For many South African families, domestic workers play a major role in the home and family. If you have a domestic worker helping you keep your home in order, you likely place a lot of trust in them, welcoming them into your home and even into your family. It’s for this reason that Domestic Worker Insurance exists, to offer some protection to a valued member of your household.
Even though there are an estimated 1 million domestic workers in South Africa according to Stats SA, domestic workers are often in a vulnerable position without formalized working contracts or benefits in place. Domestic worker insurance helps private employers to do the right thing and offer their employees protection and a financial safety net should they become too ill to work or pass away unexpectedly.
What does Domestic Worker Insurance Cover?
Policies from different insurers are varied, but generally, Domestic Worker Insurance will provide cover for:
- Critical Illness
Should something unexpected happen to a domestic worker leaving them unable to work and earn an income, this type of cover will ensure that they have financial protection in place to help them and their families.
How does Domestic Worker Insurance work?
Every insurer will have their own way of structuring a policy, however the general way that Domestic Worker insurance works is similar. The employer would open a Domestic Worker Insurance policy and become the policy holder on the life of their domestic worker. The domestic worker would be the Life Assured. The employer (policy holder) then pays a monthly premium for the chosen policy. The domestic worker (Life Assured) will select a nominated beneficiary who will receive the benefit in the case of a claim on the policy.
Who is covered with a Domestic Worker Insurance policy?
Domestic Worker Insurance exists to protect your domestic worker and their dependents. The domestic worker for which the policy has been opened, will be the Life Assured and the policy will cover the individual domestic worker.
Who is the beneficiary of Domestic Worker Insurance?
Although the employee opens the Domestic Worker Insurance policy and is the official policy holder, the beneficiary of the policy is nominated by the domestic worker for whom the policy covers. This means that if you take out Domestic Worker insurance for your domestic worker, they will be able to select who the benefit should be paid to in the event of a claim. In most cases, the nominated beneficiary will be a family member of a domestic worker.
Do I need to take out a Domestic Worker Insurance policy for my domestic worker?
To be a responsible employer, you will likely want to open a Domestic Worker Insurance policy. Considering the role that domestic workers play for many South African families and the vulnerability they face, it could be argued, the right thing to do.
Opening a policy for your domestic worker not only offers them formalized protection that all employees deserve, it also shows recognition of your domestic worker’s value in your home. This simple gesture can go a long way in your employer-employee relationship.
With the help of technology and click-to-buy insurance products, Domestic Worker Insurance is quick, easy and affordable with low monthly premiums and in many cases requires no medical underwriting.