On Nov 1 last year, the General Insurance Association of Singapore implemented the Trade Specific Agent (TSA) framework for the selling and distribution of foreign domestic worker (FDW) insurance.

Prior to this TSA framework, the insurance costs of hiring an FDW were usually included in the employment agency fees as part of the entire maid employment package. Often employers did not know how much they had paid and hence, how much refund they were entitled to, in the event of cancellation.

The new framework facilitates greater transparency. For example, policy premiums must now be clearly shown on the policy documents and cancellation conditions must also be reflected.

For cancellation refunds, the industry practice differs from insurer to insurer. A common method used is this: 70 per cent refund of premium up to 30 days' time on risk and 30 per cent refund up to 180 days' time on risk.

Employers should insist on receiving a copy of the policy wording when they buy the insurance. If they have problems getting the refund from the employment agencies, they should contact the insurer directly.

We would further advise the employers to purchase FDW cover from TSA-registered employment agencies. At present, there are more than 240 employment agencies registered as TSAs. They are listed on the GIA website at www.gia.org.sg and the list is updated regularly. Employers are encouraged to access our website for this list.

In addition, GIA will be issuing to all registered employment agencies an official TSA certificate soon for prominent display at the point of sale.

Mark Lim
Executive Director
General Insurance Association of Singapore