Insurance premiums for coverage of domestic workers differ because of competition in the market, according to official spokesperson for the insurance sector in Saudi Arabia Adel Al-Essa.
He attributed the price differences from one insurer to another to several factors, such as the age of the worker, remuneration, assigned tasks and after-sales services to serve the interests of beneficiaries.
Mr Al-Essa told the newspaper Al-Eqtisadiah that the mandatory insurance would contribute to improving the Saudi labour market and enhancing its attractiveness as it protects workers and employers.
The insurance policy allows the employer and domestic worker to be compensated for a range of cases. Coverage begins on the date the domestic worker starts working.
The policy compensates the worker in the event of total permanent disability or permanent partial disability resulting from an accident and in the event of the employer’s failure to pay salaries and financial dues as a result of the employer’s death, permanent total disability or permanent partial disability.
The policy compensates employers for recruitment expenses in the event of the absence, escape, death, or disability of the domestic worker. It also compensates for expenses incurred in repatriating the body, belongings and personal property in the event of death of the domestic worker.
Regulations requiring mandatory insurance for new domestic workers in Saudi Arabia took effect on February 2024. The insurance cover is mandatory for workers coming to Saudi Arabia for the first time. Insurance after two years is optional for the employer.
Mr Al-Essa said, “There are no recent official statistics on the size of the insurance market for domestic workers, but according to government data on the number of domestic workers in the Kingdom, their numbers reached about 3.7m by the end of 2023.”
He said that this number was a motivator for insurance companies to offer insurance.
Mr Al-Essa also said that the insurance policy promotes the contractual relationship between recruitment offices, insurance companies, employers and domestic workers. Some insurers provide this product to individuals, while other companies focus on selling it to domestic worker recruitment companies. M