Insurance Package for FDW's

Filipino maids, Indonesian maids, Indian maids and all, they all need protection against accidents and illness requiring hospitalisation.

With effect from 01 January, 2008, the Singapore government no longer subsidised hospital bills of foreign workers, including domestic workers.

Furthermore, whereas in the past the coverage was $5,000 for two years (which was a lot since the subsidy was up to 80% of the bill), now it is $5,000 per annum.

As a result, the cost of insurance has sky rocketed, like so many things in Singapore these days.

Insurance companies catering to this segment usually have more than one package and the price varies accordingly.

What is this Letter of Guarantee?

Immigration Department will acede to an employer's request to grant his intended foreign domestic worker a long term visit for the duration of the employment contract if (among other conditions) the employer promises to cancel her work permit and repatriate her to her country of origin at the end of the employment relationship. This promise is backed up by a deposit of $5,000 in cash or, in lieu of cash, a letter of guarantee by a bank or an insurance company to pay Immigration Department the amount pledged.

Security Bond Protector

Now the employer can take out an additional policy to protect against the loss of the security bond. For a low premium, the insurer will pay Immigration Department a major portion of $5,000 security deposit. (For the exact amount payable, please click here). Without this additional coverage, an employer risks have his security deposit forfeit if:
  • The work permit has been cancelled and the maid absconds and is not repatriated within 30 days;
  • The maid is pregnant and gives birth in Singapore;
  • A breach of any other condition set forth in the Security Bond, etc.

However, the Employer is liable for 100% of the bond (or $5,000) if it is forfeited because of the employer's own acts or omissions, e.g.:

  • Requiring or permitting the maid to work elsewhere such as in another house, a shop or an office;
  • Requiring or permitting the maid to engage in any activity other than that of a domestic worker, etc.
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