Before welcoming a domestic helper into your home, you will need to ensure that you have taken all possible measures to ensure she can perform her duties safely.
Taking out a maid insurance policy is one way to ensure that your helper is protected. If this is the first time you are hiring a domestic helper, here are six misconceptions about maid insurance you should not fall prey to.
Maid Insurance is optional
Medical and personal accident insurance is compulsory for all domestic helpers in Singapore.
You MUST make sure your maid insurance provides at least $60,000 worth of personal accident coverage and $15,000 of medical coverage per year.
Maid insurance policies in Singapore will ensure they satisfy, and in many cases, exceed these limits.
Maid Insurance pays for all your helper’s medical needs
While a maid insurance policy is designed to offer coverage for medical costs, that does not necessarily mean every single type of medical bill will be covered.
Most maid insurance policies will only offer medical coverage in the event of hospitalisation. So, if your maid visits a clinic to get medication for a cold, you are unlikely to be able to make a claim for the doctor’s fees.
HL Assurance’s maid insurance not only covers outpatient medical expenses due to injury but provides an extra benefit of up to 50% off your maid’s medical and even dental consultation at the approved panel of clinics islandwide.
The cheaper the Maid Insurance, the better
While it might be tempting to simply buy the cheapest maid insurance policy around, it is actually smarter to look at what a policy offers and purchase one that best meets your needs.
Cheaper maid insurance policies might not offer benefits like repatriation expenses should your helper have to be sent home, third party liability in case your helper causes injury or damage to someone else or their property, and coverage for the personal belongings of your helper in the event of fire or theft in your home.
All Maid Insurance Policies are the same
Like all insurance policies, there are some maid insurance policies that are more comprehensive, while the cheapest ones are usually bare-bones policies designed simply to satisfy the basic requirements put in place by the Ministry of Manpower (MOM).
However, as we have seen above, a good maid insurance policy actually offers a lot more protection than what is required by the MOM.
For instance, if your maid insurance has a wage compensation component, you can get compensated for your helper’s wages if she is hospitalised and unable to work. If you get a policy without wage compensation, you will have to bear the cost of your helper’s wages even if she is unable to work.
Maid Insurance is just there for appearances but you’ll never actually use it
Many people buy maid insurance just to satisfy MOM’s requirements, but do not think they will ever have to use it.
Actually, if you get a more comprehensive maid insurance policy, you will have more chances to enjoy its benefits. For instance, HL Assurance’s maid insurance policy also offers optional coverage for medical check-ups, which lowers the cost of your helper’s check-ups by up to 50% at the approved clinics.
In addition, if an insurance guarantee bond is offered, your maid insurance policy can also free you from having to pay upfront the $5,000 security bond (as well as the Philippine bond in the case of Filippino maids) when hiring a maid.
If you terminate your helper’s employment contract, the Maid Insurance policy becomes useless
Your maid insurance policy can still be useful when your maid’s employment is terminated due to death or permanent disablement if it offers coverage for termination or re-hiring expenses.
In such cases, you might be able to receive compensation for expenses incurred in terminating your helper’s employment as well as agency fees for hiring a replacement.
HL Assurance’s maid insurance enables your helper to do her job with peace of mind.