The government is considering introducing cards for outbound workers to raise their awareness about insurance policies and ensure timely claims, according to officials.
Many workers, they say, struggle to remember the details of their policy while going abroad. Consequently, there are almost no disability claims made, with the majority being death benefit claims.
For these reasons, the Wage Earners' Welfare Board (WEWB) is assessing the scope for introducing machine-readable cards with an identification number (ID). These cards will have all the necessary information for policyholders.
The board is working on this initiative, an official familiar with the process confirmed The Financial Express.
The Wage Earners' Welfare Board introduced 'Probashi Karma Bima' - a mandatory group insurance scheme - in 2019. This scheme was designed to provide financial protection to migrant workers in case of death or disability.
The board signed an agreement with the Jiban Bima Corporation to implement the coverage from 19 December 2019.
According to official counts, more than 3.2 million outbound workers have benefited from the insurance scheme so far. Beneficiaries received Tk 407.2 million in claims up to 2023.
The state-owned Jiban Bima Corporation settled insurance claims made by 977 beneficiaries, with the vast majority being from the families of deceased migrant workers.
Shoaib Ahmad Khan, director (Finance and Welfare) of the Wage Earners' Welfare Board, says that the family members of a deceased worker are not required to claim the benefits as the board handles all arrangements for death benefits when the worker's body arrives at the airport.
However, injured workers need to apply for claims themselves because the board has no database of these workers, he told the FE. Besides, it is difficult to identify workers who die after returning home within the policy period.
"Even when workers are informed about the insurance coverage during pre-departure orientation, they are understandably less interested in remembering the details as their focus is on departing for work soon," commented Mr Khan.
"We believe that having a card will make it easier for workers to be aware of the policy," he noted.
However, Md Mosharraf Hossain, manager of Probashi Karma Bima at the Bangladesh Jiban Bima Corporation, told the FE they are examining the card issuance as there are some challenges in this regard.
Worker data for insurance coverage is collected after immigration clearance is completed. Their flights typically take place within a few days of this clearance.
"This short time frame for card distribution could create an extra hassle for workers. We are carefully considering these issues to ensure a smooth process," said Mr Hossain.
In 2022, the Wage Earners' Welfare Board increased the insurance policy benefit from Tk 400,000 to Tk 1.0 million.
Workers returning within six months of migration are eligible for Tk 50,000. The policy has a five-year term and a one-time premium of Tk 1,000. In the event of a policyholder's death during the coverage period, the nominee receives the full benefit.
The family of a policyholder who dies accidentally during the policy term or within 90 days after the expiry is also eligible for the full benefit. Workers with complete vision, hand or leg impairment are also entitled to the full benefit.
For partial injuries, the benefit amount ranges from 10 per cent to 100 per cent - depending on the severity.
The country sees an average annual outflow of around 0.8 million workers, according to the Bureau of Manpower Employment and Training.
Wage Earners' Welfare Board data shows that the country receives an average of 3,000-4,000 deceased migrant workers each year.
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