Nowadays, in Singapore, having a domestic helper is not only limited to elite class families. Studies show that almost 1 out of 5 households in Singapore hire foreign domestic workers (FDW) to keep their domestic work running smoothly. The Ministry of Manpower (MOM) in Singapore has made it compulsory for all employers to purchase valid insurance coverage on behalf of their workers for their ultimate well-being. It’s quite sad that, although being a mandated policy by the MOM, most Singaporeans are still not aware of it as car insurance. Therefore, continue to read this article to get a complete idea of buying maid insurance online.
How Does Maid Insurance Work in Singapore?
Maid insurance in Singapore is beneficial for both employers and workers. Buying this at the right time protects you against huge unforeseen expenses on hiring a new maid or renewing your maid’s permit. This government-required insurance policy provides your foreign domestic worker’s belonging protection, medical charges, accident coverage, and consigns thee MO, M. Under the Maid Insurance Policy in Singapore, the employer has to compensate a lumpsum amount to the maid’s family if any unexpected situation occurs, like the maid’s death or permanent disability caused by work-related accidents.
What are the Minimum Insurance Coverage Requirements for A Foreign Domestic Worker in Singapore?
Every employer must purchase the worker minimum Insurance Coverage in Singapore as mandated by MOM:
- Minimum $15,000 yearly medical coverage, including hospitalization and surgery cost
- Personal Accident Insurance with at least $60,000 yearly coverage
- A security bond of a minimum of $5,000 for foreign domestic helpers
Most Singaporeans hire domestic workers based on a 2-year contract for saving around 30% yearly expenses. Although, in Singapore, maid insurance policies are usually available for 2 types of tenures, it can be 14-month or 26-month periods.
Can You Get a COVID-19 Protection Plan For Your Non-Malayasian Worker?
In this pandemic situation, the first question that comes to your mind is, does maid insurance cover covid 19? Then, let’s make it clear that from January 1, 2021, MOM in Singapore has mandated that all arriving foreign domestic workers (FDWs) must have a COVID-19 protection plan.
In this regard, MOM has released a notification that every foreign domestic worker must have medical insurance coverage of at least $10,000 if he or she tests covid positive or arise any symptoms within 14 days of reaching Singapore.
Do You Have To Purchase Separate Insurance Plan For Covid Affected FDW?
No, it’s not mandatory in Singapore. Since most maid insurance already covers medical expenses, you don’t need to purchase an additional COVID-19 insurance plan for your domestic worker. Therefore, if your insurance plan already covers COVID-19 related medical expenses, then you may not have to purchase a new COVID-19 insurance plan.
In case if you want a COVID-19 special plan, then there is another way! Some Insurance companies have come up with COVID-19 add-on plans, which will provide added coverage at an additional premium. Keep in mind that these add-on plans offer a total distinct medical benefit (COVID treatment cost) separate from the included benefits in the main plan.
What Are the COVID-19 guidelines for FWD in Singapore?
Being an employer, you have to pay for the following in the ongoing pandemic phase.
- COVID-19 test cost on arrival at the airport, $160 per person
- Quarantine charges at respective SHN facilities, $1,500 per person for 14 days
- COVID-19 test during quarantine days, $200 for each person
Tips To Get Budget Insurance Plan
- If you feel the available medical benefit in the maid insurance plan is not enough for covering the whole COVID-19 expenses, try to add only the medical benefits in the main plan. It will help to raise extra funds and is going to be on the cheaper side.
- With the latest requirements and add-on fees, paying a foreign domestic worker is not at all cheap! Therefore, take the help of the costing guide available online for hiring maids in Singapore to have a good estimate regarding total expenditure.
- Lastly, check out the comparison tools available online to easily get an insurance plan which best suits your budget and needs.
What Is The Right Time To Buy The Security Bond?
It’s very important to get the security bond at the right time if an employer in Singapore wants to have maid insurance without any agency’s assistance. The insurer generally covers the security bond, which replaces the deposited amount of S$5,000 by you to the MOM.
The employer needs to ensure that the respective insurance company sends all the details regarding the security bond to the MOM before the arrival of your foreign domestic worker. The whole processing takes nearly 3 working days. If the Insurance Company fails to do so, then the worker’s entry into Singapore will be rejected. Additionally, it will be the employer who has to give payment to send her back home.
Is Critical Illness (CI) Coverage worthwhile?
Undoubtedly, getting a critical illness insurance plan in Singapore is all worthy. This can help you to fill the whole insurance protection gap. Studies show that Permanent Residents of Singapore have about 80% critical illness protection gap. It simply means most Singaporeans neglect the necessity of critical illness protection.
The next question comes to our mind that how much critical illness cover do I need in Singapore? The Critical Illness (CI) insurance gives a payout in the severe stage of claims like major cancer, heart attack, stroke, kidney failure, or bypass surgery. The CI payouts work differently according to the policy. If needed, the CI policy can provide a lump sum amount at a very early stage or offer multiple payouts throughout the different stages of the disease. It will be wise to start your CI coverage plan as early as possible to focus on the recovery and avoid unfortunate occurrences.
Final Verdict
In Singapore, most maid insurance policies are classified under 3 tiers based on the cost and coverage level: basic, mid, and top tiers. For getting higher coverage, opt for the higher tier. Search online and compare to find the best maid insurance policies in Singapore, and then apply. This will save you a lot of time and money.
Finding the best maid insurance policy in Singapore can be quite confusing, especially for beginners. Therefore, most of the household owners of Singapore take help from the agency that has tied up with the various insurance companies for a hassle-free hiring process.