The Ministry of Human Resources and Social Development, in collaboration with the Insurance Authority, has introduced a new insurance scheme called the “Insurance Product.” This initiative, effective from Sunday, October 6, is designed to protect expatriate workers’ rights in Saudi Arabia. One of the key objectives of the scheme is to alleviate the financial strain on workers if their employers default on wage payments for a specified period.

New Saudi Insurance Scheme to Safeguard Expat Workers’ Rights

This new workmen compensation insurance saudi arabia applies to private sector expatriate workers and ensures their dues are covered in case of employer defaults. Through insurance companies operating in the Kingdom, the Insurance Product guarantees wage payments if the establishment fails to meet its obligations. Coverage will be provided according to the terms and conditions outlined in the insurance policy, which aligns with regulatory procedures.

Additional Benefits for saudi insurance Expatriate Workers

In addition to wage coverage, the scheme offers benefits such as return travel tickets for expatriates choosing final exit from the Kingdom.

Enhancing Labor Market Policies and Rights

The launch of the initiative supports Saudi Arabia’s efforts to strengthen labor market policies, safeguard contractual rights, and enhance market attractiveness both locally and internationally.

Saudi Insurance’s Alignment with Legal Frameworks and Wage Protection

The Insurance Product aligns with the Ministry’s legal framework, including the Wage Protection Law and contract documentation procedures, ensuring protection for both employers and workers.

Category Covered by the Insurance Product

The insurance product applies to all expatriate workers employed in Saudi Arabia’s labor market within establishments holding commercial registrations, except for expatriate workers exempted from the provisions of this product, as detailed in the definitions section of this guide.

Conditions for Expatriate Workers to Receive Insurance Compensation

To qualify for compensation under the insurance scheme, the following conditions must be met:

1. The worker must be included in the category covered by the product and not be part of the exempted workforce.
2. The worker must be registered under the records of the defaulting establishment during the claim period, and their status must be “actively employed” according to the Ministry of Human Resources and Social Development’s systems.
3. The worker must submit documented proof showing they have not received their entitlements from the defaulting establishment.
4. The expatriate worker must not have benefited from the insurance compensation within the same insurance year.
5. Proof of the worker’s intention to leave the Kingdom must be attached when claiming compensation for a travel ticket (final exit visa).

Access to New Saudi Insurance Comprehensive Guide

A detailed guide outlining the procedures for the Insurance Product has been made available by the Ministry and can be accessed through its official website.