Maid insurance is the government-mandated coverage that covers you from both work-related & non-work-related damages. Maid insurance was first made mandatory mostly by the Ministry of Manpower in January 2009, with health insurance of S$5,000. From October 2017, though, the minimum coverage needs have been doubled to S$15,000 in medical coverage & S$60,000 in term insurance coverage. Now there are 18 insurers that offer a wide variety of maid insurance policies, ranging from basic personal and medical injury coverage to comprehensive coverage for items like burglary protection & termination costs.
This tutorial describes what maid coverage is required, what it covers and what it doesn’t cover, & why you might need it. In Singapore, there are around 250,000 FDWs. About one in every five Singaporean households employs a maid to help with daily chores. Domestic helper insurance provides you, the employer, with financial protection as well as advantages for the maid in the event of an accident. We’ve put together a list of five scenarios when maid insurance could be useful.
Maid Insurance: Why Do You Need It?
Because the Workman Accident Companies Bill doesn’t cover international, domestic workers, the government forces you to buy one as quickly as you recruit one. It means that you are also an employer and liable for almost all of the domestic worker’s medical bills as well as her overall health. The FDW would be living & working in your home, maid insurance that protects you from any expenses incurred by her, even if they’re not related to her job.
Although maid insurance may appear to be an additional cost on top of a long list of costs, it may really save you money by allowing you to cover a number of charges other than hospital costs. Simply replacing the current FDW with such a new one, for example, might cost you thousands of dollars in hiring and training expenses. In such instances, a S$327 maid insurance coverage would’ve been able to compensate you for those expenses, more than covering the cost of the policy.
Structure of a Maid Insurance Plan
Many plans offer three tiers of coverage, with coverage quantities and premiums varying between them. The lowest tier often provides the least level of exposure and excludes certain charges such as wage compensation and outpatient care. On the other hand, cheaper insurance is more likely to provide a broader area of varieties for a greater premium. Personal damage or long-term disability coverage of at least S$60,000 & hospitalization insurance of at least S$15,000 are required in all policies.
Most policies also include S$10,000 in repatriate expenditure insurance and a certificate of assurance for the Board of Manpower’s S$5,000 protection bond. You have the choice of purchasing insurance for 15 or 28 months, as well as different add-ons. The Ministry of Manpower needs your farm servant to be covered for two months after her work visa expires in the event she also isn’t deported immediately; that’s why these insurance packages come with an additional two months of insurance. For the two months longer, insurers may not levy a premium.
Exceptions to the Rule
Whenever it comes to the domestic helper and with any insurance plan, there are a few situations that insurers will not cover. Psychiatric, venereal illness, dental decay, pregnancy, and suicide-related charges will not be paid, with the exception of a few exceptions. It’s also a good idea to be aware that permanent disability insurance is based on a sliding scale. That means that the amount of compensation you receive is determined by the degree of your disability (total paralysis is 100 percent of the sum insured, whereas a loss of a finger is only 2 percent -6 percent of the sum insured). You would not be compensated for any measures taken against your domestic helper; it suffices to say. It’s a good idea to study the policy terms before buying maid insurance to understand and comprehend what’s covered.
How to Choose the Right Insurance Policy
Knowing what you’re doing with your maid insurance policy is the greatest approach to get the proper one for your requirements. Whereas most employers will supply you with coverage when you engage your domestic helper, you will have the option of shopping around for covers when it comes time to renew her agreement or hire her directly. You have a few options in this scenario when it comes to picking a policy. For example, if saving money is the primary focus, you have a wide range of budget options from which to choose.
You might seek policies that concentrate their coverage on specific situations if you’re appointing a private maid and want to be protected from specific fees (such as liability, miscellaneous medical bills, or replacement costs). If you’re unsure where to start when it comes to maid insurance, check out the guide.
How to buy critical illness insurance?
Like any other insurance, critical illness insurance offers insurance for just about any accidental drowning, chronic illness, injury, or healthcare expenditures incurred as a result of a personal injury, up to S$70,000 throughout this case.
Suppose you’re in the hospital and require surgery. Medical costs can cost as much as S$1,150 a day for government hospitals and S$5,400 for premium hospitals in Singapore. Select maid insurance that covers your maid for upwards of S$15,000 each year, ensuring that she receives the finest medical care and recuperation possible throughout her time that need it.
To Sum It Up
When it comes to terminating & rehiring, there are a few things to keep in mind. According to Ministry of Manpower (MOM) 2019 data, just one out of every three foreign domestic workers (FDWs) fulfilled their agreements. The remaining two were dismissed before the end of the year. That’s also due to unavoidable deaths, persistent disability, or workplace conflicts. MOM is searching for ways of improving the lives of FDWs while also ensuring that employers are matched with the right candidates. If you are a novice in hiring a maid, then hopefully this guide has helped you a lot to know the best maid insurance policies.