According to the Indonesian Embassy’s website, there are currently two approved insurers that provide the Performance Bond guarantee:
- AIG Asia Pacific Insurance Pte Ltd (AIG)
- Liberty Insurance Pte Ltd (Liberty)
The current terms of the Indonesian Embassy performance bond guarantee in the bond contracts of AIG and Liberty enable the embassy to demand a sum of up to $6,000 from the insurer, without requiring proof that any breach of the Embassy’s Standard Employment Contract for Domestic Helpers has occurred.
Under the terms of the Indonesian Embassy performance bond guarantee in the bond contracts of AIG and Liberty, once the sum of up to $6,000 is paid by the approved insurers to the Indonesian Embassy, employers will have to repay the sum to the insurers upon demand. If employers fail to do so, the insurer can take legal proceedings against the employer.
Under the bond contracts of AIG and Liberty, employers cannot appeal to or challenge the insurers for paying the sum of up to $6,000 to the Indonesian Embassy.
Therefore, employers purchasing the Indonesian Embassy performance bond guarantee must ensure that they have the means to repay a sum of up to $6,000 to the insurer.
If you are not comfortable with the terms of the Indonesian Embassy performance bond guarantee, you can reconsider your hiring decision and employ an FDW from other countries. Alternatively, you can consider if your needs can be met by companies providing part-time help, including those on MOM’s Household Services Scheme.
For more information on the Household Services Scheme, please refer to www.mom.gov.sg/hss