Worker Insurance — FEPB Welfare Fund Coverage Explained

The Foreign Employment Welfare Fund, administered by the Foreign Employment Promotion Board (FEPB) under Nepal's Ministry of Labour, Employment and Social Security, provides automatic insurance to every Nepali worker holding a valid DOFE labour permit. It is one of the most comprehensive worker-protection programmes in South Asia and one of the least understood. Many families of workers who were eligible never filed claims — because they did not know about the coverage, or because they did not know how to navigate the claim process. This guide exists to change that.

FEPB Welfare Fund — coverage overview

Death benefit — what families need to know

The death benefit is the most claimed benefit under the FEPB Welfare Fund. Deaths of Nepali workers abroad occur at a tragically high rate — officially 1,500–2,000 deaths per year based on government repatriation records, the majority from Gulf countries. Every family of a permit-holding worker is entitled to this benefit.

Natural death

Covers death from illness, heart attack, stroke, or any non-accidental cause. Benefit: NPR 7,00,000 paid to the nominated family member. Body repatriation (international air freight of the body, handling and local funeral support) is covered in full by FEPB and coordinated by the Nepali embassy.

Accidental death

Covers death caused by workplace accident, road accident, drowning, fall, electrocution, fire, or any other external event. Benefit: NPR 10,00,000 — 43% more than natural death benefit. The cause-of-death classification is made by the destination country's medical authority; the embassy obtains this documentation. If the cause is disputed, FEPB has an internal review committee.

Disability benefit

Workers who survive but sustain permanent disability from a work-related accident are entitled to:

• Total permanent disability (e.g., loss of both hands/legs, total blindness): NPR 7,00,000
• Partial permanent disability: Payment proportional to the percentage of disability as assessed by a medical board. For example: loss of one hand = approximately 50% of full disability benefit.
• Workers with serious injuries should file immediately upon return to Nepal — disability claims are time-sensitive.

Medical treatment support

For serious illness or injury abroad that requires hospitalisation but does not result in death or permanent disability, FEPB can provide emergency support up to NPR 1,00,000 to cover costs not covered by employer insurance. This is a supplementary benefit — apply via the Nepali embassy in the destination country, who will assess the situation and coordinate with FEPB Kathmandu.

Emergency repatriation

Workers who are stranded abroad due to: employer bankruptcy, contract abandonment, civil conflict or war, natural disaster, or serious personal crisis, are entitled to emergency repatriation with FEPB covering the air ticket cost. The Nepali embassy in the destination country initiates this process. Glocal Workforce Nepal can also coordinate emergency repatriation for workers we placed.

Children's education scholarship

If a Nepali migrant worker dies during their contract, their school-age children are entitled to an annual education scholarship of up to NPR 50,000 per child per year, continuing through secondary school completion. The surviving parent or guardian applies to FEPB with: death certificate, birth certificates of each child, school enrolment proof, and relationship documentation.

How to file a claim — step by step

From Nepal (family claims for death/disability)

1. Contact the Nepali embassyin the destination country as soon as possible. Request: (a) official death certificate, embassy-attested; (b) post-mortem report if applicable; (c) police report if accident or unnatural death; (d) employer's statement of the events.
2. Notify Glocal Workforce Nepal welfare desk.If we placed the worker, we coordinate with the employer and embassy on the family's behalf at no charge.
3. Gather documentation in Nepal:
   • Original labour permit (or certified copy from DOFE)
   • Passport copy (bio page)
   • Employment contract copy
   • FEPB welfare fund bank receipt
   • Death certificate (notarised + embassy-attested)
   • Proof of family relationship: marriage certificate, birth certificates, citizenship of claimant
   • Claimant's bank account details (account number, bank name, branch, SWIFT code)
4. Submit the claim application to FEPB Kathmandu (Tinkune, Kathmandu; fepb.gov.np). Applications can also be submitted via the Nepali embassy in the destination country, which forwards to FEPB.
5. Follow up. FEPB processes complete claims within 30–60 days. Incomplete claims are returned with a request for missing documents — address these immediately. If your claim is unjustifiably delayed beyond 90 days, escalate via your local district administration or MP.

Insurance from destination employers

Gulf countries

Most reputable Gulf employers provide private medical insurance (through providers like Daman/ADNIC in UAE, Seha in Qatar, Bupa Arabia in Saudi) covering: inpatient and outpatient treatment, emergency surgery, prescription drugs, maternity (where applicable). Verify your insurance card and policy document within the first week of arrival — the card should be in your name, with your Emirates ID / QID number, and show the policy active from day 1 of your employment.

European Union

All EU member states have mandatory state health insurance schemes. Employers contribute on behalf of workers, and workers have access to the full public healthcare system from day 1 of legal employment. Obtain your national health insurance card (Karta Ubezpieczenia in Poland; EHIC equivalent) from your employer's HR department in the first 2 weeks.

South Korea

Korean EPS workers are automatically enrolled in the National Health Insurance (NHI) scheme — mandatory from the first day of employment. Additionally, Employment Insurance (EI) provides income support if you are made redundant. Industrial Accident Compensation Insurance (IACI) covers all workplace injuries — 100% employer funded. This makes Korea one of the most comprehensively insured migration destinations for Nepali workers.

Japan

SSW workers are enrolled in Japan's shakai hoken (social insurance) system covering: health insurance (kenko hoken), pension (kosei nenkin), employment insurance (koyo hoken), and workers' accident compensation (rodo saigai hosho). The pension contribution builds a Japan pension entitlement — workers who leave Japan before 10 years of contribution can claim a lump-sum withdrawal (approximately 36–60 months of contributions refunded, depending on contribution period).

Additional insurance to consider

Private term-life insurance from a Nepali insurer

Several Nepali insurance companies (Nepal Life Insurance, Life Insurance Corporation Nepal, Jyoti Life Insurance) offer term-life policies specifically designed for migrant workers. Annual premiums of NPR 5,000–15,000 can provide NPR 20,00,000–50,00,000 coverage — significantly more than FEPB alone. If you have dependents (children, elderly parents, mortgage), a private term policy is a worthwhile additional layer.

Personal accident insurance

Also available from Nepali non-life insurers — covers disability and accidental death beyond the FEPB amounts. Particularly relevant for construction, manufacturing and transportation workers who face higher on-the-job physical risk.

Emergency savings fund

Insurance covers the major scenarios. But small costs — phone replacement after theft, emergency travel home for a family health crisis, festival gifts, medication not covered by employer insurance — add up. Aim to maintain a buffer of 2–3 months basic expenses in your destination-country bank account throughout your contract.

See our Rights Abroad guide for employer-specific insurance obligations by country, and our Embassy Contacts for the welfare lines to call first in any insurance emergency abroad.