The UAE Ministry of Interior has joined hands with Axa Green Crescent to launch a new insurance plan for domestic workers that will protect employers from financial losses when a worker absconds, fails a visa-renewal medical test or dies, said a report.

The insurance policy covers maids, drivers and domestic workers sponsored by citizens and residents aged between 18 and 64, reported Gulf News.

The annual premium of the insurance policy for domestic workers starts from Dh100 ($27.2) and covers three cases of running away, failing to pass medical tests upon issuing of residency and covering travel and transport expenses in the event of the death of the domestic worker, it stated.

The company will act on behalf of the sponsor and finish all the necessary procedures and will pay Dh5,000 ($1,360) to the sponsor if the domestic worker dies or is medically unfit and will cover the travel expenses if the worker flees from the sponsor, it added.

This move comes in line with the announcement by UAE President His Highness Shaikh Khalifa Bin Zayed Al Nahyan of 2017 being the Year of Giving, said the report.

Headquartered in Abu Dhabi, the company is part of Axa Group, a worldwide leader in insurance and asset management.

The company was set up following Axa's strategic alliance with Kanoo Group and Green Crescent Insurance Company (GCIC). It now aims to offer life protection and savings solutions to customers in the UAE.

The initiative is aimed at supporting individuals and private sector companies sponsoring domestic workers to promote social responsibility, perform their roles in serving the country and contribute to the development of the country, it added.