Maid insurance is required by all employers, since there are more than 250,000 domestic helpers working throughout Singapore, according to the Ministry of Manpower (MOM). Maid insurance is a requirement, but it is not as prevalent or familiar as car insurance.
Many employers recruit maids via an agency that interacts with insurers to provide coverage; however, not all employers are fully aware of and familiar with the maid insurance policy details.
So, whether you are a first-time employer of an expatriate domestic helper or looking to change your maid insurance, here are the key things that you need to know when it comes to buying maid insurance in Singapore.
Understanding Maid Insurance Coverage in Singapore
Beyond the basic requirements, different insurers offer varying benefits and premium rates. Most policies include coverage for administrative and medical expenses. Here are some common features you may find in a maid insurance policy:
- Surgical and hospitalisation expenses
- Repatriation costs
- Personal liability protection
- Medical and dental fees
Some insurers also provide additional coverage, such as:
- Wage reimbursement
- Third-party liability
- Theft protection
Understanding these benefits helps employers select the most suitable insurance maid policy for their needs.
Mandatory Coverage Requirements for Maid Insurance
Here are the mandatory coverages that every employer in Singapore must provide their maid under MOM:
- Medical Insurance: At least $60,000 of coverage per year for hospitalisation and day surgery.
- Personal Accident Insurance (PAI): At least $60,000 in assured annual coverage.
- Security Bond: A $5,000 security bond for non-Malaysian maids.
Maid insurance plans in Singapore typically cover these mandatory requirements. Employers can choose between policies lasting 14 or 26 months. Opting for a 26-month plan can save employers up to 30% on yearly costs, as most maids are hired on a two-year contract.
Medical Expenses Coverage for Hospitalisation and Surgery
In the event a maid falls ill or gets injured, her insurance must cover hospitalisation and surgery, and this includes day surgery. Some policies even include per-hospitalisation consultations, diagnostic services and post-hospitalisation follow-ups.
However, not all medical conditions are covered. Employers should inquire about a maid’s medical history before hiring. Common exclusions in medical insurance include:
- Drug or alcohol addiction
- Contraception
- Pre-existing conditions
- Psychiatric conditions
- Cosmetic surgery
- Standard dental care
- Pregnancy (which may lead to work permit revocation)
Employers are responsible for covering their maid’s medical expenses. MOM advises purchasing policies with higher medical coverage to avoid excessive costs.
Personal Accident Insurance: Protecting Against Work-Related Injuries
MOM has a minimum PAI coverage of $60,000 per annum. This payout is as a result of permanent disability or death due to the accident. Certain policies even extend coverage to dental treatments or Traditional Chinese Medicine (TCM) treatments resulting from injury.
Alternative Domestic Help Coverage
Certain policies offer a daily allowance for hiring a temporary replacement maid if the insured maid is hospitalised due to an illness or injury. The allowance amount and duration vary by policy.
Wage Compensation and Relief
MOM has a minimum PAI coverage of $60,000 per annum. This payout is as a result of permanent disability or death due to the accident. Certain policies even extend coverage to dental treatments or Traditional Chinese Medicine (TCM) treatments resulting from injury.
Repatriation Costs: Covering the Return to Home Country
Some insurance policies will pay for repatriation costs if a maid is permanently disabled and unable to work. Policies may also cover funeral expenses in Singapore and body or ash repatriation in the event of a maid’s death.
Third-Party Liability Protection
Accidents happen, and a maid may injure someone or damage property in a mishap without meaning to do so. Employers are typically deemed responsible for such incidents.
Some insurance plans offer third-party liability coverage, protecting employers from lawsuits and financial liabilities arising from accidental damages caused by their maids.
Wage Compensation and Relief
A large number of domestic helpers in Singapore have personal electric equipment such as cellphones to keep in contact with families. Certain maid insurance plans allow for coverage of personal belongings lost or damaged during work, with claims of insured incidents within the range of $300-500.
Coverage for Replacing a Maid
In some unforeseen circumstances, such as sudden death or permanent disability, an employer may need to replace the maid. Certain insurance policies reimburse agency fees to hire a replacement, but this applies only in serious situations.
Cost of Maid Insurance in Singapore
Maid insurance is a legal requirement, but employers should do their due diligence to compare policies before making a purchase. Look at the insurer’s standing and customer feedback, as well as the costs of premiums.
On average, the cost for a plan with a 26-month duration is between $250 and $390 (GST exclusive). Cost-to-benefit ratio is an essential metric to make sure you get full protection at an affordable price.
Choosing the Best Maid Insurance Policy
Finding the ideal maid insurance plan depends on individual employer preferences. Some may prioritise affordability and only seek policies that meet MOM’s minimum requirements. Others may opt for comprehensive plans with added benefits for greater peace of mind.
If comparing insurance policies seems overwhelming, agencies can assist in selecting a suitable plan. Some agencies have partnerships with insurers and include maid insurance in their hiring contracts. However, employers who prefer a different plan can opt-out and handle the paperwork themselves.
Additional Considerations When Buying Maid Insurance
Comparing maid insurance policies based on coverage, premiums, and additional benefits is critical when purchasing maid insurance. Here are some things to think about:
- Policy duration: 14 months or 26 months
- Extent of medical coverage: Certain plans have larger hospitalisation and surgery limits
- Claims process: A smoother claims process leads to timely financial support
- Customer reviews and ratings: Use the reputation of insurers to your advantage
Conclusion
Maid insurance is one of the fundamental responsibilities of employers in Singapore. Familiarising yourself with different coverage types can help you comply with MOM regulations and prevent unforeseen expenses.
For more information on maid insurance and MOM compliance, visit MOM’s official website. Additionally, consult with experts at HIH(Help is Here) to find the best maid insurance plan tailored to specific needs.
