In this article, we are going to talk about how does maid insurance work in Singapore. Also, we are going to discuss the things covered in maid insurance and tips before taking a policy.
What are a maid insurance policy and its use?
Maid insurance policy is taken by the employer for the maid which he or she has employed. The maid can either be called from Singapore itself or any other country. The only thing is that maids are those people who will help you with your household chores. This means that when there is no one at home, she will start cleaning and also decorate the house.
Maid insurance is compulsory to take in Singapore due to the Ministry of Manpower (MOM). That is because these people want the maid is safe and are also covered for. It is mandatory, and without the proper documentation, you cannot appoint a maid to your house. If you appoint a local maid, then you don’t need to take a loan.
In our case, it is important as the maid is coming to work from a different country. These helpers are called Foreign Domestic Workers (FDW), who keep your house clean and safe. The insurance policy also has an expiry date on it, after which maid insurance renewal should take place.
In this process, the employer can again take the loan from the same company or some other company.
There are some things which a maid insurance policy should have, and these are. The policy should contain $60,000 per year for personal accident coverage. They should also have a 15,000 per month coverage which is taken for hospitalization. They should also take a security bond in the name of the maid to secure her.
What is a security bond, and how do you get your deposit back?
A security bond is a kind of bond which is taken from a company in the name of the maid. This will ensure that the maid is boosted and she knows that she has to work harder. This also acts as a confidence booster, and the maid will now work more efficiently.
A bond is like a credit that is given to a certain company which helps them to run. This needs to be done to make the maid feel a little more safe and secure. You can either get the bond money back when the term has ended or the maid contract. It is up to the employer to decide to whom the money goes.
The only thing is that the employer has to follow the rules of the bond to get the money back. If any of the rules are broken, then the bond and the interest money will be taken by the company. Security bonds are a very risky thing to have due to several complications. After you have carefully read the terms and conditions, you can sign and pay the bond amount.
The employer must ensure that the maid knows all the different working conditions. That too, they have to tell them in front of a witness that is the maid’s agent. The bond deposit can be recoverable only when the maid is unable to come to work. Either that she is pregnant or that she had to go home due to an emergency that occurred.
Under what circumstance can the bond deposit be forfeited?
Here is a list of different reasons for the forfeiture of the bond deposit.
- The foreign domestic helper’s salary is not paid to her on a timely basis.
- The employer has failed to provide medical coverage to the maid.
- The employer has failed to repatriate the helper back to her home when she has requested.
- If the helper suddenly goes missing, the employer can take only half of the deposit back.
- If other conditions are broken either by the worker or the employer.
What are the things covered in maid insurance?
Here is a list of things that are covered by almost every maid insurance policy in the market.
- Hospitalization expense
These are the expenses that occur when the maid is in hospital due to any kind of illness or disease.
They also cover the surgical expense, which should be to treat the illness. You can also take the HLAS early stage critical illness insurance cover for your maid. Earlier, people did not use to send their workers to go to the doctor for a checkup. They thought that such a big bill would be a loss for them.
- Outpatient treatment
This means that if the maid is injured and has gone to the hospital for treatment. Then this will take place only when he or she is not warded in one of the rooms. Then the company will make the payment of the bill of the hospital.
- Personal accident
A personal accident amount is necessary, and the minimum amount is $60,000 per year. If the helper is involved in an accident and either they are dead or injured, the money will be sent to their family. There are also some plans which offer a higher amount of coverage to their customers.
This is the expense that occurs when the maid wants to go back to their home due to an emergency. This is also taken when the maid cannot work anymore and is being sent back to their home.
- Security bond
If you are hiring a helper in any country other than Malaysia, then you have to take a $5000 bond. This will ensure that the maid is working properly, and in the end, this will act as a bonus for the maid.
- Wage compensation
This means that if a maid is not able to work and is in the hospital due to an illness. The employer can use this money to pay her family the fees which are decided for the maid.
- Third-party liability
This means that if anything is damaged or broken by the maid unintentionally. Then that expense is also covered in the insurance policy and can be redeemed when a loss occurs.