Every employer who intends to have a foreign domestic maid has to get maid insurance. This is a requirement by the Ministry of Manpower (MOM). Maid insurance for domestic helpers should cover hospitalization, personal accident insurance, and security bonds.
The security bond is $5,000, personal accident insurance is at least $60,000 annually, and at least $15,000 for hospitalization and surgery. These are the standard insurance coverage as required by MOM.
Insurance companies charge a premium of between $200 – $400 for 14 or 24 months. Cheap maid insurance may not have as many benefits, but if it fits your budget, there is no harm in it. The only challenge is you risk paying large sums out of pocket if the insurer doesn’t cover some compensation or hospitalization expenses.
Choosing Between 14 and 26 Month Maid Insurance Plans
When requesting maid insurance Singapore, most insurance companies have 14-month or 26-month policies. This is primarily because domestic helper insurance is attached to the work permit, which is usually valid for two years.
If you don’t want to renew the work permit and maid insurance simultaneously, it is best to get the 26-month policy.
Besides the convenience, a 26-month maid insurance plan is cheaper than 14-month plans, especially in the long term. The benefits vary, depending on the insurance companies. If cost is a problem, you can still go for 14 months of cheap maid insurance, but it is best to read the policy.
Some of the benefits offered in the 26-month maid insurance are not available in the 14-month coverage. For example, some insurers pay a daily allowance for an alternative helper in situations when the maid is hospitalized or injured and unable to perform her duties.
The policy may also provide wage compensation for the period when the maid fails to work for reasons beyond her control.
Some of the additional benefits include wage compensation, theft, and third-party liability.
What Foreign Domestic Worker Maid Insurance Policies Cover
Although every insurer determines what each insurance policy covers. However, the best domestic helper insurance covers any uncertainties and expenses in the future. Some of the expenses covered under maid insurance include;
- Hospitalization fees.
- Surgical fees.
- Pre-hospitalization consultation fees.
- Follow-up treatments.
- Diagnostic services.
- Wage compensation.
- Repatriation expenses.
- Third-party liability
Exclusions in Maid Insurance
Unfortunately, maid insurance may not cover pre-existing conditions, such as diabetes. If the maid also suffered injuries before getting coverage, the costs of treating the injuries may not be covered under the insurance.
Insurers may also exclude coverage of;
- Drug addiction.
- Alcohol addiction.
- Contraception.
- Psychiatric illnesses.
- Cosmetic surgery.
- Prosthetic devices.
- Pregnancy.
- Dental care.
- Nursing care.
- Out-patient specialist care.
Although MOM has set the basic coverage costs, employers are encouraged to pay more to protect them from making hefty payments for accidents not covered under maid insurance Singapore.
If you are concerned about insurance affordability, some insurance companies offer cheap maid insurance. However, besides looking at the plan, you should also look at the inclusions and exclusions in the policy.
The best domestic helper insurance is not necessarily the one offering lower rates. It may be the insurer offering more opportunities for coverage that will protect you and your domestic worker. It is best to analyze the risks and the possible costs, should you fail to take coverage against the risks.