Comprehensive vs basic domestic helper insurance in Hong Kong
It is quite a common thing in Hong Kong to hire a full-time domestic helper, or maid, who helps with almost all everyday things around the house. Domestic helpers help with cleaning the house, cooking, laundry, but also with taking care of children, and the elderly members of the family. With so many Hongkongers working long hours, the help of the maid is a great relief to their everyday matters. However, besides reaping the benefits of affordable help, employers of domestic helpers have few other responsibilities, including buying insurance for their help.
In this article by Kwiksure, a leading insurance broker in Hong Kong, we will explain the differences between the basic domestic helper insurance requirement, also called Employee Compensation (EC) coverage and the benefits of securing a comprehensive plan for the maid you employ.
What is Employee Compensation insurance and what does it cover?
Hong Kong's labor law requires all employers to purchase insurance to protect their employees against workplace injuries and accidents. This law also applies to all those who employ a domestic worker, making it compulsory to secure at least the minimum legal requirement for a maid via the Employee Compensation Insurance.
Employees Compensation (EC) Insurance is the most basic insurance, and it covers employees who suffer injury or develop an occupational disease during the course of their work. The maid insurance, or the most basic EC insurance policy, covers the employer’s liability for the domestic helper's injuries, including their medical bills, medication, sick pay, etc. If an employee makes a claim under the EC policy, the coverage will provide weekly payments to the said employee, which can be used to offset their loss of earnings, both present, and future, or pay for necessary medical expenses.
Comprehensive domestic helper insurance
While the cheaper, basic domestic helper insurance only covers the bare minimum, there are some benefits to offering more comprehensive coverage to your domestic helper. Besides the EC insurance, all employers of domestic workers are also required to provide their helper with free medical care under the terms of a standard employment contract, which is extensively enforced in Hong Kong.
With that being said, extending the helper’s insurance coverage for at least health insurance is a wise step for employers to protect themselves, and the helper, against the costs of healthcare treatments.
What other benefits can employers offer to their helpers? Usual additions to the EC coverage include:
- Health insurance
- Personal accident insurance
- Dental insurance
- Repatriation expenses
- Replacement expenses
- Loss of services allowance
- Fidelity insurance protection
- Loan protection insurance
The comprehensive maid insurance can help offset many potential issues that might fall to the employer; be it bearing the costs of helper’s repatriation in case of her not being able to work anymore, but those benefits can also be a life-changer to the maid herself, as very often, her whole family is depending on her earnings here in Hong Kong. While many employers choose to fulfill only the statutory coverage requirements, it might pay off to extend your maid’s coverage a little further, if not only for your own financial protection but also for hers.
Talk to Kwiksure about your insurance needs
Whether you decide to obtain only the basic Employees Compensation insurance for your domestic helper, or are looking to find out more about the benefits of the comprehensive maid insurance, it's best to consult an insurance broker, such as Kwiksure, to get unbiased advice, plan comparisons and free quotes from multiple Hong Kong insurance partners.
Contact us today for a free chat!