There are quite a few legal responsibilities to be met when employing a Foreign Domestic Worker or Maid. A key liability is for the employer to bear the costs of the full medical needs of your maid. To limit financial consequences and to comply with the other requirements set by the Ministry of Manpower (MOM), many insurance companies have developed Maid Insurance policies. On our website, we have a wide selection of them available for you to filter, compare and buy directly online.
So immediately the next question begs itself: What else do I need to look out for when buying a Maid Insurance? Which one should I choose?
Filter What You Need In The Policy
Although not overly complicated in nature, Maid Policies, like any other, are different and that sometimes makes them quite difficult to compare. We have built a comprehensive rating model that will hopefully be able to help you with your selection. Before we go into the actual scores, we want to explain how we actually work out the ratings in our baseline scoring model. Let’s first review of the major risks that are covered.
Personal Accident Coverage
As an employer, you are required to purchase personal accident insurance coverage for the maid, and the minimum sum insured as required by MOM is S$40,000. The amount is claimable should your maid suffers death or permanent disability due to accidents.
Medical Insurance Coverage
MOM also requires all foreign domestic workers to have a minimum medical insurance coverage of S$15,000 a year. Some policies go as high as S$60,000 though. Medical expense coverage can help you pay your maid’s bills if she requires medical treatment. As mentioned before, your liability does not stop at S$15,000 (nor does it at S$60,000).
This is more of a service than insurance. The insurance company will issue a Letter of Guarantee for a S$5,000 on your behalf to Ministry of Manpower so that you don’t have to put up a cash deposit. However, you are still liable for the S$5,000 if you fail to repatriate the maid. An optional waiver of indemnity limits your S$5,000 bond liability to a much smaller amount, usually somewhere around S$250, if the breach of the bond is not due to your negligence or fault. Since you pay an additional premium for that, we exclude this feature in our rating model, so as to keep the policies comparable. It is of course optionally included in the policy.
This covers matters such as legal or third party liability resulting from your maid’s accidental negligence, coverage for termination expenses when your maid is certified unfit for work by a medical practitioner either due to injury or illness or repatriation expenses which covers the expenses for repatriating your maid’s body or ashes due to an accident or illness that results in death.
So how do you tell which has the widest range of features, and which offers the best value? Here’s how we did it.
- How we choose what we review
- How we test the policies
- Rewarding policies that stand out most
- Finding Value-For-Money Premiums
- How we recommend
1. How we choose what we review
Our maid insurance review currently covers every policy we can sell to you. To that, we have added 1 or 2 more popular policies of insurers with a large market share in Singapore so that you have the full overview of what is available on the market.
2. How we test the policies
We look at every aspect of a maid insurance policy to see which one stands out from the pack. Policies are scored out of 100, with points allocated in the following areas:
Medical: 45 points
We think that this is the meat of a maid insurance policy. The most weight is given to hospital and surgical expenses. The figure we use is the maximum dollar amount your insurer will pay out in a year. In this section, we also give additional scores to other medical benefits such as recuperation benefits, outpatient expenses and ability to use TCM.
Personal Accident: 35 points
This section defines what your maid will get if encounters disability in some form or way after an accident. Do note that if the cause of death or permanent disability is not due to an accident (eg. illness) you cannot make a claim under this category. In our rating, we have put in extra weight on total disability (versus the loss of fingers or other parts) since this will render the maid continuing her work very improbable and will have far-reaching financial consequences for her.
Other Benefits: 20 points
In this section, we give scores on all the other benefits. Some policies cover for one or more critical illnesses, such as infidelity (theft) by the maid, third party liability, cost of making alternative arrangements when your maid is hospitalised and certain costs related to the death of your maid.
Finally, we may add or take out points for what we qualify as anomalies. These are benefits that are not common to other policies (positive) or those that are absent (negative) where we would expect these to be part of the basic package.
3. Rewarding policies that stand out most
We give scores to policies based on the areas where they differ from each other most. Policies can differ in many ways, and no single policy could possibly encompass everything. Which also means, we don’t expect any policy to even score 100 points. This will help to make scores more comparable and understandable.
4. Finding Value-For-Money Premiums
For the Coverage Score, we don’t take premiums into account when rating the policies. Once you have set your own budget range we help you in comparing the value-for-money score offered by each plan, which compares the score to price. When you go into our portal, you will see that every policy has a Value for Money score. That score shows you which policy provides the best-value-for-money plan, but of course, this is based on your set budget. By setting a price range under the preference panel on the left side of the page, you can easily find the best value-for-money policy according to your preferred budget.
5. How we recommend
We don’t recommend. We just present our professional interpretation based on the product offerings of each policy. The choice is all yours. With the preferences panel, you can set your own preferences and priorities and based on that, we present the policies for you through the ranking order of price, coverage score or value-for-money score.
Are you ready to buy now?
Head on over to our Maid Insurance comparison pages and start filtering, comparing the policies based on your needs. Simply hit the buy button to get the policy directly online!