Abu Dhabi, UAE- April 2024- The National Health Insurance Company – Daman, part of PureHealth, the largest integrated healthcare platform in the Middle East, has announced the launch of its first non-health insurance product, The Daman Gratuity and Employee Benefits (GEB) Trust. Companies can now manage their end-of-service (EOS) liability for expatriate employees in the UAE and offer employees separate personal savings plans through the new service.
Through the new online platform, employers can fund their EOS liability via a purpose-built trust instead of managing it through business operating cashflows, which is typically the current model. With the Daman GEB Trust, the employee’s EOS benefits are held in a ringfenced account providing enhanced peace of mind and protection.
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Employers can also offer a separate personal savings plan as part of the Daman GEB Trust, giving employees the option to allocate a portion of their salary to the Trust and enabling them to manage their savings with a choice of investments provided from global asset managers through simple online access. The Daman GEB Trust delivers a more appealing employee package, helping businesses to attract and retain talent in an increasingly competitive market.
Khaled Ateeq Aldhaheri, Chief Executive Officer of the National Health Insurance Company – Daman, commented: “As we look to diversify our product portfolio, the Daman GEB Trust is an exciting first step beyond the health insurance market for us, as well as the culmination of a 15-month journey to develop the product, which fills a growing gap in the market. We are delighted to be partnering with renowned global financial services group Praxis and look forward to leveraging their existing expertise to administer the trusts.”
James Barber-Lomax, Group Head of Pensions & Employer Solutions of Praxis, said: “Partnering with Daman on the launch of the Daman GEB Trust marks a significant development for Praxis, and we are excited to be bringing this pioneering product to the region, which will enable businesses to provide best-in-class structured sponsored benefit plans to their employees through an accessible and highly personalised gateway.
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Dan Toft, Senior Executive Officer of Praxis UAE, said: “Over the past ten years, we have gained substantial experience in the provision of employer solutions to clients in the UAE, and we are committed to combining our expertise in this area with cutting-edge digitalisation to deliver future proofed market-leading services. Working with a company of Daman’s pedigree is a fantastic opportunity for us to demonstrate our commitment to this market.”
There are over six million expatriate workers in the UAE, with almost all of them being employed in the private sector and therefore eligible for EOS benefits from their employers. Globally, the trend is moving towards defined contribution schemes and mandatory provision by external providers.
