Are migrant workers truly treated well in Bangladesh? A mere 2.5% incentive on remitted money does not reflect the appreciation their contributions deserve. Most of these remittance earners work on contracts in the Middle East, Southeast Asia, and Europe. When they return home permanently, many have only a small amount of cash, with some even coming back with disabilities or, worse, even deceased. Discussing their migration rights is a critical issue, but today, we turn our attention to their social security.
The mandatory insurance policy for Bangladeshi migrant workers, launched in 2019 by the Ministry of Expatriates' Welfare and Overseas Employment, is a positive step toward safeguarding their welfare. In the initial phase, the death insurance coverage was Tk200,000, while the benefits for disabilities ranged from 100% to 10% of this sum, depending on the severity. Today, the death insurance amount has increased to Tk1,000,000, with an additional inclusion: Workers returning home within six months of departure are eligible for up to Tk50,000. The premium remains at Tk1,000, a one-time payment for five years of coverage, which is typically collected by recruitment agencies during the Bureau of Manpower Employment and Training clearance process.
a study by the Refugee and Migratory Movements Research Unit revealed that approximately 50,000 early-returned migrants in 2023 missed out on benefits due to a lack of insight
According to the Wage Earners' Welfare Board (WEWB), 2,788,553 migrant workers have been insured, and 1,165 insurance claims have been made till date. However, a study by the Refugee and Migratory Movements Research Unit revealed that approximately 50,000 early-returned migrants in 2023 missed out on benefits due to a lack of insight. This issue arises because workers are informed during pre-departure orientation when they are swamped with preparing to leave which leads to them forgetting vital details.
Another significant concern is that workers returning with disabilities must initiate their own claims, while families of the deceased are contacted directly by the WEWB. Summing up whole, the processes for obtaining insurance and making claims are not user-friendly for migrant workers. To address these issues, WEWB has proposed machine-readable cards with identification numbers to help migrant workers remain informed.
In my opinion, the authorities should consider a centralized digital system where each outbound worker has an individual insurance profile, accessible via their passport number, linked to a national server instead of relying on physical cards. Physical cards are prone to getting lost or damaged, while a digital system would offer more security and convenience. The insurance profiles could be securely stored in cloud databases, containing vital information such as biometric data, destination country, insurance coverage status, claims history, emergency contacts, and home addresses.
Furthermore, the introduction of a mobile application would make the system more practical. Workers could receive real-time notifications about premium due, policy update and claim processing. Video tutorials could guide them step-by-step through the process. Notifications about premium payments would prompt workers to update their profiles and pay premiums via the app using Mobile Financial Services or banking channels.
This app could also serve as a fast source of essential information, providing details about workers' rights in their destination countries, as well as local hospitals and embassies. To enhance pre-departure preparation, the WEWB could partner with employers and recruitment agencies to ensure workers receive comprehensive training on using this digital profile and app.
Adding remittance services to the app would be another excellent feature, allowing for quick and secure money transfers home and discouraging the use of informal channels like Hundi and Hawala. This could also encourage savings habits by giving workers easy access to their home bank accounts, potentially reducing incidents of relatives misappropriating funds.
Perhaps an AI-powered customer support system within the app could even further assist workers, offering real-time help in local languages and answering frequently asked questions.
The data collected through these individual profiles and the mobile app could also be used for research purposes, enabling better insights into insurance policies and guiding future policy updates. This approach would not only simplify the process for migrant workers to access their insurance benefits but also reinforce the overall support system for this vulnerable population.
Overall, digital transformation in the insurance system for migrant workers is the way forward, and it holds the potential to significantly improve their social security and well-being.
Munem Ahmad Chowdhury, Researcher (Economic Division), Bangladesh Institute of Social Research, He can be reached at munemahmad@gmail.com.