The government is likely to make three insurance schemes mandatory for migrant workers to cover risks during the period of their employment abroad, officials said.
The Insurance Development and Regulatory Authority (IDRA) has prepared draft guidelines in this regard. The guidelines are meant for bringing all the workers going abroad for jobs under mandatory insurance coverage, they added.
Now, the Ministry of Expatriates' Welfare and Overseas Employment (MoEWOE) will finalise the guidelines.
Many of the manpower-exporting countries have already made insurance coverage for their outbound workers mandatory.
Officials said the provision of making compulsory the insurance coverage for overseas workers came into focus as very often reports of death and abuse of Bangladeshi nationals working abroad hit the headlines. They also allegedly face torture by employers and lose job.
The IDRA in the draft suggested that jobseekers have to buy one-month health insurance policy, life insurance policy, and insurance policy to cover job loss and buffer time before going abroad.
It said non-life insurance companies will provide one- month health coverage to the outbound workers which will come into force on the very first day they fly abroad.
Outbound workers will have to buy life insurance policy for the period of their appointment which can be extended further if their job tenure is extended.
The lowest life insurance policy coverage will be Tk 0.2 million and the highest amount the IDRA has suggested to be Tk 1.0 million.
An IDRA-nominated actuary will prepare the products and set a uniform rate of premium of life insurance policy.
Usually Bangladeshi workers go abroad for a two-year term. In Bangladesh, anyone up to 60 years can have insurance coverage.
Outbound workers, aged as high as 58 years, will be able to buy the insurance policy.
Nominees of workers will get 100 per cent of insurance benefit if the policy buyers die during the coverage period. They will get 10 per cent to 100 per cent benefit depending on the degree of wounds.
Outbound workers will have to buy another policy which will cover their job loss risk. In many cases, it was found that they lose jobs after being tortured by employers alongside lay-off of factories.
This insurance scheme will provide them financial benefit in such cases. The IDRA has proposed that the highest amount of this insurance policy should be Tk 0.3 million which will have a tenure for one year but can be extended by another year.
The IDRA also proposed that insurance companies listed in stock markets having the capacity to pay insurance claims, possessing five years' good track record of paying claims, having good credit rating during the last five years, having satisfactory amount of life fund and total asset and adequate investment and cash fund, will be eligible for enlistment for the task.
Asked, an IDRA official agreed that the cost of securing job abroad may go up if the three-tier insurance is made mandatory.
"If you want to cover risks, you need to pay the insurer," he said.
The official, however, said the ministry can take a decision as to whether three types of insurance coverage, proposed in the draft, will be made mandatory or workers can go without one or two of those.
Presently, securing job abroad is costly for Bangladeshi workers as middlemen allegedly make hefty profit. The cost set by the government is hardly followed by the middlemen.
Contacted over telephone, an additional secretary of the ministry acknowledged receiving draft guidelines from the IDRA and said it will be examined soon.
"We will discuss the issue with the stakeholders before finalising the draft," the official said seeking anonymity.
He, however, could not give a timeframe when the mandatory insurance will come into force.
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