Insurance Requirements

In July 2023, MOM is updating their insurance requirements. 

Here’s our summary of the changes that are happening.

Minimum Requirements

In July 2023, the new minimum insurance requirement will increase from $15,000 in hospitalisation and surgery expenses, to $60,000 minimum.

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Insurers are now allowed to introduce a co-pay of up to 25% (employers) and 75% (insurers) for claims above the first $15,000. Insurers are allowed to waive the co-pay and provide full coverage.

Do I need to upgrade my policy?

The new requirements are only for new transfers and new arrivals. If you have an existing policy that is not expired you do not have to upgrade at this time. However, if you wish to upgrade you may. Only those who are transferring, renewing, or arriving to Singapore are required to buy the new policies.

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What is a Co-Pay?

A co-pay is the amount you as the employer will be required to pay if a helper’s hospitalisation or surgery expenses exceed $15,000. Here are some examples of how much you would owe under the co-pay scheme:

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Example 1: Helper has a surgery that costs $40,000. The insurer will cover the first $15,000. The remaining $25,000 will be split between the insurer and the employer. The insurer will pay $18,750, and the employer will pay the remaining $6250.

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Example 2: Helper has a surgery that costs $5,000. The insurer will pay the entire amount.

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Example 3: Helper has a surgery that costs $80,000. The insurer pays the first $15,000. For the amount up to $60,000 ($45,000), the employer will pay 25% and the insurer will pay 75%. The employer will pay $11,250, and the insurer will pay $33,750. Then for the remaining amount over $60,000, the employer will pay this $20,000. So for the $80,000 total bill, the employer will pay $31,250 and the insurer will pay $48,750.

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