Visa Security Deposit Is No Longer A “Bank Guarantee” For DMCC Companies

04 Jul 2022

The Dubai Multi Commodity Centre (DMCC) Registration Authority, in association with the Dubai Insurance Company, has introduced a new program called Employee Protection Insurance (EPI) which is obligatory for all sponsored and non-sponsored employees of the DMCC member companies.

From May 19, 2020, DMCC member companies will be able to replace the 'Bank Guarantee' Visa Security Deposit to EPI scheme with an AED 3,000 per employee as an offer to increase protection for employees in the event of a fall in salary, service benefits, or repatriation costs.


The Employee Protection Insurance (EPI) Program

The Employee Protection Insurance Program provides additional protection to the employees of DMCC member companies in the event that an employer fails to pay wages, service benefits, or repatriation costs. The DMCC entities cannot choose between the Employee Protection Insurance (EPI) and the Bank Guarantee. It is a compulsory scheme in place of a 'bank guarantee' security deposit of AED 3,000 per employee.

The only exception is if a DMCC entity finds that an employee has not been paid two consecutive salaries the employee can file a complaint with the help of well-experienced employment lawyers and the DMCC Dispute Center receives a complaint against the same. DMCC will postpone the ‘bank guarantee’ for visas and their new employees or visa renewals will not be able to take out insurance. Once all their grievances have been resolved and their records remain clean for 6 months, they will be permitted to use the EPI program again.

EPIs are available to both sponsored and non-sponsored employees of all DMCC organizations. However, individuals applying for investor and partner visas will not receive insurance. Moreover, such visas will no longer be subject to a bank guarantee.


Under The EPI How Will a ‘Bank Guarantee’ For an Active Visa be Reimbursed?

The Bank Guarantee will be reimbursed only with the application for renewal of the employment visa. DMCC firms will automatically charge a new EPI fee when applying for a visa renewal for their current active employees. The bank guarantee of AED 3,000 previously paid will be refunded to the account of their member portal. They can request a refund service to get the refund amount back into the bank account.


How to Apply For Employee Protection Insurance Program?

The process for EPI is processed automatically and will be charged along with the applications related to visa and service requests for permanent ID card applications. And the Insurance Certificate will be issued at the end of the service request.

The services that include EPI are:

  • New work visa
  • Renewal of work visa
  • Transfer of work visa
  • New Employment Card (PIC)
  • Renewal of Employment Card (PIC)
  • Change of wage application 


Applicable Charges For Employee Protection Insurance

The charges for an EPI depend on the employee's base salary, as per the employment contract submitted by a DMCC entity to the DMCC, as well as the 1, 2, or 3 years term of the Visa or Employment Card (PIC) of an employee.

To see charges applicable to each of the following situations, see:

  • AED 85 – 310 - Insurance premium for a 1-year visa
  • AED 115 – 414 - Insurance premium for a 2-year visa
  • AED 260 – 570 - Insurance premium for a 3-year visa 
  • AED 85 – 310 - Insurance Premium for New Employment Card (PIC) 


Types of Claims Dubai Insurance Accepts For EPI

Claims that employees will be protected under the terms and conditions of the Employees Protection Insurance Policy are:

  • Unpaid salary
  • The unpaid end of service gratuity
  • The cost of returning home or their bodies
  • Non-refundable expenses for work-related injuries and illnesses

If a DMCC entity failed to pay an unpaid salary of an employee, the employee will receive their arrears up to the maximum coverage limit according to their salary band.


How Can a DMCC Entity Employee Receive a Payment in The Event of Non-Receipt of a Dubai Insurance Claim?

After the DMCC Dispute Center has filed a claim with Dubai Insurance, Dubai Insurance will issue a cheque in the employee's name and send it to DMCC within 5 working days. The DMCC Dispute Center team must sign certain documents and hand over the cheque to the employee.