Migrant Domestic Worker (MDW) or Maid Insurance and Security Bonds Explained

This is a comprehensive guide to Insurance and Bonds required when you hire a Migrant Domestic Worker. Do bookmark it for easy reference and for new updates.

If you are intending to hire a migrant domestic worker (MDW/Maid) (formerly referred as Foreign Domestic Worker/FDW) , you are required by the Ministry of Manpower (MOM) to purchase medical and personal accident insurance for her before she arrives in Singapore.

In addition, you are also required to buy a security bond for her. These requirements also applies for renewals.

In summary, you are required to purchase the following:

Security Bond
Medical Insurance
Personal Accident Insurance

The following will explain in more detail about the different types of insurance and bonds required so you can have a better understanding and make better decisions.

Security Bond

What is a security bond? Basically, it is a binding pledge to pay someone, in this case MOM, an amount up to the limit stated in the bond ($5,000 as stipulated by MOM) in the case that you break the law or conditions governing the employment of your FDW. In Singapore, the security bond is usually through done through an insurance. The insurer guarantees to pay the government when you break the rules and then the insurer recovers the amount paid from you. It should be noted that a separate bond is required for each FDW that you employ.

Reference: http://www.mom.gov.sg/passes-and-permits/work-permit-for-foreign-domestic-worker/eligibility-and-requirements/security-bond

Medical Insurance

In order to ensure that the FDW will have access to adequate medical care for serious medical conditions during her time when she is under your employment, MOM requires that employers must take our medical insurance for each FDW that they employ and the coverage must provide coverage of at least $60,000 per year for in patient care or day surgery in hospitals. This amount was enhanced from the previous amount of $15,000 for policies with start date effective on or after 1 July 2023.

As the employer, you are responsible for all her medical care and thus her medical expenses. There have been many cases where employers found out that the minimum coverage is inadequate only when their FDW meet with a serious medical condition.

Do note that even though the annual coverage has been increased to $60,000, there is the introduction of a co-payment of 25% by employers for claims above $15,000.

The 25% co-payment, although a vast improvement from the previous arrangement where the employer is liable for anything above $15,000, is still a financial risk that can be devastating to the employer. Fortunately, some insurers have started introducing 0% or no co-insurance options albeit at a higher premium. The difference in premium for the 0% plan as opposed to the 25% co-insurance plan is only about a $100, a sum most can easily afford to have better peace of mind.

Reference 1: http://www.mom.gov.sg/passes-and-permits/work-permit-for-foreign-domestic-worker/eligibility-and-requirements/insurance-requirements

Reference 2: http://www.mom.gov.sg/faq/work-permit-for-fdw/what-if-an-fdws-employer-does-not-meet-the-medical-insurance-requirement

Reference 3: http://www.mom.gov.sg/faq/work-permit-for-fdw/what-if-an-fdws-employer-does-not-meet-the-medical-insurance-requirement

Reference 4: http://www.tnp.sg/news/singapore/maids-stroke-employers-90k-crisis

Personal Accident Insurance

It is also MOM’s requirement that all FDW must be provided with personal accident insurance coverage of at least $60,000. This is to protect your helper and her family should she meet with an accident causing her to suffer permanent disabilities or death. The insurance must cover sudden, unforeseen and unexpected incidents resulting in permanent disability or death but there are certain exclusions that are permitted. These are:

any pre existing medical condition suffered by the insured foreign employee;
any psychiatric or nervous or mental disorder suffered by the insured foreign employee;
any sexually transmitted disease, AIDS (Acquired Immune Deficiency Syndrome) or ARC (AIDS Related Complex) or other communicable disease, suffered by the insured foreign employee;
any pregnancy, childbirth, miscarriage, abortion, sterilisation, menopause, or any complication arising from any of these conditions, suffered by the insured foreign employee;
the effect or influence of any alcohol or drug on the insured foreign employee (other than when administered according to a prescription of a registered medical practitioner);
any ionising radiation or contamination by radioactivity from the combustion of nuclear fuel or nuclear waste or similar activity, suffered by the insured foreign employee;
any hazardous sport engaged in by the insured foreign employee, including any winter sport (such as skiing or snowboarding), underwater activity (such as snorkelling or scuba diving), aerial activity (such as taking a helicopter tour or para gliding) or motor sport (such as motorcycle racing or motor car racing);
any unlawful act of, or wilful exposure to danger (other than in an attempt to save human life) by, the insured foreign employee;
any suicide, attempted suicide or any self inflicted injury by the insured foreign employee, or any attempt by the insured foreign employee to cause self inflicted injury;
any war, war like situation, civil war, mutiny, rebellion, revolution or act of terrorism; or
any foreseeable strike, riot or civil commotion.

The coverage was raised from 1 Oct 2017 from $40,000 to $60,00 to reflect the rising cost of living in the FDWs’ home countries.

Reference 1: http://www.mom.gov.sg/passes-and-permits/work-permit-for-foreign-domestic-worker/eligibility-and-requirements/insurance-requirements

Reference 2: https://sso.agc.gov.sg/SL/EFMA1990-S569-2012#Sc1-

Reference 3: http://www.mom.gov.sg/newsroom/press-releases/2017/0507-changes-to-pai-for-fdws

Reference 4: https://www.straitstimes.com/politics/maids-employers-cheer-boost-to-accident-coverage

Reimbursement of Indemnity

There is usually an optional insurance that you can take up when purchasing the maid insurance. This is known as the Reimbursement of Indemnity or better known as “runaway insurance” so called as it covers the event of the FDW’s unexplained disappearance causing MOM to forfeit the security bond. If the employer had taken up this option, then the employer’s liability is limited to the excess amount which is usually about $250 instead of upto $5,000. This optional insurance covers breaches of the other conditions stated in the security bond except those caused by the employer.

It is good to consider this optional insurance if the FDW is working for the first time in Singapore or if this is the first time the FDW is working for you.

Embassy Bonds

If you are hiring FDWs from specific countries, you may be required to purchase an additional bond. These bonds are pledged to the respective embassies and makes the employer liable should they breach the employment conditions stipulated by the embassy with regard to employing FDW from citizens of their country. Currently, embassy bonds are required for FDWs from Philippines and Indonesia.

Update: Since 7 Sep 2022, the Phillipines Embassy Bond is no longer required

Reference 1: https://www.channelnewsasia.com/singapore/filipino-domestic-helper-performance-bond-bankers-guarantee-performance-foreign-migrant-worker-maid-2925046

Reference 2: https://www.pna.gov.ph/articles/1183190

Reference 3: https://polosingapore.dole.gov.ph/news/abolition-of-bankers-guarantee-and-performance-bond-from-verification-accreditation-requirements/

Note: It seems like the requirement for Indonesian Embassy Bond has been suspended (https://www.mom.gov.sg/faq/indonesian-fdw-performance-bond/i-heard-that-the-indonesian-embassy-has-suspended-the-performance-bond-requirement)

Indonesia Embassy Bond: https://www.hungchau.sg/our-services/indonesian-embassy-singapore-require-6k-bond-indonesian-maids-fdw-1-feb-2018/

Purchasing Maid Insurance and Security Bond

If you have applied and have received approval from MOM to employ a helper, or if you are renewing the work permit of your existing helper, you may consider purchasing the insurance and security bond through us.

We provide a hassle free experience as the whole process can be completed without visiting our office and every step is done at your convenience. We can also help in the application and renewal with MOM.

Why purchase through us?

Meets Ministry of Manpower’s requirement for Security Bond, Personal Accident, and Hospitalization & Surgical Expenses
Same day transmission to Ministry of Manpower
Quick turnaround time
Attractive premium

For more information or if you have further queries, please contact us via the form below.

We are registered Trade Specific Agent (TSA) with the General Insurance Association (GIA) with GIA Number C003127 – You may verify using this link.

* Disclaimer – for detailed coverage provided and the terms and conditions, please refer to the policy wording provided by your insurer. All information is provided on an “as is” and “as available” basis and you agree that you use such information entirely at your own risk.