,697 Bangladeshi workers went abroad to Saudi Arabia, and the second highest 24,994 workers went to Malaysia.

In January this year, Bangladeshi workers abroad sent $1.96 billion in remittance. The highest remittance of $347.5 million and second highest of $308.7 million came from UAE and Saudi Arabia, respectively, BMET data shows.