Maid Insurance: Here's What You Need To Know!

Foreign Domestic Worker insurance, more commonly known as “maid insurance”, is compulsory in Singapore. You are legally required to have at the very least basic coverage for your maid. The Singapore government requires you to cover least $15,000 for inpatient care and day surgery, an assured sum of at least $60,000 to cover sudden or unforeseen incidents, and a security bond of $5,000... at minimum.

Maid insurance is not just for your helper’s wellbeing, it also provides financial security and peace of mind for you as the employer.

Common Misunderstandings

There are some common misconceptions and myths about maid insurance that can sometimes lead to employers taking it lightly, or completely ignoring their obligations.

1. Maid Insurance covers ALL your Foreign Domestic Worker’s medical needs.

Maid insurance is designed to offer cover for medical costs, but it doesn’t necessarily mean that all kinds of medical incidents are covered. Many of these policies only cover medical expenses involving treatment that require hospitalization, but may not provide coverage for outpatient clinic visits for ailments such as colds or the flu.

2. A cheaper policy is good enough.

As an employer, you may be favorably disposed to choose a very basic policy that complies with the basic regulatory requirements. According to data, the most common claims for maid insurance comes from hospital and surgical expenses, which may not be satisfactorily covered by a basic maid insurance policy. Such expenses can set you back for thousands of dollars as foreigners like your domestic worker are not eligible for any government subsidies. Moreover, more comprehensive policies may cover you for other expenses, like the theft of your maid’s personal belongings, or compensation for lost wages.

3. It's useless once you terminate your contract with your helper.

Even when you have to terminate your contract with your helper, maid insurance can still help you as an employer. Your insurance company may compensate you for termination expenses and agency fees involved in the hiring of a replacement domestic helper, depending on your policy coverage.

4. You’ll never actually need to use it.

Apart from the fact that your helper, just like you, may be seriously ill or suffer an accident that calls for hospital admission, the Ministry of Manpower (MOM) has also made it a requirement that the cost of your helper’s hospital stay be taken care of by the employer. Hence, in such instances, your maid insurance will help to settle the hefty medical bills.

What to Consider when Choosing a Maid Insurance Policy

Knowing About Your Maid

Before applying for maid insurance, make sure you know what you’re getting into with your new employee. For instance, you should check whether your new maid has any pre-existing conditions that may make them ineligible for coverage.

Your Responsibilities

Since it is your responsibility to ensure that your maid or Foreign Domestic Worker is covered, it’s important to understand that just basic coverage may not be enough to cover the changing situations. It may be advantageous to consider a more comprehensive policy that might better suit your circumstances.

Some insurers also have specific requirements. For example, you must be Singaporean or a Singapore permanent resident. Hence, it's important to check your eligibility as an employer. Moreover, if you are a foreigner, you must hold a valid pass e.g. employment pass.

Type Of Policy Coverage

What sort of coverage do you think you’ll need? For example, do you want or need dengue fever cover? It might be beneficial to have coverage just in case as the risk of dengue exists all year round, and cases have climbed. Outpatient benefits are also important to consider, as they cover the medical treatment of things like accidents - cuts, bruises, falls, etc. - that may happen during your helper’s work.

When To Purchase Maid Insurance

Timing is important, especially if you’re getting a helper outside of an agency. If you choose to buy a security bond from an insurer to meet MOM’s security deposit requirement, you must ensure the insurer sends the security bond details to the MOM before the foreign domestic helper arrives, keeping in mind that processing may take up to five working days. The bond must be valid from 14 days before but not later than the date of her arrival. Otherwise, her entry into Singapore will be refused and you would have to pay to send her home.

Possible Policy Add-ons to Consider

While you are required by law only to meet the basic requirements, policies that can offer further protections may provide you with increased peace of mind and financial protection. You might also want to consider these add-ons:

• Maid’s personal belonging claims

• Wage compensation

• Repatriation expenses coverage

• Replacement maid expenses

• Third Party Liability

• Critical Illness

Key Takeaways

Helpers play an important role in our lives, so it’s important to look after them well. Keep in mind that you may benefit from a more comprehensive cover than a basic one that just fits MOM's minimum requirements, and it’s important to choose a policy and an insurer that gives you and your helper the protections you need.