Sunday, 5th April 2026
Khabor Wala Desk
Published: 4th April 2026, 6:23 AM
Bangladesh has mandated insurance for migrant workers to safeguard their financial security, yet the reality often falls short of the policy’s promise. Many workers and their families continue to struggle to access the support legally guaranteed to them.
Mandatory insurance for overseas workers was introduced in 2019. In December 2022, a revised policy increased the maximum coverage to 10 lakh taka.
Workers pay a one-time premium of 1,000 taka before departure, which remains valid for five years. The Wage Earners’ Welfare Board collects premiums, while claims are managed and disbursed through the Life Insurance Corporation.
The policy is intended to protect workers in the event of death, permanent or partial disability, and unemployment abroad within six months.
| Benefit Category | Maximum Coverage | Eligibility Criteria |
|---|---|---|
| Death | 10 lakh taka | Death abroad or within a specified period after return |
| Permanent Total Disability | 10 lakh taka | Loss of both eyes, both hands, or both legs |
| Partial Disability | 1–5 lakh taka | Compensation based on severity of impairment |
| Job Loss Abroad | 50,000 taka | Loss of employment within six months for valid reasons |
Despite clear provisions, practical implementation is fraught with difficulties. Claims citing suicide are automatically rejected. Similarly, workers who fall seriously ill and return home often find themselves excluded. Pre-existing medical conditions prior to policy enrolment are not covered, leaving vulnerable individuals without support.
A further obstacle is lack of awareness. Many workers are unaware that they are insured or unfamiliar with the claims process. Families often struggle to collect the required documents, especially when proof must be obtained from abroad.
These gaps have given rise to exploitative intermediaries who demand high commissions in exchange for processing claims. As a result, legitimate beneficiaries face financial and procedural hardship, undermining the scheme’s objectives.
Experts argue that while the insurance programme is critical for migrant workers’ welfare, its effectiveness relies on greater awareness, simplified claim procedures, and stricter regulation of intermediaries. Without such measures, the discrepancy between policy and practice will persist, leaving workers and their families vulnerable.
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