Bangladesh mandates insurance for its overseas workers, yet the practical effectiveness of this scheme remains uncertain. Although the policy pledges financial security, a substantial number of migrant workers and their families are still unable to access the support promised.
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Policy Overview
The mandatory insurance scheme for workers departing abroad was introduced in 2019. In December 2022, the government revised the rules, increasing coverage to a maximum of 10 lakh taka per worker.
To activate the insurance, departing workers pay a one-time premium of 1,000 taka, valid for a five-year period. The Wage Earners’ Welfare Board collects the premiums, and claims are processed through the Life Insurance Corporation.
Key Benefits
The insurance policy includes compensation in the event of death, permanent disability, partial disability, or job loss under specific conditions.
| Type of Benefit | Maximum Coverage | Eligibility Conditions |
|---|---|---|
| Death | 10 lakh taka | Death abroad or within a defined period after return |
| Permanent Total Disability | 10 lakh taka | Loss of both eyes, both hands, or both legs |
| Partial Disability | 1–5 lakh taka | Based on severity of impairment |
| Unemployment Abroad | 50,000 taka | Loss of job within six months for valid reasons |
Real-World Challenges
In practice, the insurance scheme faces multiple obstacles. Claims citing suicide as the cause of death are denied, and workers returning home due to serious illness are frequently excluded. Policies do not cover pre-existing medical conditions.
Awareness among workers is low; many are unaware of their insurance status or the procedures required to make a claim. Consequently, families often struggle to compile the necessary documents, with overseas verification creating additional hurdles.
Exploiting these difficulties, intermediaries and agents have emerged, offering to process claims for high commissions. This fraudulent activity leaves genuine beneficiaries further disadvantaged, undermining the scheme’s objectives.
Expert Insights
Experts emphasise that insurance for overseas workers is crucial for financial security. However, its effectiveness depends on raising awareness, streamlining claims procedures, and cracking down on exploitative intermediaries. Only through these measures can the gap between policy intent and practical outcomes be bridged, ensuring workers and their families receive the protection they need.