When buying insurance for a maid, there is a supplementary feature called the Waiver of Counter Indemnity bond that can be added for an additional cost. This feature reduces the employer’s liability for a $5,000 bond to a specified amount, as long as the breach is not the employer’s fault. The Singaporean government requires employers of maids to submit a $5,000 bond as assurance that they will comply with laws regarding the maid’s. If the bond is activated, the insurer will pay the government on the employer’s behalf and then seek reimbursement from the employer.
This does not apply to violations of work pass conditions such as non-payment of salaries, abuse, inadequate nourishment and housing and assigning hazardous tasks.