To ensure all foreign domestic workers (FDWs) are adequately compensated should they become permanently disabled or pass away during their employment in Singapore, the Ministry of Manpower (MOM) will increase the minimum amount assured for FDWs’ personal accident insurance (PAI). The sum will be revised from the current $40,000 to $60,000.
Minister of State for Manpower Sam Tan made this announcement in his speech at the NTUC May Day Domestic Employees’ Celebration held at the Youth Park @ Somerset on 7 May 2017.
“Besides employers, the Government also has a role to play to ensure that FDWs are adequately protected and have peace of mind while they work in Singapore. We regularly review our policies, taking into consideration constructive feedback from stakeholders,” he said.
Since January this year, the Centre for Domestic Employees (CDE) has been making calls to increase the minimum sum for FDWs’ PAI.
All new changes to the PAI will take effect from 1 October this year.
Definition of Coverage
According to an MOM media release issued on the same day, the revised PAI will also cover all sudden and unforeseen incidents that result in the death or permanent disability of the FDW in order to ensure they receive the same protection.
MOM added that insurers will not be permitted to impose additional “conditions, exceptions or exclusions except those specified by the Controller for Work Passes such as pre-existing conditions or suicide.”
“Today, different insurers provide different coverage for PAI, with some insurers taking a narrower definition of accidents and imposing more exclusions. As a result, some FDWs receive compensation for certain accidents, while others may not, even though the circumstances are the same,” said MOM.
Coverage Duration and Representation
MOM added that the PAI coverage period must now be from the date the FDW first arrives in Singapore to the date she returns to her country or, in the case where she is changing employers, to the date her new work permit is issued.
FDWs or their legal representatives will also now be allowed to file claims directly with insurers. If an FDW or her next-of-kin is unable to do so, MOM will appoint a representative to act on their behalf.
Advocating for FDWs
Responding to the changes in a statement, CDE Chairman Yeo Guat Kwang said that the centre is happy that MOM has heeded their calls to increase the minimum sum of the insurance.
“Since the last PAI review in 2008, the starting salaries of FDWs have increased quite significantly from an average of $300 to 2012 to about $550 in 2016. This warrants a corresponding increase in PAI coverage due to the rising cost of living in source countries fuelled by inflation, and in the event of any unfortunate accidents, the family of FDWs will receive greater financial support with the larger insurance payout,” said Mr Yeo.
Mr Yeo also said that the centre welcomes the move to standardise the PAI coverage, duration and the enhancement to allow FDWs and legal representatives to file claims directly with insurers.
He is now urging the Government to consider increasing the $15,000 medical insurance coverage to help employers cope with medical costs should their FDWs come down with a serious illness.
May Day Celebrations
The May Day celebrations for domestic employees organised by the Labour Movement saw some 1,000 FDWs gather at the Youth Park @ Somerset, where they spent the day bonding and interacting through various activities and games. The event was organised to appreciate FDWs for their hard work and contributions.
“Domestic employees are part of our working people in Singapore too. Therefore, it is imperative for our Labour Movement to support them on workplace-related issues as well as to look after their needs. We appreciate their effort in taking care of our homes and family members while we are at work,” said NTUC Central Committee member Abdul Samad Abdul Wahab, who is also co-chair of the event organising committee.
During the celebrations, NTUC President Mary Liew and the NTUC Central Committee were also present to interact with FDWs and give out appreciation cards that were crafted by primary school children to 30 of them.
