It is financially challenging when the sole breadwinner of a family has an accident and cannot work, especially when it comes to families that are not well-off.
To cover these families in case of a rainy day, the Central Singapore Community Development Council partnered Maybank Singapore and Etiqa Insurance to give them free personal accident insurance.
A total of 400 families living in the Central Singapore District will benefit from the Maybank-Etiqa Family Shield Programme, which was launched yesterday.
The policies will cover the families for two years - with a payout of up to $50,000, if the sole breadwinner dies or becomes permanently disabled through an accident. Claims can also be made for other injuries. Up to six eligible dependants are also covered for up to $2,500, in the event of death or permanent disability.
Ms Denise Phua, Mayor of Central Singapore District and a Jalan Besar GRC MP, said losing a breadwinner's income from accident-related injuries is a "challenging life moment" and the scheme aims to provide relief for rainy days.
The 400 families were referred by family service centres (FSCs) and voluntary welfare groups.
Ms Lee Yean Wun, principal social worker at Kampong Kapor FSC, said: "This programme fills an important gap as low-income families are often not employed in work that has insurance protection.
"They often face a double whammy when death or work-related accidents occur, as there is not only a loss of income, but an increase in expenses as well."
Maybank and Etiqa have pledged $500,000 in total and plan to extend the scheme to other parts of the island in the next three years to benefit a total of 3,000 families.
Madam Djoeina Tan, 48, a part-time baker who has three children aged 13 to 16, said: "With insurance, we have peace of mind. My husband works in the renovation line and he has suffered injuries to his back and hand previously.
"They were minor and he could work. But now, with insurance, we are covered if anything happens."