MOM Announces Changes in Personal Accident Insurance for Helpers

After a rise in the minimum salary for Filipino helpers in April 2017, the Ministry of Manpower (MOM) announced on 7 May 2017 changes to the Personal Accident Insurance (PAI) for foreign domestic workers effective from 1 October 2017.

Those changes aim at harmonizing practices in the insurance sector and creating a solid and common framework for insurance providers to guarantee a more efficient and comprehensive protection for foreign domestic workers and their families back home. Priority is given to ensuring a fair compensation to all helpers in the event of any incident resulting in death or permanent disability – excluding pre-existing conditions and suicide – during their employment period in Singapore.

Alterations include a SGD20,000 raise in the Minimum Assured –  that is the amount that beneficiaries are entitled to receive should any such incident occur –  to a flat SGD60,000. The raise in the Minimum Assured is likely to slightly increase the cost of premiums for employers. These new amendments are also expected to help reduce confusion by bringing in more clarity when it comes to defining the period of insurance cover – newly established to be from the date of arrival right through the helper’s last day in Singapore. However, should there be any change of employer, the insurance cover is valid up until the new work permit is issued. Under these clarified new rules, foreign domestic workers or their legal representatives – in lieu of employers currently – will be able to file claims with insurers where appropriate.

For more information, you can visit the Ministry of Manpower (MOM) website.