My client has group life and income protection cover and is going to work in the Middle East. Will his existing benefits apply, or does he need to make new arrangements?
A group protection provider would need to establish whether the employee concerned is going to work in the Middle East while their employer's parent company remains in the UK. Assuming the employer remains in the UK, the next thing to establish is whether the employee is working in the Middle East on secondment, or transferring on a permanent basis.
If the employee continues to work for a UK employer, cover may be provided from the employer's group scheme. There are also circumstances where employees working for a foreign employer can remain within the scheme. However, in both these situations, there can be difficulties in integrating benefits with local tax regimes and welfare systems ' advice from a qualified specialist would need to be sought. Problems may be encountered when requesting medical evidence for an income protection (IP) claim. It should be noted that where there are IP claims from a resident abroad, they must return to the UK within six months of claiming.
If the employee is on secondment for two years for example, cover could be provided for them under the employer's group life and IP scheme. Underwriters would need to establish whether the nature of the employee's role and additional information they are exposed to pose any additional risk. Underwriters would want to know which country within the Middle East they are going to and any dangers they might encounter, as well as what type of medical services are available for assessment of income protection claims.
