What is Foreign Worker Medical Insurance (FWMI)?
Foreign worker medical insurance is insurance coverage provided to foreign workers by their employers. It is designed to cover medical expenses for foreign workers in case they require medical treatment or hospitalization due to illness, injury, or accidents during their employment period in the host country.
The purpose of this insurance is to protect foreign workers from high medical costs that they may incur while working abroad, which could be significant without insurance coverage. It also helps ensure that foreign workers receive necessary medical care promptly, which can be crucial for their well-being and ability to continue working.
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Is Foreign Worker Medical Insurance mandatory?
Yes, it is mandatory if you are employing workers on Work Permit or S Pass. You would need to purchase and maintain medical coverage of at least $60,000 per year for each worker.
The insurance should cover inpatient care and day surgery, including hospital bills for conditions that may not be work-related. You will need to submit the insurance details online to MOM before the permit or pass can be issued.
What does Foreign Worker medical insurance cover?
There are many insurers offering Foreign Worker Medical Insurance in Singapore, each providing their own range of coverage and benefits. Ensure that you are getting optimal protection for your Foreign Workers by looking out for the following.
Features to look out for:
Pre-existing conditions
Overseas hospitalisation benefit
Emergency outpatient treatment for cancer & kidney dialysis
Outpatient treatment
Claimable limit
Repatriation of mortal remains
How much does Foreign Worker Medical Insurance cost?
Industry and Risk Factors:
The nature of the work and associated risks also influence insurance costs. High-risk industries such as construction or mining generally have higher insurance premiums.
Claims History:
Certain insurers require the past 3 years of historical claims for pricing.
Coverage Limits and Requirements:
The extent of coverage required by law or by the employer can affect costs. Basic coverage might be cheaper than comprehensive coverage with higher limits.
Number of Workers:
Group policies for multiple workers may be more cost-effective compared to individual policies.
How does the 25% Coinsurance Option Work under the Enhanced Medical Insurance for Foreign Employees wef 1st July 2023?
The increased annual claim limit of $60,000 with co-payment by employers for claim amounts above the first $15,000 will be applied to policies on or after 1 July 2023.
$60,000 Annual Limit; Claim Amount: $45,000
Up to $60,000
$15,000 + (75% x $30,000) = $37,500
25% x $30,000 = $7,500
$60,000 Annual Limit; Claim Amount: $100,000
Up to $60,000
$15,000 + (75% x $45,000) = $48,750
(25% x $45,000) + ($100,000 - $60,000) = $51,250
There are options for insurance plans that eliminates the 25% co-payment amount that employers are required to pay for claims exceeding $15,000, covering the full $60,000.
What other mandatory insurance do I need for my Foreign Worker?
Foreign worker security bond is a compulsory requirement for all non-Malaysian workers. For each non-Malaysian foreigner you hire, you must purchase a $5,000 Foreign Worker Bond.
Foreign workers engaging in non-manual work who earn less than $2,600/month and those doing manual work are required to have WIC insurance. This insurance applies to workers in both manual and non-manual roles.
Work Injury Compensation Act (WICA) versus Foreign worker Medical Insurance
While there are situations where both Work Injury Compensation (WIC) Insurance and Foreign Worker Medical Insurance can overlap, they are not substitutes for each other. Having one does not exempt your company from needing the other. Each caters to different needs. Work Injury Compensation Insurance will only cover work-related injuries or illnesses, while Foreign Worker Medical Insurance will cover personal medical costs.
Important Note: For claims that fall under the Work Injury Compensation Act, they must be claimed under the Work Injury Compensation Insurance (WICI) first. Foreign Worker Medical insurance can cover both, but always claim WIC first.
Frequently Asked Questions
About Foreign Worker Medical Insurance In Singapore
- No, non-Work Permit and S-Pass holders are not eligible to purchase Foreign Worker Medical Insurance (FWMI). Only employees holding a valid Work Permit or S-Pass issued by the Singapore Government qualify for FWMI coverage. This insurance is specifically designed to meet the Ministry of Manpower’s (MOM) requirements for the health and well-being of foreign workers under these employment categories.
- Yes, you can. While the MOM requires a minimum coverage of $60,000 for medical expenses, many insurers offer the option to purchase plans with higher coverage limits. These extended limits can provide additional protection and peace of mind in the event of costly medical treatments or prolonged hospitalisation, ensuring your workers receive adequate care without imposing significant financial strain on your business.
- If your migrant worker already has an individual insurance plan that meets MOM’s medical coverage requirements, there is no need to purchase an additional FWMI policy. However, it’s important to remember that the employer is responsible for paying the insurance premium, regardless of the type of plan. Ensure that the existing plan provides the required coverage so that your worker is fully protected.
- Yes, MOM does accept medical insurance policies bought overseas, provided the policy meets the following conditions:
- It must be valid for use in Singapore.
- It must fulfil the required minimum coverage stipulated by MOM.
- The insurance premium must be paid by the employer.
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