Why Does Your Helper Need Insurance?

By Contributing Author, 25 May 2016 4014

Did you know that it is compulsory to purchase an insurance plan for your domestic helper?

As with most types of insurance, there are various plans available and the application process may be confusing, especially for first-time employers. Here’s why you need to insure your helper:

1. Cover your bases
 
Domestic helpers are susceptible to illnesses and accidents, just like everyone else. But many people may not realise that when a helper is hired, the employer is liable for the full cost of medical expenses if she falls ill or gets into an accident.

That is why it is important to have a comprehensive helper insurance plan with medical insurance coverage to insure against such scenarios. Income’s Domestic Helper Insurance, for instance, offers payout benefits of up to $3,000 for outpatient medical expenses due to injury, and up to $115,000^ a year for hospital and surgical expenses.

2. Wages compensation in the event your helper is unable to work

What’s more, some insurers also offer wage compensation if your helper is hospitalised or on hospitalisation leave and is unable to carry out her duties. Income’s Domestic Helper Insurance policy for example, will pay for your helper's wages up to $35 a day (subject to a maximum period of 30 days), including government levy on foreign domestic workers. This is useful in providing you with extra funds to engage other professional help if needed.

3. It protects YOU too! 

Domestic helper insurance isn’t just for your helper, it’s also to protect you – the employer! No matter how vigilant you may be, it’s impossible to keep close watch over your helper 24/7. Therefore, in the unfortunate event that she is legally responsible for accidentally injuring a person or causing accidental damage or loss to another’s property while on duty, your helper insurance protects you against any legal liabilities you might face as the employer.

Domestic helper insurance can also help to cover against possible breach of the security bond, which is a binding pledge to pay the government (up to $5,000) if you break the law or conditions governing the employment of a helper. In Singapore, you need a bond for any helper you employ, unless she is Malaysian. Income’s Domestic Helper Insurance allows you to obtain a Ministry of Manpower (MOM) security bond protector. With this, the $5,000 bond liability imposed by MOM is limited to only $250 if you did not cause the breach of the bond!
 
Most helper insurance plans in Singapore provide you ample financial coverage if the unfortunate happens. However, if you wish to enjoy unparalleled convenience, you can save yourself the hassle of doing the nitty-gritty paperwork needed to extend your helper's employment by getting an insurance company to do it for you. 

Income’s Domestic Helper Insurance offers you an optional value added service, with hassle-free renewal and delivery of your helper’s insurance and work permit. This saves you from having to fill out form after form and uploading the necessary documents on the Ministry of Manpower website. We’ll even deliver your helper’s approved insurance documents and renewed work permit right to your doorstep!
 
The whole point of hiring a helper is to relieve yourself of some work duties at home. So instead of loading yourself with more work – paperwork – why not have an insurance company do it for you? Just call 6788 1111 to find the best insurance plan for your domestic helper and be sure to choose one that comes with value-add beyond the basic domestic helper insurance coverage. 
 
^ This hospital and surgical expenses benefit limit is inclusive of the annual minimum coverage prescribed by MOM in the amount of $15,000.

    

Important Notes:
This article is meant purely for informational purposes and should not be relied upon as financial advice. The precise terms, conditions and exclusions of any Income products mentioned are specified in their respective policy contracts. For customised advice to suit your specific needs, consult an Income insurance advisor.

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