How Maid Insurance in Singapore Protects You and Your Domestic Helper
When hiring a domestic helper, ensuring you have maid insurance in Singapore is a mandatory requirement set by the Ministry of Manpower (MOM). This form of protection is designed to safeguard both you and your helper, covering expenses that may arise from illness, accidents, hospitalisation, or other unforeseen situations.
A compliant policy is also essential for securing or renewing a domestic helper work permit, which makes it a crucial step in the employment process. In this article, we outline what domestic helper insurance in Singapore includes, why it is compulsory, and the benefits of selecting the best maid insurance.
What Is Maid Insurance in Singapore
Maid insurance in Singapore (sometimes called domestic helper insurance in Singapore or foreign domestic worker (FDW) insurance in Singapore) is a legal requirement under the Ministry of Manpower (MOM). It comprises medical insurance and personal accident insurance, both of which must meet minimum standards before your helper can begin work.
- Medical insurance (MI) must cover inpatient care and day surgery, with an annual claim limit of at least S$60,000 (for policies effective from 1 July 2023).
- Personal accident insurance must provide a sum assured of at least S$60,000, covering accidental death or permanent disability.
- A security bond (typically S$5,000) is also required for non-Malaysian domestic helpers. Some insurance policies provide a “letter of guarantee” in lieu of a cash bond.
Additionally, insurance must commence before the helper arrives in Singapore or before her domestic helper work permit is issued.
Most insurance plans are offered in durations of 14 months or 26 months, rather than 12 or 24 months. The extra two months is a requirement to ensure coverage beyond the work permit expiry, should repatriation or processing be delayed.
Why Domestic Helper Insurance in Singapore Is Mandatory
Compliance with MOM Regulations
Insurance is not optional. MOM mandates that employers must purchase both medical and personal accident coverage — these are part of the official MOM maid insurance requirements in Singapore before the domestic helper starts work or upon renewing her permit.
Failing to comply may lead to penalties, permit revocation or bans from employing foreign domestic helpers.
Financial Protection
Without insurance, if your helper becomes ill or meets with an accident, you bear full financial responsibility for hospital bills, surgery, or disability compensation. The correct insurance plan mitigates these risks.
Employer Liability and Peace of Mind
As the employer, you are legally liable for your domestic helper. Insurance reduces this liability by covering many of the potential costs associated with injuries or medical events.
Key Benefits of the Best Maid Insurance Plans
When choosing the best maid insurance in Singapore, it is important to look beyond the minimum requirements set by MOM. Comprehensive policies offer greater security for both you and your helper. Below are the main benefits explained:
Hospitalisation and Surgical Expenses
All policies must include medical insurance for domestic helpers in Singapore, covering inpatient care and day surgery. The current MOM requirement sets the annual limit at S$60,000 per year (effective from 1 July 2023). Enhanced plans may offer higher limits and additional coverage for pre- and post-hospitalisation expenses, specialist consultations, and day surgery procedures. This ensures that employers are not left to pay large hospital bills out of pocket.
Personal Accident Protection
MOM also requires a minimum of S$60,000 in personal accident insurance, which pays out if the helper suffers accidental death or permanent disability. Some comprehensive plans offer higher payouts to give added financial support to the helper’s family. This is an essential safeguard for both parties, ensuring compensation is available when severe accidents occur.
Repatriation Coverage
In the event of death, permanent disability, or other emergencies requiring your helper to return home, repatriation coverage helps cover the cost of transport. Without this benefit, employers would bear the full cost of arranging flights and logistics. Many insurers include repatriation as a standard feature, reducing the financial burden on employers during already difficult circumstances.
Letter of Guarantee / Security Bond
For non-Malaysian helpers, employers are required to place a S$5,000 security bond with MOM. Most insurers provide a Letter of Guarantee (LOG) that serves as this bond, meaning you do not need to tie up cash. This simplifies compliance and prevents the inconvenience of managing a cash deposit with the authorities.
Waiver of Indemnity / Bond Waiver
If your helper absconds and the bond is forfeited, a waiver of indemnity protects you from paying the full S$5,000. This waiver applies provided you have met MOM’s employer obligations. It gives employers peace of mind that they will not face large penalties due to circumstances beyond their control.
Re-hiring and Termination Costs
Employment sometimes ends earlier than planned. Certain plans include coverage for re-hiring or termination costs, which can help offset expenses such as new work permit applications, additional insurance purchases, and related processing fees. This reduces the financial strain of starting the hiring process again.
Liability Coverage
Some comprehensive policies include third-party liability cover, which protects you if your helper accidentally causes injury to another person or damages property. While not required by MOM, this benefit shields you from potentially expensive legal claims.
Outpatient and Sub-limits
Beyond hospitalisation, some insurers provide optional coverage for outpatient treatments, dental procedures, communicable diseases, or even traditional Chinese medicine. These sub-limits offer flexibility and ensure helpers can access a broader range of care without employers bearing unexpected costs.
Points to note:
- Co-payment structures may apply: for example, above a threshold (e.g. S$15,000), employer may pay 25% of claim amounts.
- Some insurance plans reimburse hospitals directly without requiring you to pay upfront.
- The more comprehensive the plan, the higher the premium — but often the extra cost is modest relative to the protection gained.
How Maid Insurance Supports the Domestic Helper Work Permit
Acquiring a valid domestic helper work permit requires proof of valid insurance. MOM will not issue or renew a permit if insurance does not meet standards.
When you apply for or renew the work permit, insurers typically transmit policy details or a letter of guarantee to MOM.
Additionally:
- For transfer cases (helper moving between employers), insurance should align with transfer dates.
- For renewals, new policies must begin immediately after expiry of the prior permit.
- The extra two months of insurance ensures coverage even if there are delays or extensions in processing or repatriation.
In short, accurate insurance is a prerequisite for legal helper deployment in Singapore.
Why Choose Master Maid Agency for Maid Insurance in Singapore
When selecting a maid agency, the way they handle insurance is often a deciding factor. Here is what Master Maid Agency offers:
MOM Licensed Maid Agency in Singapore
Being MOM-licensed means Master Maid Agency only provides helpers who are legally authorised to work, with valid maid insurance in Singapore already in place. This ensures full compliance with MOM’s requirements and avoids delays in work permit approval.
Over 20 Years of Experience in Maid Insurance and Placement Services
With more than two decades in the industry, Master Maid has guided thousands of families through choosing the right domestic helper insurance in Singapore. Our experience allows us to recommend policies that not only meet MOM’s minimum standards but also provide practical protection for employers.
Lowest Transfer Rate in Singapore
Our strong track record of matching families with suitable helpers reduces the need for replacements. This lowers your exposure to repeated insurance costs and administrative hassle, since each transfer often requires new coverage.
Dedicated Personal Relationship Managers (PRMs)
Insurance paperwork and policy details can be complex. Each family works with a PRM who explains the terms clearly, ensures policies meet MOM’s rules, and makes sure all insurance documents are properly filed for the domestic helper work permit process.
Fully Digitalised Process for Insurance and Work Permit Applications
From policy selection to MOM submission, everything can be handled online. This makes securing insurance faster, prevents clerical errors, and guarantees your helper is insured before she starts work.
Hundreds of Helpers to Choose From — All Properly Insured
We pre-screen helpers to ensure they meet MOM’s criteria and can be insured without complications. This means you only see profiles of candidates who are ready for safe and legal employment in Singapore.
Secure the Right Maid Insurance and Helper with Master Maid Agency
Do not leave your helper’s welfare or your own liability to chance. Contact Master Maid Agency now and let us help you hire your domestic helper confidently — fully insured, fully compliant, fully supported.
