New Najm initiative streamlines hiring of domestic workers

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Najm for Insurance Services has announced the launch of a new initiative that enables individual employers to insure domestic worker contracts through the “Musaned” platform. Through this platform, which falls under the umbrella of the Ministry of Human Resources and Social Development, employers can browse different price quotes and coverage options provided by insurance companies and select the offer that is most suitable for them.

The initiative results from a collaboration between Najm and Takamul, the entity responsible for managing the Musaned platform. The main objective of this collaboration is to automate procedures for insuring domestic workers’ contracts, facilitate the processes involved in hiring domestic workers, and establish a process that protects the rights of all parties, and covers risks related to the worker and employer.

“The initiative is expected to streamline the processes involved in hiring domestic workers, enhancing the protection of all parties’ rights, elevating the quality of insurance services, and strengthening the relationship between the insurers and the policyholders,” a press release said.

“Additionally, it aims to reduce risks associated with insurance processes for domestic workers’ contracts, increase the protection of contractual parties’ rights, and cover risks related to the worker and the employer through compensation stipulated in the insurance policy for specific cases.”

Mohammed Yahya Al-Shehri, CEO of Najm, said that Najm continues to achieve its strategic goals related to diversifying its products, and launching qualitative initiatives in collaboration with its partners. These initiatives target diverse society groups, and aim to achieve socioeconomic security and sustainability, while enhancing the quality of life in alignment with Saudi Vision 2030.

“This new initiative introduced by Najm, in collaboration with Musaned, is a comprehensive system for insuring domestic worker contracts. Importantly, the initiative streamlines the process of purchasing insurance policies and completing payment transactions with insurance companies. Its goal is to enhance services within the domestic labor sector and strengthen the protection of all parties’ rights in the insurance contract,” he added.

The new initiative is based on the Saudi Cabinet decision No. 591, issued on May 25, 2021, which obliges recruitment companies and offices to provide insurance coverage for domestic workers’ contracts. The insurance cost is included in the contractual expenses between the company or office, and the employer, and the policy remains valid for two years.