More transparency in maid insurance

Wednesday August 29, 2007

THE General Insurance Association of Singapore (GIA) has rolled out new requirements for employment agencies selling maid insurance to employers.
Such insurance, which is compulsory for anyone who wants to employ a maid, is meant to protect the maid’s welfare.

The new scheme – to boost transparency and professionalism in the insurance sales process – requires employment agencies distributing this insurance to be registered with the GIA, and have at least one staff member trained and qualified in selling the Foreign Domestic Worker (FDW) insurance.

GIA hopes that with these new rules in place, potential employers will know what type of coverage they are getting for their maids, based on the premium paid for the insurance policy.
From Nov 1, all GIA member companies will only accept FDW insurance from employment agencies that are registered as a “Trade Specific Agent” (TSA).
To be licensed as a TSA, an employment agency will need to meet certain criteria and service standards.

The TSA will need to sign an Agency Agreement with each of the insurers the agency is representing. It will also have to submit a Letter of Undertaking that the agency is only selling FDW insurance, and not other products.

The employment agency will also ensure that there is at least one staff member trained and certified to sell the insurance at its place of business.
The FDW insurance covers maids for personal accidents and injuries as well as hospitalisation expenses. – The Straits Times / Asia News Network