Average Cost and Benefits of Maid Insurance 2023
Since maid insurance is a mandatory part of hiring a foreign domestic worker, it is important to know what a typical policy costs and provides. This is an important facet of choosing an insurance plan because it can help you figure out if you are getting the required protection and desired benefits for an optimal price. Below, we have broken down the average costs and benefits of maid insurance to help you assess if you're getting a good deal.
Table of Contents
- Average Maid Insurance Cost
- Average Maid Insurance Benefits
- Premium vs. Basic Maid Insurance Plans
- Other Considerations
Average Cost of Maid Insurance
Sampling 18 insurance companies and 50 different plans, we found that the average cost of maid insurance is S$326.83 for a 26-month plan and S$237.23 for a 14-month plan. Since maid insurance policies often have at least 2-3 tiers of coverage, you can expect their costs to range from S$292 for a basic 26-month plan to S$373 for a top-tier 26-month plan (if you include the waiver of counter-indemnity). Mid-tier plans cost close to the overall average at around S$330. Even though 14-month policies may seem cheaper, purchasing a 26-month policy can save you around 30% per year on your premiums on average.
The average cost of a FDW insurance plan without the waiver of counter-indemnity is S$276 for a 26-month plan or S$194 for a 14-month plan. Since most insurance policies charge around the same amount for the waiver add-on (usually $53.50, GST included), you can expect prices to rise by the same amount.
Average Cost of Maid Insurance for Filipino Foreign Domestic Workers
Hiring a Filipino maid involves extra requirements, which drives the average premiums up to S$405 for 26-month plans and S$306 for 14-month plans. This is due to the required S$7,000 bond payment to the Philippines embassy if you are hiring a Filipino maid without an accredited agency. However, this average price could decline to around S$391 for a 26-month plan or S$300 for a 14-month plan if you are hiring a maid through an accredited maid agency as the bond requirement declines to S$2,000. But, we've also found that some plans that only offer S$7,000 bond payment are actually cheaper than all S$2,000 bond plans.
Average Benefits of Maid Insurance
As required by the Ministry of Manpower, every maid insurance policy provides exactly S$60,000 in personal accident and disablement expense coverage and at least S$15,000 in hospitalization expenses. You'll find that insurance policies also cover S$10,000 worth of repatriation expenses (sending your maid home due to death or disablement). After that, most other insurance coverages differ across a wide spectrum of options.
On average, basic plans provide less options for coverage with smaller coverage amounts, with less than 45% basic plans offering mid and top-tier perks. For example, an average basic plan's coverage includes the following: $1,590 of special grant coverage, S$1,236 of personal accident coverage and S$15,000 of hospitalization coverage. Out of the dozens of basic plans we sampled, only two basic plans offer extra outpatient expense or fidelity coverage. On the other hand, an average top tier plan's coverage increases to S$2,545.50 for special grants, S$2,807 for personal accident coverage and S$23,307 for outpatient expenses. Liability coverage for top-tier plans can cover up to $75,000.
|Average Benefit Coverage (S$)||Basic Plan||Mid-Tier Plan||Top-Tier Plan||Mkt Avg|
|3rd Party Liability||8,643||14,231||20,889||14,783|
|Personal (Maid's Belongings)||283||413||720||436|
Premium Maid Insurance Plans vs. Basic Plans
Since the most expensive plans cost 20% more than basic plans, it is worth discussing under which circumstances buying a top-tier plan makes sense. Basic plans usually offer little more than the required coverage while higher tier plans include more coverage for a greater variety of needs. Due to their low price, basic plans are a good option for cost conscious people who don't need extra bells and whistles. They're also a good choice if you find that you are overpaying for your insurance by having a plan with options that you never utilize. In some cases, you can actually find basic plans that provide extra benefits which can make basic plans a good value.
On average, a top-tier plan offers 13% more medical coverage and 62% more non-medical coverage than a basic plan. If you have expensive belongings or want extra protection against lawsuits from 3rd parties or your maid, the extra coverage can more than outweigh the extra cost. A top-tier plan is also a great option if you have had a maid for a long time and would like to purchase extra protection for her. Many other cases could justify purchasing a high-tier maid insurance plan. For example, it might be worth investing in additional medical and accident coverage for maids working in high-rise buildings, as they have been known to periodically get into building-related accidents.
|Basic Plans||Top-Tier Plans|
|Maid's Belongings Coverage||S$283||S$720|
|3rd Party Liability||S$8,643||S$20,889|
Methodology and Considerations
To calculate the average cost and benefit of maid insurance policies in Singapore, we collected detailed data on 50 plans from 18 insurance companies in the country. For the average cost, we accounted for promotions and the add-on waiver of counter indemnity coverage. This was because we wanted the price to reflect the true cost of what an average consumer would end up paying. To calculate the average of benefits, we looked at each benefit's coverage amount and its scope per plan level. This calculation helped us compare what to expect from each type of plan and which benefits are most commonly covered.
While it can be difficult to choose an insurance plan out of dozens of options, comparing each plan to the market average can make doing so much easier. With this in mind, we've prepared a guide on the best maid insurance policies, which details our picks for some of the top maid insurance policies to suit a variety of needs.