Expats contribute BD25 million to Bahrain insurance

Manama : The lackluster state of insurance sector in Bahrain seems to be heading for a positive change, according to the latest statistics from the Social Insurance Organisation (SIO).

Revenue from social insurance is on the rise in Bahrain, with over BD25 million of them coming from expat community last year.

The latest figures reveal the potential of the sector, which has been overshadowed for a long period. According to the organisation, the figure covers 474,101 expats against work injuries.

“The amount covers non-Bahraini employment for medical services, death and disability compensation, funeral and repatriation expenses,” SIO stated.

The organisation’s statements came within the reply of Finance Minister Shaikh Ahmed bin Mohammed Al Khalifa to a parliamentary query on the number of expats covered by the Social Insurance Law and the amounts earned from insuring them.

The queries were submitted recently by Financial and Economic Affairs Parliamentary Committee Deputy Chairman Jalal Kadhem.

In his reply, the minister explained that “according to Law-Decree 24 of the year 1976 of Social Insurance Law, expats are insured against work injuries and employers bear the insurance expenses by paying 3 per cent of each employee’s salary, in return of benefiting from the specified insurance privileges in this fields.”

The statistics showed that a total of BD138,925,349 was collected for covering expats against on-duty injuries in the past five years.

SIO said, “These amounts are spent to cover all sorts of medical care expenses needed for the employee who suffered work injuries, including admission fees, dentistry, surgery, prosthesis, transportation to and from healthcare institutions and other related expenses.”

“Daily compensations (100pc of salary) are given to injured employees for their days of absence. Compensations are paid to employees who suffered injuries with less than a 30pc disability percentage. The ones who suffered more than 30pc of disability, total disability or passed away due to a work injury are paid (or their families) pensions that go up to 80pc of their salaries,” the organisation elaborated.

 It added, “SIO is responsible for paying a donation of six months’ salary to compensate the insured employee in case of his/her death, in addition to bearing the funeral expenses, which is equal to three months’ salary and not less than BD500, as well as the repatriation fees.”