You are tired. It is the end of a long day at work and you sit in the peak hour traffic jam. Knowing you will be returning to a clean home, dinner ready, kids bathed and fed by your helper, is a consolation. Since it is mandatory to have an insurance for your Maid, we have created a “Maid Insurance information guide”.
The Ministry of Manpower (MOM) makes it compulsory that employers purchase minimum coverage. Under the MOM (Ministry of Manpower) law, employers must purchase coverage for medical and personal accident insurance. This insurance must be purchased even before the helper arrives in Singapore. The minimum requirements for medical and personal accident insurance are:
- medical insurance coverage of minimum S$15,000 per year for inpatient care and day surgery.
- personal accident insurance with a minimum sum assured of at least S$40,000 per year. This is to protect your helper and her family in case of an accident that results in permanent disability or death. However, from 1 October 2017, a coverage of minimum sum of S$60,000 per year is required. The compensation should be made payable to her or her beneficiaries
What is a security bond?
The other compulsory requirement by MOM is a security bond of up to S$5,000. The bond, which is like an insurance, is a binding pledge whereby your bond will be paid to the government if you break the law or the conditions governing the employment of a helper. You are required to purchase a bond for every helper you employ. However, if your helper is from Malaysia, then a bond is not necessary.
The bond needs to be purchased before your helper arrives in Singapore. Medical and personal accident insurances and the security bond are bought as a package. Insurance Market offers the possibility to include or exclude the bond upon comparing and purchase of a Maid Insurance policy.
Upon purchase of the security bond, the insurer will send the details to MOM electronically. The processing usually takes three working days. It’s pertinent for MOM to receive this before your helper’s arrival. Otherwise, her entry into Singapore will be denied.
The security bond can be discharged when you terminate your helper’s employment. However, the following conditions should be met:
- you have cancelled the Work Permit
- your helper has returned home
- you did not breach any of the conditions of the security bond
If the above are met, the security bond is usually discharged the week after your helper leaves Singapore. There are, however, circumstances where your security bond may be forfeited. These are as follows:
- you or your helper violate any of the conditions of the Work Permit or security bond
- you don’t pay her salary on time
- you fail to send her back when her Work Permit is expired, revoked or cancelled, or if she goes missing
- only half of the security bond (S$2,500) will be forfeited if you have made reasonable effort to locate your missing helper and have filed a police report
However, you will not be liable for your helper’s violations if you can prove that you have:
- informed her of the Work Permit conditions that she must comply with
- reported a violation as soon as you become aware of it
What are the additional coverages?
On top of the compulsory insurances, 2 useful additional coverages are:
- Waiver of Indemnity – with this, you will only need to pay any excess amount in the event that your security bond is to be forfeited by MOM
- Performance bond – Filipino maids must be registered with the Philippines Embassy with an authenticated contract, supported by a performance bond.
Buying Maid Insurance
Especially, if you are a first-time employer, it is a good idea to seek the advice of your friendly broker on additional insurance coverages. You can contact Insurance Market by phone, email or chat. For a quick comparison of what is available, compare Maid policies side by side. Now you know all there is to compare and buy Maid Insurance. You have all the information to renew maid Insurance on your own. Did you know you save money if you get Maid Insurance yourself?