Step by Step Guide: How To Choose Maid Insurance By Coverage Needs
Our recent article which highlighted Changes In Maid Insurance Coverage from 1 July 2023, touched on MOM’s enhanced minimum medical insurance requirements for all new and existing migrant workers, including maids. The annual claim limit for medical insurance has been increased to a minimum of S$60,000, up from the previous S$15,000. This means that employers are now required to purchase maid insurance plans with higher coverage limits.
What Is A Maid Insurance Plan?
Although maids are often referred to as domestic workers or foreign domestic workers (FDWs), MOM has also recently changed the terminology for live-in household maids from Foreign Domestic Worker (FDW) to Migrant Domestic Worker (MDW). An insurance plan for a maid, otherwise known as a MDW, typically includes:
- Hospitalisation and surgical expenses
- Outpatient medical expenses
- Daily hospital allowance
- Wages compensation
- Death and disablement benefits
- Personal accident benefits
- Liability coverage
- Repatriation expenses
However, some plans may be more comprehensive or simplified, thus, there may be more or less components to be insured as compared to the list above. So when choosing a maid insurance plan, it is important to compare the different plans offered by different insurers. Additionally, you should also consider the specific coverage that you’ll need for the domestic helper you’re hiring.
Is it necessary and how does it help me?
It is necessary to get maid insurance in Singapore. It is a legal requirement for all employers of all live-in household maids to purchase a maid insurance plan. The insurance plan provides financial protection for your MDW in case of an accident, illness, or death.
Here are some of the ways maid insurance can help you:
- offset your MDW's medical expenses, such as hospitalisation, surgery, and outpatient treatment
- provide a daily hospital allowance to help cover your MDW's living expenses while they are in the hospital
- compensate you for lost wages if your MDW is unable to work due to an accident or illness
- provide a death benefit to help you cover the cost of your MDW's funeral and other expenses
- give some form of liability coverage in case your MDW is injured while working for you
When should I get a maid insurance plan?
If it is convenient and affordable for you, it’ll be good to get your maid insurance as soon as you sign the contract with the maid agency to hire a maid as it is a mandatory requirement by MOM to provide medical and personal accident insurance coverage for your maid.
Typically, you should arrange for the insurance before your maid arrives in Singapore to ensure compliance with regulations and to protect both you and your maid in case of accidents or emergencies.
How much does a maid insurance plan cost?
The cost of maid insurance plans varies depending on the coverage, the insurer, and the duration of the policy. You can expect to pay between S$180 and S$450 for a 14-month policy, and between S$240 and S$540 for a 26-month policy.
What Does Maid Insurance Cover?
As maids typically come from countries such as Indonesia, the Philippines, Myanmar, and others, and they assist with various household tasks, including cleaning, cooking, childcare, and elderly care, they’ll need varying levels of insurance coverage, depending on their work experiences, and healthcare needs. The maid insurance plans which are available in Singapore usually covers the below, but is not limited to:
Hospitalisation and surgical expenses, daily hospital allowance and related medical expenses
Coverage for medical expenses related to hospitalisation and surgery due to illness or injury suffered by the maid while working in Singapore, as well as outpatient medical expenses and daily hospital allowance is usually included in most maid insurance packages. The mandatory coverage for all maids who are Work Permit and S Pass holders is to have a minimum annual medical insurance coverage of $60,000, with 25% co-payment by employers for claim amounts above $15,000.
Security bond
A security bond with MOM is needed as part of the work permit application process, and certain insurance policies include coverage for this bond, ensuring that the employer can recover the bond amount if the maid breaches her contract.
Personal belongings
Some policies may offer coverage for loss or damage to the maid's personal belongings, such as clothing or personal items.
Termination and re-hiring expenses
In case of early contract termination or the need to hire a new maid, some policies may cover associated expenses, such as agency fees or repatriation costs.
Alternative help benefits
If the maid is hospitalised, some policies may offer coverage for hiring temporary help to assist with household chores during her absence.
Wage compensation for home leave
Some policies provide coverage for the maid's salary during her approved home leave in her home country.
Death and disablement benefits
The death benefit provides a lump-sum payment to the maid's designated beneficiaries or next of kin in the event of her suffering permanent disability due to an accident while at work or accidental death during her employment. This payment can help cover funeral expenses and provide financial support to the maid's family in her home country.
Personal accident benefits
These benefits are intended to provide protection to the maid herself in the event of an accident or injury during the course of her employment. It covers medical expenses, hospitalisation, and compensation for accidental death or disability suffered by the maid while working or off-duty.
Liability coverage
This aspect is designed to protect the employer (the person hiring the maid) against legal liabilities arising from accidents or injuries caused by the maid to third parties, and helps cover the employer's legal expenses, compensation claims, and other costs associated with such liability.
Repatriation expenses
It covers the cost of repatriating the maid to her home country in the event of injury, illness, or death during her employment in Singapore.
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Steps To Picking Maid Insurance By Coverage Needs
Here's a step-by-step guide to help you choose between different maid insurance policies with varying levels of coverage.
Step 1
Identify your needs
List down the coverage areas that are most important to you. Consider medical expenses, personal accident coverage, repatriation costs, liability coverage, and any other specific needs you might have.
Step 2
Compare coverage limits
Different insurance policies offer varying coverage limits for different benefits. Ensure that the coverage limits align with your expectations and requirements. For instance, higher medical coverage limits can provide better protection.
Step 3
Check personal accident coverage
Check the personal accident coverage, including disability and death benefits. Make sure these benefits are substantial enough to provide financial security in case of accidents.
Step 4
Evaluate claims for medical expenses
These expenses will include outpatient treatments, hospitalisation, surgery, and doctor visits. Look for policies with a wide range of medical services covered.
Step 5
Consider repatriation cover
If your maid needs to be repatriated due to serious illness, injury, or death, ensure the insurance policy covers the associated expenses. Repatriation can be costly, so having this coverage is important.
Step 6
Think about wage compensation
Some policies offer coverage for wage compensation if your maid is unable to work due to illness or injury. Check the coverage duration and amount provided.
Step 7
Have third-party liability coverage
Verify that the policy includes coverage for your liability towards third parties for injury or damage caused by your maid. This is especially important in case of accidents involving others.
Step 8
Include or exclude additional benefits
Some policies offer optional add-ons or additional benefits, such as coverage for theft by the maid or replacement maid expenses. Assess if these extras align with your needs.
Tips To Minimise Costs On Maid Insurance
Saving on maid insurance in Singapore while still maintaining adequate coverage requires careful consideration and comparison. It is also important to review your coverage annually to ensure you're not paying for benefits you no longer require as your needs and circumstances may change every year. Here are some tips to help you save on unnecessary maid insurance costs:
Tip #1 Compare multiple policies
Obtain quotes from multiple insurance providers and compare their coverage and premiums. This will help you identify policies that offer good coverage at a more affordable price.Tip #2 Opt for basic coverage
Evaluate your needs and consider opting for a policy with essential coverage rather than extensive add-ons to help lower your premium.Tip #3 Higher deductibles
By choosing a policy with higher deductibles (the amount you need to pay before the insurance kicks in), you may save some money on your annual premiums.Tip #4 Bundled policies
If you have other insurance policies like your home or car insurance which you have bought from the same insurance provider whose maid insurance package appeals to you too, check if they are able to offer their maid insurance at a discounted rate for you when bundled with other policies.Tip #5 Consider annual payments
Some insurers offer discounts if you pay your premium annually instead of monthly. Calculate if this option results in overall savings.Tip #6 Loyalty and renewal discounts
Inquire whether the insurance company provides loyalty discounts or other related incentives for renewing your maid insurance with them consistently.Tip #7 Safety measures
Implement safety measures in your home to reduce the risk of accidents. Some insurers might offer discounts if you have safety devices like fire extinguishers or safety gates.Tip #8 Policy term length
Opt for a policy with a longer term if you intend to employ the same maid for an extended period. Some insurers offer discounts for longer policy durations.Tip #9 Group Insurance
If you have friends or family members who also employ domestic helpers, check if the insurer offers group discounts for multiple policies.Frequently Asked Questions
When should I get a maid insurance plan?
- You should get the insurance before your maid arrives in Singapore to ensure compliance with regulations and to protect both you and your maid in case of accidents or emergencies.
Can I get coverage for the security bond with MOM?
- Yes. Although not all maid insurance plans provide coverage for the security bond with MOM, certain insurance policies do include coverage for this bond, ensuring that the employer can recover the bond amount if the maid breaches her contract. Do note that a security bond with MOM is mandatory by law, as part of the work permit application process.