Understanding MDW Insurance and Security Bonds

Hiring a Migrant Domestic Worker (MDW) in Singapore involves several important responsibilities, one of which is ensuring proper insurance and security bonds are in place. At Heyhelpers.co, we aim to make this process as seamless and transparent as possible for both employers and domestic workers. Here’s a comprehensive guide to help you navigate these requirements.

MDW Insurance: A Necessity for Peace of Mind

MDW insurance is a mandatory requirement set by the Ministry of Manpower (MOM) in Singapore. This insurance protects both the employer and the worker, covering various aspects such as medical expenses and personal accidents.

Key Components of MDW Insurance:

1. Medical Insurance: Employers must purchase a medical insurance plan with a minimum coverage of SGD 60,000.00 per year for inpatient care and day surgery. This ensures that the MDW has access to necessary medical treatments without financial strain.
2. Personal Accident Insurance: This insurance provides a minimum sum assured of SGD 60,000, covering the MDW in case of accidents leading to permanent disability or death. It offers financial security to the worker and their family.

Security Bonds: Ensuring Compliance and Responsibility

A security bond is a binding pledge to pay the Singapore government if the employer or the MDW fails to comply with the conditions of the bond. It acts as a guarantee of responsible conduct by both parties.

Key Points About Security Bonds:

1. Bond Amount: Employers are required to deposit a security bond of SGD 5,000 for every MDW they employ. This bond ensures that employers fulfill their obligations, such as timely salary payment, provision of adequate rest, and proper accommodation.
2. Bond Conditions: The bond is forfeitable if any conditions, such as not repatriating the MDW after the employment period or failing to provide necessary medical care, are breached. However, the bond is typically not required for Malaysian MDWs.
3. The Security Bond must be transmitted to the Ministry of Manpower before a transfer or arrival of the worker into Singapore.
4. Letter of Guarantee: Instead of depositing SGD 5,000 directly to the Ministry of Manpower (MOM), employers can opt for a letter of guarantee provided by insurers. This letter serves as a guarantee of the employer's obligations without the need for an upfront cash pledge.

How HeyHelpers.co Can Help

Navigating the requirements of MDW insurance and security bonds can be complex, but HeyHelpers.co is here to simplify the process for you. Our platform offers:

• Convenient Packages: Tailored packages that combine insurance and security bond services, making compliance straightforward and hassle-free.
• Competitive pricing: We offer one of the most affordable insurance policies in Singapore.
• Next working day transmission.

By purchasing your insurance policy through us, you are supporting us to continue running heyhelpers.co to benefit employers and workers through a fair and ethical hiring platform.