August 3, 2021

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All You Need to Know About Domestic Helper Insurance

Hiring a domestic helper in Singapore is quite expensive. Buying maid insurance is one of the yardsticks for hiring a foreign domestic helper. In Singapore, it is obligatory for employers of domestic helpers to purchase maid insurance, which covers medical, personal accident, and liability coverage. It is made compulsory by the Ministry of Manpower to safeguard the interests of domestic helpers in Singapore. This domestic helper insurance protects your helper and her family by giving lump sum compensation if she suffers from death due to an accident or permanent disability. The amount is to be paid to your domestic helper or her legatee.

Compulsory Coverage as Per the Ministry of Manpower

You Are Required by Law to Make the Following Compulsory Coverage for Your Domestic Helper:

  • Medical insurance coverage of $15,000 per annum, it covers inpatient care and day surgery expenditures.
  • Personal accident coverage of $60,000 per annum covers sudden unforeseen events resulting in permanent disability or death.
  • It covers a mandatory security bond of $5000 for your domestic helper.

Most employers find compulsory coverage to be adequate. But if you want to cover more for the domestic helper, you can opt for add-ons. It will help you save more in the long run. Most maid insurance plans are categorised into three tiers-basic, mid, and top tiers. Higher tier provides higher coverage.

Durations of Maid Insurance Schemes

There Are Two Durations Of Domestic Helper Schemes:

  • 14 months
  • 26 months

You can either opt for a 14 months scheme or 26 months scheme. There are various schemes and add-ons available too. The add-ons have different price structures to fit your budget and insurance requirements. If you are buying a maid insurance scheme for the first time and not sure about what to buy, you can opt for the 14 months scheme first. But the 26 months scheme will be cheaper and may come with discounts.

The schemes provide for 14 months and 26 months coverage instead of 12 months or 24 months as the Ministry requires Manpower. The law provides for extra two-month coverage to insure your domestic helper for auxiliary two months after the expiry of her duty, in case her repatriation is not prompt.

When Should You Buy A Maid Insurance Policy?

The policy starts within five days of purchase date and fourteen days from the application date.

The Start Date of the Insurance Is Classified into Three Categories:

  • In the case of new maids, the start date of the insurance policy is the day when your maid arrives in Singapore.
  • In the case of renewal maids, the start date is one day after her present work permit expires.
  • Transferred maids, the start date of the policy is on or after the time you appeal for a transfer with the Ministry of Manpower.

Benefits to Be Covered by Maid Insurance Plans:

  • Maid’s Personal Belongings: Some insurance policies will cover theft or damages of your domestic helper’s personal belongings such as Smartphone, laptops, and jewelry. It will provide compensation to protect your maid’s personal belongings.
  • Replacement Maid Expenses: If you are forced to hire another maid if your maid’s contract is terminated due to severe events like death or permanent disability, the benefits policy will cover the cost of replacement.
  • Theft: This protects you and your family’s property and belongings from theft perpetrated by your maid.
  • Repatriation Expenses: If your maid dies or is permanently disabled, some insurance policy will provide you with a repatriation payout to send her and back to her home country. It is mandatory to send her back to her family in such cases. These costs can be quite costly if not insured.
  • Wage Compensation: Some insurance maid policies will provide you with a small day-to-day allowance per day for the period your domestic helper is hospitalised or unable to work. This will compensate you for your maid’s wages so that she can still earn her salary while she is recovering.
  • Outpatient Medical Benefits: The basic MOM policy does not cover this. Maid insurance policies in Singapore should not only provide coverage for hospitalisation but also outpatient expenses. Outpatient expenses coverage means that if your maid visits a hospital without being admitted, the medical bill expenses can still be reimbursed by the maid insurance company. But these expenses are generally only covered in case the injury is caused due to an accident.
  • Dental Expenses: In this part, most insurance companies do not provide dental expenses. However, a higher tier of the scheme will provide for such kinds of costs.
  • Third-Party Liability: The basic plan covers it up to $5000. This provides indemnity against expenses caused by your maid accidentally injuring a third party or causing damage or loss to a third party’s property. It will cover the cost of legal representation and the damage claim against the third party’s destruction.

There are certain expenses that most maid insurance policies will not cover. No insurance company in Singapore will provide coverage against any psychiatric, pregnancy, venereal, or suicide-related costs. Also, the coverage for permanent disability of domestic helpers is limited to a scale. Reimbursement for permanent disability pivots on the seriousness of the disability, ranging from the loss of a hand to full body paralysis.

Make Sure to Collate Domestic Helper Insurance Policies Ahead of Choosing One

Employing a housemaid might not be affordable. Luckily, domestic helper insurance policies are! Always collate the best domestic helper insurance schemes in Singapore before perpetrating one.

To Sum It Up

Knowing what kind of coverage your maid insurance provides, the add-ons and discounts offered by it, what the policy covers for outpatient expenses are essential. Then how do you choose the best maid insurance? If you are looking for domestic helper insurancethat fits your purpose and budget, then HLAS have got you all covered. They offer the best policies and discounts to make your insurance policy budget friendly. Theyprovide you with a customised selection of benefits keeping in view the MOM requirements. Also, you can find here their insurance schemes and offerings.