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Higher Maid Insurance coverage. A necessity or a waste?

According to the Ministry of Manpower's (MOM) requirements, there are 2 types of insurance coverage and a security bond guarantee before a maid can start work here in Singapore.  

 

1) Personal Accident                  - $40,000 coverage

2) Hospital & Surgical Expense - $15,000 per year coverage 

3) Security Bond                        - $5,000

 

All these components are usually packaged together under different maid insurance plans offered by different Insurance Company. 


The basic plans cover the 3 required components above. For the security bond, a letter of guarantee is provided. However, it does not cover your cost should the bond of $5,000 be called upon by MOM for whatever breach in work permit conditions. To be insured on this, it is recommended that you purchase the Reimbursement of Indemnity paid to insurer. At a fee of just $53.50 (excess $250) that covers you for a 26 months period, it gives you one thing less to worry about throughout the course of employment. 

 

The above maid insurance package covers the basic requirement needed for a Foreign Domestic Worker working in Singapore. The question is whether this provides enough coverage to protect both the maid and employer? 


Well, a higher insurance coverage usually comes with a higher price tag. This can sometimes deter domestic employers from upgrading the maid insurance plan. However, do consider that these cost are spread over a 14 to 26 months period. If you break down the cost, the most expensive Maid Insurance Package usually offered to you would cost you less than $16 a month. This is pretty worthwhile as it would raised the hospitalisation & surgical coverage to $30,000 per year. 

 

In many cases, employers do not see the need for a more expensive plan because it is rare for medical bills to go beyond $15,000. Nonetheless, it can get rather painful if you are the exception. Just do a search on google on "maid hospitalisation in Singapore", you will find a number of recorded experiences of employers being faced with heavy medical charges. A better maid insurance coverage would have made their situation a lot easier to manage. If you are thinking of employing a maid, this is something that you might want to seriously consider as well.  

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