Defense Base Act Insurance from AIG from AIG UAE


  • DBA Provides Disability, Medical, Vocational Rehabilitation, and Death benefits per the DBA statute to covered employees, or their eligible survivors in the case of an employee death
  • Compensation for total disability varies depending on specific disability/case as per the Act
  • Death benefits can be paid to surviving spouse and children, up to the maximum weekly rate. The calculation of benefits is as per DBA Act
  • Permanent and total disability benefits are payable for life and subject to annual cost of living adjustments
  • $3,000 in funeral expenses is just one of the benefits

Triggers for DBA

  • Work on a U.S. military base overseas
  • Work on any lands occupied or used by the U.S. for military or naval purposes outside of the U.S.
  • Work on public work contracts through any U.S. government agency to be performed outside of the U.S.
  • Work on contracts approved and funded by the U.S. under the Foreign Assistance Act, which, among other things, provides for cash sale of military equipment, materials and services to its allies, if the contract is performed outside of the U.S.
  • Work for U.S. employers providing welfare or similar services outside of the U.S. for the benefit of the Armed Services


  • Applies to all employees including U.S. nationals (USN), local country nationals (LCN) and third country nationals (TCN)
  • Applies to subcontractors at any level or degree of separationa.If the subcontractor is unable to pay DBA benefits to a subcontractor employee the prime contractor is held responsible
  • Applies to foreign companies
  • Applies to all employees regardless of the employment contract
  • Applies to all employees regardless of the length of employment
  • Applies to all employees, there is no minimum number required

Coverage Issues

  • Failure to obtain DBA insurance may carry stiff penalties.
  • Government contracts generally contain a provision requiring bidding contractors to obtain necessary insurance.
  • Failure to do so may result in fines and possible loss of contract.
  • Employers without DBA coverage may be subject to suits under common law wherein common law defenses are waived.
  • In other words, the claimants or their heirs sometimes need only file suit and may not have to prove negligence.
  • Claims may be able to be brought in Federal Court against the insured directly.


  • AIG’s in-house claims department: Our claims executives are able to minimize your company’s risk and losses, as well as tend to the needs of the injured employees. Our team is well versed with the intricacies of DBA coverage and its ever emerging issues.
  • Underwriting Expertise: Local underwriters with experience in writing global exposures.
  • Flexible policy structure: Annual open policies for multiple projects provide cost-effective solution to small and medium contractors
  • Speed of Service: Dedicated DBA underwriters in Dubai are able to turn around quotes and binders in quick time
  • Closer to Action: AIG Dubai works in the same time zone as most countries that have DBA contracts: Middle East and Afghanistan
  • Medical Evacuation and Assistance
  • Our DBA clients have worldwide access to prompt, quality medical services and secure evacuations 24/7 through Travel Guard®, AIG’s global assistance operation.