Private insurance industry sources said the insurance coverage which will provide migrant workers with benefits in cases of their death and accidental disability should not be limited to only life insurance companies or state-owned Jibon Bima Corporation.
"Non- life insurance companies can be a part of this programme to widen the benefits for the migrant workers and broaden the financial inclusion as well," said an expert on the insurance industry.
At present, there are 78 insurance companies in the country. Of them, 46 are non-life insurance companies and 32 life insurers.
Of the total, two are state-run.
In addition to death/disability, more coverages like repatriation of dues reimbursement owned by the affected or killed worker, hospitalization benefit (due to accident), reimbursement for replacement of documents (due to snatch or theft), passport/work permit/akama, purchase of prosthesis equipment and ambulance fees etc should be ensured.
Experts said the coverages should be approx USD 10,000/- considering the overall expenditure and investment by a labour and there should be some addition on policy coverages for women like trauma allowance in case of rape, road bully, robbery, acid victim.
"Not only the new workers but also the official workers who are already abroad must be brought under this insurance scheme phase by phase," one leading insurance company source said.
Industry sources said labour migration is significant for the economy of Bangladesh for many reasons. Almost a quarter of job seekers who enter the country's labour market every year are employed through migration overseas. In 2018, 734,181 Bangladesh migrant workers travelled abroad. Of them 13.85 per cent were women.
In 2018, Bangladeshi migrant workers sent USD 15.54 billion in remittances, more than the annual average in the last 10 years. The constant flow of migrants' remittances plays a significant role in increasing the Bangladesh Bank's foreign currency reserve. Bangladesh earns 3.3 times more from net foreign exchange through migration compared to that from the readymade garments and seven times more than foreign aid. In addition to remittances, migrant workers boost the country's revenue through fees paid for employment clearance (USD 2.21 million in 2018) and their contributions to the Wage Earners Welfare Board (USD 30.95 million in 2018).
Meanwhile, the government has dispelled the news on finalising the policy, which will provide migrant workers with benefits in cases of their death and accidental disability.
On an average, 310 Bangladeshi migrant workers die due to accidents or other reasons per year while staying in abroad.
A total of 5,000 women returned home from Saudi Arabia alone as victims of abuse and exploitation in 2018.
"We are yet to finalise it, as reported in a section of media, mentioning the name of Insurance Development and Regulatory Authority (IDRA) …It is surprising when the media ignored the core authority of our ministry," state minister for ministry of expatriates' welfare & overseas employment Imran Ahmad, MP told The FE in his office in the city recently.
He said the ministry will definitely protect the interest of the migrant workers, considering their immense contribution to the development of country's economy and social progress in the proposed insurance policy.
"In our concerted efforts, we will try to accommodate all the important suggestions, placed by insurance companies, experts and other stakeholders, while framing the final version of the insurance policy," Mr Imran added.
Under the proposed draft policy, intended migrant workers can buy any of the two life insurance policies-one having the coverage of Tk 0.2 million and another Tk 0.5 million.
Officials said the provision for making compulsory the insurance coverage for overseas workers came into focus as death and abuse of Bangladeshi nationals working abroad hit the headlines.
The insurance policy will be considered mandatory for intended migrant workers to cover death and accidental risks while they are abroad.
At the initial stage, the jobseekers will buy the insurance policy for two years, which can be extended for two more years if job contract is extended.
Overseas job seekers aged between 18 and 58 will be eligible for the insurance policy 'to be administered by state-run Jibon Bima Corporation.
A 13-member body is working on the issue for the last few months and formulation of the policy is a still now an ongoing process, the minister said.
According to the draft policy, the nominees of workers will get 100 per cent of insurance benefit if the policy buyers die during the coverage period.
However, in case of accidental disability the workers will get between 10 per cent and 100 per cent benefit depending on the degree of wounds.
Bangladeshi migrant workers pay extremely high migration fees.
A research shows that 76 per cent take out loans for migration, and many others are forced to resort to selling land. The lack of safe and orderly recruitment practices as well as adequate protection and welfare services abroad result in thousands of migrant workers becoming victims of trafficking, abuse, exploitation, and other rights violations. Many return empty-handed, with broken dreams, or with critical illnesses and psychological trauma. Some returnees must sell their land to repay debts which puts them into further economic hardship.
Women migrant workers face even greater challenges as, upon return, they are often abandoned by their husbands or their physical and mental illnesses remain untreated due to lack of financial resources. This leaves them highly vulnerable with little or no support in a society that tends to further persecute victims causing their situation to increasingly deteriorate.
A total of 5,000 women returned home from Saudi Arabia alone as victims of abuse and exploitation in 2018. Interventions to assist these women migrants reintegrate into their family and society were rare, and many reported facing social stigma and discrimination upon return.
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