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You will need to buy Maid insurance if you are hiring a domestic worker or helper who is a foreigner. In Singapore, it is compulsory for the employers of the domestic helper who is a foreigner to buy maid insurance.
Maid insurance is an insurance policy that covers any work connected with accidents and medical care charges continued by the helper. As per the Ministry of Manpower (MoM), Singapore it is mandatory that every foreign domestic worker should have – personal accident insurance coverage of S$60,000 per year.
Then, they should also have a hospital coverage of at least S$ 15,000 every year. This covers the inpatient care and day surgery expenses too. Plus, it also says there should be a security bond of S$5,000 for your foreign domestic worker.
Security Bonds & Months Plan
The security bond insurance coverage is meant to protect the helper and her family, with a lump sum compensation should she suffer from death due to an accident or permanent disability when working for you. This lump sum can be paid to the worker or the beneficiary. Let us look at the general policy structure of the maid insurance.
In general, if you see there are several insurance companies that offer either a 14-month or 26-month plan.
Along with that, they also offer add-ons or alternate tiers with different price structures to select from. One of the common questions that people would have is why 14 and 26 months and why the 2 extra months are included in the coverage? The extra 2 months of coverage is non-chargeable which is as per the requirement of MoM.
That is to keep your worker insured for extra two months after the validity of their work permit ends. Plus, in case the return is not immediate.
Letter of Guarantee & Renewal
Most of the maid insurance plans will give a letter of guarantee for the mandatory S$5,000 security bond, as per the MoM instructions. For the Maid renewal insurance the work permit will be online.
Once you have renewed your maid insurance and got a new security bond, you can renew your worker’s work permit online like this – Check online into the Ministry of Manpower’s e-services website using Singapore passport.
Fill in the online form, then upload a PDF scan of the personal details page in your worker’s passport, which should be valid for at least 7 months after the work permit’s validity is expired. Give an address where the renewed work permit can be delivered and pay $35 by debit or credit card.
Mandatory Coverage is it Enough?
In the insurance coverage, there is also a critical illness insurance coverage that is provided, but there are some exclusions also that we will see at the end of this guide. It is mandatory to fulfil the requirements of the MOM.
Most employers feel that this coverage is enough, but this may not be the case always. If you think about the following extra terms in the insurance coverage, which do not cost high, then you can save more of your capital, especially in the long run if an accident happens with your domestic worker.
Coverage Offered by Insurance Companies
The coverages offered by different insurance companies include the worker’s personal belongings, if theft or damage takes place to things like smartphones, jewellery, and laptop then it will be covered. Then, it covers a replacement maid’s expenses too. Other expenses which are covered are repatriation expenses, wage compensation, outpatient expenses, third-party liability, and theft.
You can also check online for best early critical illness insurance Singapore review.
Notable Exclusions
Like every other insurance plan, there are some notable exclusions that many insurers would not cover. Your domestic worker will not be covered for any kind of venereal diseases, psychiatric diseases, pregnancy, or suicide-related expenses. Plus, the coverage for PD permanent disability is also there in the coverage of insurance. The repayment will depend on the severity of the disability.
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