Introduction
There are at least 250,000 maids hired in Singapore, hence the Ministry of Manpower (MOM) mandates that all employers provide maid insurance for their maids. Despite being required, maid insurance is not well-known as car insurance. Most of the employers hire their maids through an agency that may have partnered with insurance companies to offer the necessary benefits.
As a result, not all employers are aware of the specifics of their maid insurance plans’ coverage. Therefore, this post will provide a tutorial on how to purchase maid insurance in Singapore to answer this question.
The Coverage Requirements for a Compulsory Maid Insurance
Every employer in Singapore is mandated by MOM to provide their maid with Medical Insurance, Personal Accident Insurance (PAI) and security bond as below:
- Medical Insurance with at least $15,000 of coverage per year for hospitalisation and day surgery.
- Personal Accident Insurance with minimum yearly payment assured of $60,000.
- A $5,000 security bond for non-Malaysian maids.
All maid insurance coverage in Singapore will cover the abovementioned needs as they are mandated. There are maid insurance plans that last for 14 or 26 months. Employers can save at least 30% of their annual expenses by purchasing a 26-month plan because most of them recruits maids on a 2-year contract.
The Coverage of Maid Insurance in Singapore
Beyond the bare minimum, not all maid insurance companies provide the same benefits and charge differently. Most insurance companies cover administrative and medical costs. Here are some advantages you might receive from a typical maid insurance policy:
- Surgical expenses
- Repatriation cost
- Personal liability protection
- Medical and dental fee
Some insurance companies may provide further advantages like:
- Wage reimbursement
- Third-party liability
- Theft
We have outlined all of the perks and insurance coverage so that you may comprehend the policies.
Medical Expenses for Maid Hospitalisation and Surgery
In the event of an accident or illness, maid insurance policies are required to pay for hospitalisation costs and surgical expenses, including day surgery costs. Additionally, pre-hospitalisation medical consultation and diagnostic services as well as post-hospitalisation follow-up treatments may be covered by some policies.
Unfortunately, the medical insurance plan for your maid may not cover all conditions and exclude pre-existing conditions or injuries. So, before hiring a maid, it is wise to inquire about her medical background. Maids may be required by employment agencies to disclose any existing medical issues so that their employers are aware of them.
The following are exclusions from medical insurance:
- Addiction to drugs or alcohol
- Contraception
- Pre-existing conditions
- Nursing care
- Psychiatric conditions
- Cosmetic surgery
- Braces and prosthetic devices
- STD treatment
- Pregnancy (which could result in revocation of work permit)
- Regular dental care (cleaning procedures and tooth extractions)
Employers are prohibited to let their maids to pay for their medical costs and bear most of the fees to maintain their maids. MOM advises employers to buy insurance plans with higher coverage to protect themselves from high medical expenses.
Personal Accident Cover When a Maid is Injured
According to the Ministry of Manpower, PAI coverage must be at least $60,000 per year. When there is an accident causing the maid permanently disabled or dead, this payment will be provided. For injuries brought on by an accident, some insurance policies may additionally pay for dental care or Traditional Chinese Medicine (TCM) treatments.
Alternative Domestic Help Benefit to Hire Substitute Maid
Some insurance policies will pay you a daily allowance to hire a replacement or alternative maid if your maid is hospitalised as a result of an illness or injury. Different plans have different durations and daily allowance amounts.
Wage Compensation and Relief
Some insurance policies can reimburse you for your maid’s pay if she is hospitalised due to an illness or injury that refrains her from working. The policy will cover a part of your maid’s salary while she is recovering because getting sick is the last thing she would want to experience.
Repatriation Costs to Help Maid as She Returns to Her Country
If you have to repatriate your maid as she is permanently disabled and is unable to work anymore, certain maid insurance policies will pay you some money. If she passes away because of an illness or injury, the expenses for burial or cremation in Singapore as well as transferring the body or ashes back to her place of origin will also be covered. Without this coverage, the procedure might be quite costly at thousands of dollars.
Third-Party Liability in case Maid Unintentionally Harm Others
Anyone can have a bad day, even your maid who may have unintentionally hurt someone or damaged someone else’s property. Even though it was an accident, the employer will typically be responsible for covering the costs. Some insurance plans will protect you from lawsuits brought about by your maid’s recklessness while doing her duties. The coverage of the amount will be different depending on the insurance.
Maid’s Personal Belongings in case of Loss or Damage of Their Items
Nowadays, most people would have a smartphone, including our maids too. They are able to contact with their families who reside far away using these mobile devices. Some maid insurance plans provide coverage for your maid’s personal items. For the loss or damage of their properties caused by insured occurrences, these claims could be in the range of $300 to $500.
Replacement of the Maid due to Unexpected Reason
An employer sometimes may have to replace the maid for certain unforeseen circumstances such as sudden death or a serious disability. Thankfully, some insurance plans may reimburse the agencies to hire a replacement maid for you. Keep in mind that only serious reasons can be used to end the contract.
The Costs of a Maid Insurance Policy in Singapore
Although maid insurance is mandatory when you hire a maid, but do not rush to make your decision in purchasing the insurance. You should compare that insurance policies and thoroughly consider your options. To discover the best maid insurance protection, you may check for the insurer’s evaluations online as well as considering the premium costs. The cost for a 26-month plan could be in the range of $250 to $390 (excluding GST).
How to Choose the Best Insurance Policies for Your Maid?
It might not be as simple as it sounds to get the best maid insurance plan. This is due to the fact that different employers prioritise different things. Some may want to buy a lower-cost policies as long as it fulfils MOM standards, while some seek for additional perks or coverage. However, if you are searching for the best maid insurance, choose the plans that offer greater medical coverage for your own peace of mind.
Your agency can help you if you wish to avoid the trouble of comparing insurance policies. Some agencies have collaborated with insurance companies. They provide maid insurance along with the hiring contract. You may opt-out and handle the relevant paperwork on your own if you wish to purchase insurance plan that is vary from the one provided by the agency.