A maid insurance policy is short, but it still uses words most of us don't use every day. Terms like security bond, forfeiture and bond waiver have exact meanings. They decide what the insurer pays and what you, the employer, may still owe.
This guide explains the main terms in plain English, in the order you'll usually meet them: when buying, in the policy itself, and when making a claim. Most terms come with a short Singapore example.
The cover exists because the Ministry of Manpower (MOM) sets conditions for employing a foreign domestic worker. Knowing the words makes it easier to compare plans on the maid insurance comparison page.
1. Why the cover exists
Compulsory cover
Maid insurance is compulsory in Singapore. MOM requires employers to buy medical and personal accident cover, and a S$5,000 security bond, before the work permit is issued. A family in a Punggol HDB flat hiring their first helper can't get the permit until this cover is in place.
MOM minimum
The MOM minimum is the lowest level of medical and personal accident cover the ministry accepts. Every plan on the comparison page meets it. Some plans pay hospital and surgical bills above the minimum, so it's worth reading the limit.
Work permit
The work permit is MOM's approval for a helper to work for a named employer. Permits run for one or two years. The policy is tied to that permit, so a new permit or a renewal usually means a new policy.
2. Words you meet when buying
Policy period
The policy period is how long the cover lasts. Plans are usually sold for 14 or 26 months. The extra two months cover the time between applying and getting the permit. If you're renewing a one-year permit, you'd look at 14 months. For a new two-year permit, you'd look at 26.
Start date
The start date is the day cover begins. Cover should start before your helper starts work, and last as long as the work permit. The typical-price examples on this site assume a start date 30 days ahead, as in the 14-month renewal example.
No-claims assumption
Prices on the comparison page assume you haven't claimed on maid insurance in the last 3 years. The insurer checks this when you apply. If you've claimed recently, you may see a different price on the insurer's own site.
3. The security bond
Security bond
The security bond is a S$5,000 sum that MOM requires for each helper. It backs your promise to keep to the permit conditions. You don't hand over cash. The insurer provides the bond and sends the bond paperwork to MOM.
Forfeiture
Forfeiture means MOM keeps the bond because a permit condition was broken. One example is a helper going missing during the permit. When the bond is forfeited, the insurer pays MOM the S$5,000.
Bond waiver
A bond waiver changes what happens after the insurer pays a forfeited bond. Without a waiver, the insurer can ask you to repay that S$5,000. With a waiver, it usually can't. The new helper, 26 months, with waiver example shows a plan that includes one.
4. What the policy pays for
Hospital and surgical benefit
This part pays hospital and surgical bills, at or above the MOM minimum. Limits differ between plans. A higher limit means fewer bills for you if your helper has a long hospital stay. Say your helper slips on a wet kitchen floor and needs surgery. That's when the limit matters.
Personal accident cover
Personal accident cover usually pays a set sum when an accident causes serious harm. MOM requires S$60,000 of this cover. The policy wording lists exactly which injuries count, so it's worth reading.
Repatriation
Repatriation means returning the helper to her home country. The policy covers this if the helper passes away or must return home. The policy wording lists which costs are included.
5. What the policy leaves out
Pre-employment medical exam
A new helper has a medical exam before starting work. Conditions found at that exam aren't covered, even if treatment is needed later.
Exclusions
Exclusions are the things a policy doesn't pay for. Maid insurance excludes:
- Conditions found at the helper's pre-employment medical exam
- Pregnancy and childbirth
- Cosmetic and routine dental treatment
- Self-inflicted injury
A routine scale-and-polish at a neighbourhood dental clinic counts as routine dental treatment. You'd pay for it yourself.
6. Words you meet when making a claim
Claim
A claim is a request for the insurer to pay under the policy. You usually make it, with bills, reports and the policy details. The claims page explains how claims work after you buy.
Recovery
Recovery is when an insurer asks the policyholder to repay money it has paid out. In maid insurance, this applies to the security bond. Without a waiver, the insurer can ask you to repay the S$5,000 it paid to MOM. With a waiver, it usually can't.
In summary
Three terms matter most. The policy period should match the work permit, with cover starting before your helper begins work. The hospital and surgical limit differs between plans, and a higher limit leaves fewer bills for you. The bond waiver decides whether you may have to repay S$5,000 if MOM forfeits the bond. You can check these side by side on the maid insurance comparison page.