What is the insurance and the security bond? What is a waiver of counter-indemnity?
It is a legal requirement to have insurance to have a helper. The insurance is for your protection. It covers the costs if your helper needs inpatient care at hospital or surgery (including day surgery). It does not cover outpatient care such as GP visits.
We use NTUC Income as our insurance partner as it is the leader on this market and provides good customer service. The basic insurance covers for up to 15k of hospitalization expenses, which can be increased for up to 40k of coverage.
The $5000 security bond:
The insurance company provides a letter of guarantee to pay on your behalf to the Government up to $5K (=security bond) should you or your helper violate the law. The insurance company would then ask you to compensate them.
For example, the security bond would be partially or totally forfeited in the following situations:
- if she works illegally on Sundays and MOM can prove that you knew about it
- if you sexually/physically abuse her
- if you fail to send her home once her work permit is cancelled (she goes 'missing' and the police spends time looking for her)
BUT NOT if she is pregnant. In that case the work permit would be cut, but there is no impact on the security bond.
The waiver of counter indemnity:
An available option is to purchase a waiver of counter-indemnity ($53) that would protect you in case MOM wants to forfeit money from the $5,000 Security Bond should the helper run away.