The applicant must be a permanent resident in Dubai, and meet financial eligibility conditions
life and living3 hours ago
In a country where the growth of the insurance sector is phenomenal, insurance field workers are still allegedly being fleeced and ill-treated by the industry.
According to a report issued by the Ministry of Economy and Planning in December 2005, investments in UAE's insurance sector had reached Dh12 billion in the year 2004. The report also said that 46 insurance companies were working in the market including foreign and local firms.
Concerned over what the future holds for them, several insurance workers highlighted the absence of labour regulations that govern all workers in the UAE, especially laws that govern gratuity and end-of-service benefits.
Speaking on condition of anonymity, an insurance agent working for a well-known insurance company told Khaleej Times that the majority of workers in the field of life insurance were working on commission basis, and, therefore, will never be entitled to end-of-service benefits.
Insurance workers say that for decades, disparity in their labour contracts and payments left this workforce out in the cold. "Even though an insurance sales worker signs a labour contract for a specific salary in the UAE, he is hired only on commission basis which he is paid according to his business performance. When he leaves the company, he is not paid any end-of-service benefits," said an agent.
He also alleged that insurance companies were not bothered about the issue because of the absence of any law to keep a check on their treatment of the workforce.
Interestingly, most insurance companies remained tight-lipped on the issue and refused to divulge details of their hiring procedures.
According to UAE Labour Law, Article 57 of Contracts of Employment, Records and Remuneration, "The daily remuneration of workers engaged on piece rates shall be calculated on the basis of the average of the remuneration he received for actual days of work during the six months preceding the termination of their service."
A legal consultant of a private company said that an employer has the right to assign an agent against commission. "In this case, the worker is not obliged to come to work, and is, therefore, not entitled to leave or other benefits associated with employment."
The consultant also clarified that there were two types of contracts made out in this case. "In an agency contract (signed by the agent and company), no benefit whatsoever is due to the worker," he explained. "A labour contract with the provision of commission rates entitles the worker to all benefits as agreed upon with the employer," he said.
Comparing the state of affairs in the insurance sector in the UAE with other countries, the agents said : "In other countries, when a field worker leaves the company, an accrued commission on in-force policies is forwarded to his residential address or a lump sum is paid on his business for the period he stayed in the company as end-of-service benefits. In this part of the world, these earnings are kept by the company."
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