How Do We Review Maid Insurance?
When employing a Foreign Domestic Worker or Maid you have quite a few legal responsibilities. One of those is that you are required to bear the full cost of the medical care of your maid. To limit financial consequences and to comply with the other requirements set by the Ministry of Manpower many insurance companies have developed Maid Insurance policies. On our website we have a wide selection of them available to you, so immediately the question begs itself: which one to choose?
It is also up to you
Although not overly complicated in nature, Maid Policies, like any other, are different and that makes them quite difficult to compare. We have built a comprehensive rating model that will hopefully be able to help you in your selection. The nice thing about our methodology is that besides the “average importance” setting you can change/set what factor(s) are actually most important to you. To some, it is important the sum of medical costs are covered and to others, the benefits in case of a personal accident bear more weight.
What are major risks covered in a Maid Policy?
Before we go into the actual scores, we want to explain how we actually go about the rating in our base-line scoring model. Let’s first review the major risks that are covered.
Personal Accident Coverage
You are required to purchase personal accident insurance coverage for the maid, and the minimum sum insured as required by MOM is S$40,000. The amount is claimable should your maid suffers death or permanent disability due to accidents.
Medical Insurance Coverage
MOM requires all foreign domestic workers holding Work Permits to have a minimum medical insurance coverage of S$15,000 a year. Some policies go as high as $40,000 though. Medical expense coverage can help you pay for your maid’s bills if she requires medical treatment.
This is more a service than an insurance. The insurance company will issue a Letter of Guarantee for a S$5,000 security bond on your behalf to Ministry of Manpower, so that you don't have to put up a cash deposit. However, depending on the insurance package and options you purchase, you may still be liable for the $5,000 if you fail to repatriate the maid. An optional waiver of indemnity limits your $5,000 bond liability to a smaller amount, usually somewhere around $250, if the breach of the bond is not due to your negligence or fault. Since you pay an additional premium, we exclude this feature in our rating model, so as to keep the policies comparable.
This covers matters such as legal or third party liability resulting from your maid's accidental negligence, coverage for termination expenses when your maid is certified unfit for work by a medical practitioner either due to injury or illness or repatriation expenses which covers the expenses for repatriating your maid's body or ashes due to an accident or illness that results in death.
So how do you tell which has the widest range of features, and which offers the best value? Here's how we did it.
- How we choose what we review
- How we test
- Rewarding policies that stand out
- Premiums that are good value for money
- How we recommend
1. How we choose what we review
Our maid insurance review currently covers every policy we can sell to you. To that, we have added 1 or 2 more popular policies of insurers with a large market share in Singapore so that you have the full overview of what is available in the market.
2. How we test
We look at every aspect of a maid insurance policy to see which ones stand out from the pack. Policies are scored out of 100, with points allocated in the following areas:
Medical: 45 points
We think this is the meat of a policy. The most weight is given to hospital and surgical expenses. This figure we use is the maximum dollar amount your insurer will pay out in a year. In this section, we also score on other medical benefits such as recuperation benefits, out-patient expenses and ability to use TCM.
Personal Accident: 35 points
This section defines what your maid will get disabled in some form or way after she meets with an accident. Do note that if the cause of death or permanent disability is not due to accident (eg. illness) you cannot make a claim under this category. In our rating we have put extra weight on total disability (versus loss of fingers or other parts) since this will render the maid continuing her work very improbable and will have far-reaching financial consequences for her.
Other Benefits: 20 points
In this section we score all the other benefits. Some policies cover for 1 or more critical illnesses, infidelity (theft) by the maid, third party liability, cost of making alternative arrangements when your maid is hospitalised and certain costs related to death of your maid.
Finally, we may add or take out point for what we qualify as anomalies. These are benefits that are not common to other policies (positive) or ones that are absent (negative) where we would expect these to be part of the basic package.
3. Rewarding policies that stand out
We score policies on the areas where they differ from each other. Policies can differ in many ways, and no single policy could possibly hope to have everything, which means we don't expect any policy to even approach 100 points. To compensate we apply a mathematical calculation to make scores more comparable and understandable that limits the range of the scores.
4. Premiums that are good value for money
For the Coverage Score we don't take premiums into account when scoring policies. Here you either make up your own mind about whether or not a product is within your budget or not. We do however also compare the value for money score offered by each plan. We call that the value for Money Score. When you go into our portal you will see that every policy has a Value for Money score. That score shows you which policy provide the best value for money, but of course, this is budget agnostic. By setting a price range under the preference panel on the left side of the page you can however easily find the best value for money score within the budget that you set.
5. How we recommend
We don’t recommend. We just present our professional interpretation of the facts. The choice is yours. With the preferences panel, you can set your own preferences and priorities and based on that we present the policies for you which you can then rank in order of price, coverage score or value for money score.
Ready to buy?
Head on over to our Maid Insurance comparison pages and press the buy button of the policy you select.