Employers are responsible for the upkeep of domestic workers
We refer to the letter by Chen Shengwen (Face up to the liability risks of employing maids, 25 Jan).
All employers of migrant workers, including employers of migrant domestic workers (MDWs) are required to bear the full costs of employing them, including the cost of their medical treatment. This is a more reasonable approach than to impose such costs on taxpayers or the migrant workers.
To help businesses and individuals fulfil their obligations as employers of migrant workers, it is mandatory for all employers of migrant workers, including MDWs to purchase medical insurance with an annual claim limit of at least $60,000. This annual claim limit is estimated to cover 99 per cent of in-patient bills.
Capping the liability of the employer, as the author suggests, will result in significantly higher insurance premiums for all employers. Employers who wish to be protected against larger unforeseen medical bills can purchase insurance plans with higher coverage that are readily available in the market.
Employers who face financial difficulties in paying for their MDW’s medical bills can approach medical social workers at public healthcare institutions for assistance.
Doris Kuek
Director, Foreign Manpower Policy
Workplace Policy and Strategy Division
Ministry of Manpower
Face up to the liability risks of employing maids, 25 Jan 2024, Zaobao Forum, p22
Hiring an MDW in Singapore might entail significant financial risks, as I recently came to realise. My sister's hired maid underwent treatment at a government hospital during last year's Christmas holiday, staying in the intensive care unit for two to three days before transferring to a general ward for another two days before being discharged. Shockingly, the hospital bill amounted to $39,000.
Upon seeing this expense, we were all taken aback, as we recalled purchasing insurance when hiring the MDW. We promptly contacted the insurance company and discovered the insurance policy details: the first $15,000 of any expenses would be covered by insurance, and the employer had to bear 25% of the remaining amount. Therefore, my sister paid about $6,000.
However, the critical issue was that the insurance only covers a maximum limit of SGD 80,000. In other words, the employer must bear 100% of any excess amount. Coincidentally, at that time, a friend of my sister had a MDW who fell while riding a bicycle on a day off, resulting in a coma and hospitalisation costs of $200,000. The hospital suggested that the employer seek assistance from crowdfunding platforms.
While Singapore's laws provide protection for MDWs, it may pose a dilemma for employers, as the employer's liability is unlimited. In Singapore, many MDW employers are working-class individuals, and insurance policies purchased by companies for their employees also have a maximum claims limit. Why, then, should employers of MDWs bear unlimited responsibility, unlike wealthy and powerful companies that bear limited liability for insurance premiums?
I suggest that MOM should mandate MDW employers to purchase insurance with a specified amount. In the event of a serious accident where high medical expenses are incurred, the excess beyond the insurance limit should no longer be the responsibility of the employer. In other words, similar to businesses, MDW employers should only bear limited liability for insurance.
Chen Shengwen