Maid Insurance

This page aims to provide you with information you need on maid insurance. Catering more towards first time employers of Foreign Domestic Workers (FDW), who may not be familiar with regards to insurance for helpers. 

Do I need to get insurance for my maid?

Under the Ministry of Manpower (MOM) regulations, employers will need to buy an Insurance for their maids. One of the criteria before maids can arrive Singapore/ legally commence work for the employers is to have an active insurance to cover the period of their employment tenure. The insurance will have to cover both Medical and Personal Accident. Most Foreign Domestic Worker (FDW) insurance also comes along with Security Bond.


Insurance Coverage Amount 

Now that we have answered the question on whether it is mandatory to purchase an insurance for your helper, the next natural question will be “How much insurance coverage do I need to get for my helper?” 

It is stipulated that:
-For Medical Insurance, the coverage must be at least $15,000 per year for inpatient care and day surgery during the maid’s stay in Singapore.

-For Personal Accident Insurance, the sum assured must be at least $60,000 per year. It must cover sudden, unforeseen and unexpected incidents resulting in permanent disability or death. It must not contain extra exclusion clauses that are not in the Employment of Foreign Manpower Regulations Click here for more details.

With the purchase of Insurance, employers and maids can have a piece of mind knowing that partial costs will be taken care by the insurer should any accident causing injury happens at work.

Security Bond and Waiver of Indemnity

You have learnt from the Employer’s Orientation programme (EOP) that you will need to furnish a S$5000 security bond to the government before you can employ your FDW.

Most insurance companies providing maid insurance also include this in their insurance packages or can be available for a fee top up. 

What is the Security Bond for?
It acts as a form of accountability and a pledge to pay the government should your helper or yourself break the law or work permit conditions. 

In the event where there is any breach of work permit conditions or law, the Security Bond may be called. Should that happen, you are required to pay the amount.

Waiver of Indemnity
As the FDW employer, is there anything you can do to protect yourself? 

Yes – most insurance companies providing FDW insurance also provide an option to add on a waiver of indemnity. What that means is that it indemnifies you from paying the full $5000 should the security bond be called. However, there is often a need to pay an “excess” which can range from $250-$500 depending on which insurance company that you are getting your maid insurance from and when you got the waiver of indemnity (before or after the purchase of the main insurance);
To illustrate, consider this hypothetical scenario: 

  • There is a breach of WP conditions, and
  • The security bond is called, and
  • You have purchased the Waiver of Indemnity at the same time as the FDW insurance and your “Excess” is $250.00

What you actually pay out of pocket will be $250.00, and the insurance company will absorb the balance $4750.00.

The Waiver of Indemnity is available for a small amount (usually in the range of $50+ for most insurance companies). It optional, not compulsory. However, it is often encouraged for employers to buy for a peace of mind.

Selecting a FDW Insurance – Things to Look out for

In considering the coverage, here are some key areas to look out for:

  • Locality: Does it cover only within Singapore or is the coverage worldwide?
  • Amount of coverage – Medical & Hospitalisation 
  • Amount of coverage – Personal Accident
  • Fidelity Guarantee: covers financial losses and/or loss of goods from fraud or dishonesty by maid.

Apart from Medical & Hospitalisation and Personal Accident, most insurers also provide coverage for other areas such as repatriation, rehiring costs etc. – These are often not used and are likely relevant in scenarios where the helper has unfortunately passed away while in employment. 

You should go for a premium that you are comfortable with. Do take note that for most insurance, there is an option to purchase a 14-month or 26-month FDW insurance – the length of the coverage is tied to the validity of the work pass i.e. purchasing a 14-month FDW insurance will mean that the WP will be valid for about 1 year, while a 26-month FDW insurance will have the validity of the WP to be about 2 years. The premium is usually a one-time fee for most insurers.



Disclaimer: All information provided in this article is provided to the best of our knowledge and years of experience in the industry. GM Connection Pte Ltd and its staff disclaims any liability and shall not be held responsible in any way in connection with the use of the information provided.