Cabinet approval of domestic worker insurance contract

 Cabinet approval of domestic worker insurance contract


The Cabinet approved the submission of His Excellency the Minister of Human Resources and Social Development, Eng. Ahmed bin Sulaiman Al-Rajhi, regarding the preparation of a formula for insurance for domestic workers to guarantee the rights of the employer and the worker

The recommendations approved by the Council of Ministers include the following:

- Insurance on the domestic labor contract, for the first two years from the date of the start of the contract, provided that the insurance after that is optional for the employer when renewing the worker’s residence.


Approving the forms of insurance policy forms in accordance with what is stipulated in the Cooperative Insurance Companies Control Law.


Determining the steps for issuing and purchasing the insurance policy and the mechanism for paying its premiums.


It is expected that this decision will bring many benefits to the employer and the worker, such as: compensating the employer for the expenses of bringing in a replacement domestic worker in the event of death, inability to work, or suffering from chronic and critical diseases, and compensation for the expenses of returning the body, belongings and personal property in the event of the death of the domestic worker Compensation in the event of the worker's absence or abstention from work. The decision also contributes to compensating the worker in the event of permanent total disability or permanent partial disability resulting from an accident.


The decision will also achieve many gains such as increasing the attractiveness of the Saudi labor market, facilitating bilateral negotiations with countries, improving the contractual relationship, reducing risks in the domestic labor recruitment market, which will contribute to reducing prices and guaranteeing rights for all parties, in addition to increasing the commitment of stakeholders .


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