One of the requirements for hiring a foreign domestic helper is that you must buy maid insurance. This is an insurance policy that covers any work-related medical care and accident charges which are sustained by the helper.
Insurance aims to protect the helper and her family. If she suffers a permanent disability and immediate death, then she or her family can receive lump sum compensation. In this article, we will know more regarding the maid insurance policy.
The Policy Structure of Maid Insurance
As a general rule in maid insurance Singapore, the insurance companies offer a 14 or 26-month insurance program with options to buy various add-ons or different tiers with various price structures that you can select.
The extra two months of coverage which is non-chargeable is to insure your maid for an extra two months after the expiration of her contract. This is in the case where repatriation is not immediate. Meanwhile, most plans will offer a letter of guarantee for the mandatory $5,000 security bond, as required by the Ministry of Manpower (MOM).
Compulsory Coverage
Since it is required by the Ministry of Manpower to fulfill the basic requirements, the majority of the employers assume that the coverage is now sufficient. But this is not always the case in maid insurance Singapore.
If you think about the following add-ons which do not cost that much, you can save more money in the long run. This is true if an accident befalls upon your domestic helper.
Apart from the prerequisite requirements, the majority of the coverage offered by insurance companies includes benefits such as the items included below:
Expenses for Replacement Maid
Should your domestic helper’s services be terminated due to permanent disability or even death, this will cover the agency fees in processing a replacement.
Outpatient Expenses
In the basic policy required by the Ministry of Manpower, outpatient expenses are not included. As such, it is important to determine how much the coverage is when the outpatient treatment is needed.
Personal Belonging of Domestic Helper
One coverage of the insurance at HLAS is that of the domestic helper’s personal belongings. This includes damages or theft to things like smartphones, laptops, jewelry, or others.
Repatriation Expenses
If your domestic helper becomes permanently disabled or if she dies, she or her family will be provided with a repatriation payout. This will include the cost of her trip to her country or family. Indeed, the process can be costly especially if the domestic helper is uninsured.
Theft
This one will protect your family and personal properties from theft committed by your domestic helper.
Third-Party Liability
This one will provide indemnity in expenses incurred due to accidental bodily injury to third parties. It also includes accidental damage to the properties of the third parties as committed by your domestic helper.
Wage Compensation
This will cover your helper’s wages if she is unable to work due to hospitalization. Depending on the policy at HLAS, this is paid daily and capped at a certain limit at a specific amount of time.
Important Exclusions
Just like other types of insurance, there are various elements that insurers will not cover. As a general rule, your domestic helper will not be covered for venereal diseases, pregnancy, psychiatric, or suicide-related expenses.
Moreover, permanent disability coverage is tied to a scale. The reimbursement depends upon the severity of the disability. This can range from the loss of a limb up to total body paralysis.
With the various maid insurance policies available in the market and are priced reasonably, it is best to get one that you think will best meet your needs. If you purchase the insurance with the use of credit cards, you can also enjoy special rates.
The Required Security Bond for the Foreign Domestic Helpers
Each employer is required by law to have a bond for her for a foreign helper. This security bond is the employer’s pledge to pay the government with a stipulated sum of money should the employer fail to meet the terms of the contract.
For example, each employer is required to pay the repatriation expenses of the domestic helper to her home country whenever her contract ends. This puts the burden on the employer to make sure that the helper gets to her home country whenever her contract ends. A security bond amounting to $5,000 is required to be paid by the employer to the Ministry of Manpower before arriving in Singapore.
Meanwhile, if you are hiring a Filipino domestic helper, you will have to pay a $2,000 or $7,000 bond deposit to the Philippine Embassy. If you are hiring a domestic helper via an accredited agency, then you will have to pay a $2,000 bond. But if you will hire the helper directly yourself, then you will have to pay a $7,000 bond.
