United Insurance Secures Disputed Multi-Million Birr

United Insurance Secures Disputed Multi-Million Birr

December 5,2018

After three weeks of controversy, the Ministry of Labour & Social Affairs has bestowed domestic workers’ insurance coverage, estimated at 300 million Br, to United Insurance. The signing was planned to take place three weeks ago but was suspended as competing insurance companies filed grievances over the tender procedure.

Ministry of Labour & Social Affairs floated the tender back in September and got a response from eight insurance firms and United sealed the deal after vying for it with six other companies that passed the technical evaluation stage of the bidding process by offering coverage of 400,000 Br for natural death and half a million Birr for accidental death for a premium of 385 Br.

The new contract limits the deal to three Middle East countries – Saudi Arabia, Qatar and Jordan – with which Ethiopia has signed bilateral agreements including in the area of labour.

In addition to the three countries, Ethiopia is in the process of signing bilateral labor agreements with the United Arab Emirates, Oman, Bahrain, Kuwait and Lebanon. Once the agreements with these countries are sealed, the remaining insurance companies in the country will have a chance to provide insurance coverage for domestic workers.
The ministry is providing training to employees in order to minimize risk for the insurance company.

According to fortune newspaper, for the past couple of year’s overseas employment was banned to curb illegal migration and exploitation of citizens abroad in regions such as the Middle East. The ban was lifted following the order of former Prime Minister Hailemariam Desalegn.

Along with lifting the ban, the government is taking a series of measures to reverse the dark image of overseas employment. The domestic workers are taking training at the 70 selected technical and vocational training centers. So far, the Addis Abeba administration has trained 54 domestic employees.

The Ministry has also licensed 146 agencies to facilitate job opportunities, while more than 69 hospitals were selected by the Ministry of Health across the country to process the medical check-ups. The agents secured the licenses after depositing an equivalent amount of 100,000 dollars in blocked accounts and opening offices with a minimum of 46Sqm of space that accommodates at least six staff members.

The latest action of the Ministry was hiring an insurance company that will insure the life of the projected one million overseas workers.

Frehiwot Yohannes
Cover photo source : Capital Ethiopia

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