From 1 July 2025, Stage 2 of MOM's enhanced Foreign Worker Medical Insurance requirements took effect. Three specific things changed: the exclusion clauses your insurer can apply are now standardised, premiums must be priced by age band, and insurers are required to pay hospitals directly when a claim is admitted.
This applies to any FWMI policy with a start date, renewal, or extension from 1 July 2025 onwards. If you employ workers on Work Permits and your policy renewed after that date, it needs to meet Stage 2 requirements. If it has not renewed yet, Stage 1 still governs until it does.
What the three Stage 2 changes actually mean
Standardised exclusion clauses
Before Stage 2, insurers could apply varying exclusion clauses, meaning two employers in the same sector could have meaningfully different coverage without realising it.
MOM has now published a standardised list of allowable exclusions. Any exclusion not on that list cannot appear in your policy. If your renewed policy still contains non-approved exclusions, it is non-compliant regardless of whether the premium was paid and the certificate issued. Check the MOM standardised exclusions list and compare it against your current schedule.
Age-differentiated premiums
Premiums must now be priced across two age bands: workers aged 50 and below, and workers above 50. If your workforce skews older, your renewal premium will reflect that. This is not a cost you can recover from your workers. MOM's position has not changed since Stage 1: the full cost of FWMI is the employer's obligation and cannot be passed on.
Direct payment to hospitals
When a claim is admitted, your insurer must now pay the hospital directly. Previously, some employers paid upfront and claimed back. That arrangement is no longer the standard. The practical implication is that your insurer's processes for dealing with hospitals matter more now. Ask your insurer before a claim arises how they handle admissions, what documentation they need from you, and how quickly they engage the hospital. Finding out during an emergency is not the moment for that conversation.
Does this affect my existing policy?
Only if your policy has a start date, renewal, or extension from 1 July 2025 onwards. A policy issued before that date, which has not yet renewed, remains on Stage 1 terms until it next renews. Once it renews, Stage 2 applies in full.
The complication is that some employers assume a renewed policy is automatically compliant. It is not unless the insurer has explicitly updated it to meet Stage 2 requirements. Ask for written confirmation, not just a renewal certificate.
What to check before your next renewal
3 things before you process the renewal: confirm the exclusion clauses align with MOM's standardised list, confirm age banding has been applied based on your workers' actual ages, and confirm the direct payment to hospitals is included. Then update your insurance details on WP Online before you request the Work Permit renewal. MOM requires current, accurate insurance details to be submitted before a Work Permit can be issued or renewed. An expired or non-compliant policy at the point of renewal creates a problem that is easier to avoid than to fix.
If your FWMI has not been reviewed since Stage 1 took effect in July 2023, now is a useful moment to go through the full picture. TZY CO assists Singapore employers with Foreign Worker Medical Insurance placement and renewal across the construction, manufacturing, marine, process, and services sectors. We are glad to walk through what Stage 2 compliance looks like for your workforce.
This article provides general information only. It is not insurance advice. Policy availability, terms, conditions, and exclusions vary by insurer and product, and cover is subject to the full policy wording. Please contact TZY CO for advice on your specific situation.ta