Employers seeking to hire migrant domestic workers have raised concerns over employment agencies requiring them to purchase specific insurance packages as a condition of hiring. This practice has drawn criticism from employers who argue it limits their ability to select insurance plans that best suit their needs.

While acknowledging the compulsory nature of medical and personal accident insurance for domestic helpers, employers say that mandates from agencies to buy designated policies go beyond necessary regulation. They contend that responsibility for ensuring adequate coverage should rest with the employers themselves, as they ultimately bear the financial burden if a worker’s medical expenses exceed policy limits.

One employer, Ng Sout San, who encountered such stipulations during recent efforts to hire a helper, emphasized that employers should have the freedom to compare different insurance options. Ng suggested that employers be allowed to select policies based on coverage details, premiums, exclusions, and co-payment terms, rather than being confined to packages dictated by employment intermediaries.

Ng also called on the Ministry of Manpower to uphold employer autonomy by permitting them to purchase any insurance policy that satisfies the ministry’s requirements. She argued that agencies should not be allowed to condition the hiring process on the purchase of their specific insurance plans.

The issue highlights an ongoing tension between regulatory safeguards intended to protect domestic workers and the rights of employers to exercise choice in managing insurance arrangements. While the need for proper insurance coverage is undisputed, the practice of tying insurance purchase to agency services has prompted calls for clearer guidelines to ensure transparency and fairness in the hiring process.