A company when hires foreign employees, it is expected that the company provides the employee with medical insurance. This is one of the compulsory formalities that have to be fulfilled in Singapore. Many companies help you provide insurance to your employees. The foreign worker medical insurance is a must in Singapore only then can the work permit be issued.
The need for foreign worker medical insurance
It is very important for an employer to issue medical insurance for its foreign employees. If not done, they have to pay a hefty fine along with some serious repercussions and imprisonment for up to 1 year. These repercussions may include not being allowed to employ foreign workers henceforth. There is no scope of exemption if an employee does not buy and maintain medical insurance for a foreign worker.
The information update
To let the employment flow smoothly, certain information should always be kept updated and have to be submitted before a work permit is to be issued or renewed. They are –
- Insurer’s name
- Policy number of the insurance
- Commence date of the insurance policy
- The date on which the insurance policy expires.
Essential conditions for co-pay arrangement
Co-pay arrangement is also a way by which one can buy medical insurance for foreign workers. This method can be used if the following conditions are fulfilled.
- The co-pay amount has to be reasonable and must not exceed 10% of the salary of the employee.
- Co-payment duration must not exceed six months.
- The employee must give full consent to the employer regarding the co-payment and that it must be exclusively specified in the employment contract.
What does medical insurance for foreign workers cover?
- Medical consultation fees.
- Intensive care unit charges
- Supplies and services for hospital
- Hospital room supplies and services and more
Whether the policy includes Covid 19 or not?
The policy generally covers all types of issues and expenses related to health. So, it is obvious that it will also cover the expenses incurred due to Covid 19, provided the insurance policy does not mention any exclusion of transmittable or communicable disease and a pandemic.
People generally confuse between work injury compensation insurance and foreign worker medical insurance. The first one includes work-related injuries and is legally required for all manual labour, while the latter includes non – work-related injuries and is necessary for employees who hold work permits.