According to the Ministry of Manpower (MOM), there were 268,500 migrant domestic workers in Singapore as of December 2022. These helpers, primarily from neighboring countries such as Indonesia, Myanmar, India, and the Philippines, are required to have Maid Insurance throughout their stay in Singapore, regardless of nationality.
Cost and Coverage of Maid Insurance
Maid Insurance typically costs between SGD 400 and SGD 600, covering a policy period of 26 months. However, the benefits and coverage vary between insurance providers. Understanding what to look out for is crucial when selecting a plan.
Mandatory Requirements by MOM (Effective 1st July 2023)
When employing a helper, the following insurance components are compulsory:
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Medical Insurance
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Employers must purchase medical insurance with a minimum coverage of SGD 60,000 per year for hospitalization and surgical expenses.
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Personal Accident Insurance
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A policy with a minimum coverage of SGD 60,000 is required to compensate the maid or her family in case of death or permanent disability.
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Security Bond
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Employers of non-Malaysian maids must provide a SGD 5,000 security bond, serving as a financial guarantee to ensure compliance with MOM regulations.
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Repatriation Costs
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Insurance should cover repatriation expenses in case the helper becomes unfit to work or passes away.
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Third-Party Liability Coverage
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Some policies offer coverage for legal liabilities arising from the maid’s actions.
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Additional Benefits Provided by Most Insurers
Many Maid Insurance plans extend benefits beyond the mandatory requirements, offering extra coverage such as:
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Pre- and Post-Hospitalization Expenses (within 90 days of treatment)
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Compensation for Wages and Levy during hospitalization
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Reimbursement for Temporary Replacement Maid Expenses
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Outpatient Medical Expenses for minor accidents
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Claims for the Maid’s Personal Belongings
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Theft Protection
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Extended Third-Party Liability Coverage
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Additional Repatriation Costs
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Wage Compensation
Fidelity Guarantee & Security Bond Explained
Employers can choose to purchase a Fidelity Guarantee, which indemnifies them against theft by the maid. Additionally, employers are required to place a SGD 5,000 security bond with MOM. However, most employers opt for a guarantee bond issued by an insurance company instead of depositing cash.
It is a common misconception that the insurance company will pay the SGD 5,000 security bond if the maid absconds. In reality, the insurer acts as a guarantor—they will pay MOM first but will seek reimbursement from the employer. To mitigate this risk, employers can purchase a Waiver of Counter Indemnity Rider, reducing their liability to just SGD 250 instead of the full SGD 5,000.
Employer’s Liability Coverage
Maid Insurance also covers Third-Party Liability, protecting the employer if the maid causes accidental bodily injury or property damage. Additionally, employers can safeguard themselves against compensation claims made by the maid for work-related injuries or diseases, similar to Work Injury Compensation Insurance.
Optional Add-Ons
Insurance providers offer various optional add-ons to enhance coverage, including:
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Guarantee Bond
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Waiver of Counter Indemnity for Guarantee Bond
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Fidelity Guarantee
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Dread Disease Coverage for the Maid
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Employer’s Liability Protection
Get a Quote Today!
We work with several leading insurance companies. If you need assistance in selecting the right Maid Insurance plan, feel free to submit a form or click on the image below to receive a personalized quote.
Ensuring comprehensive protection for your domestic helper not only complies with legal requirements but also provides peace of mind for both employer and employee.
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