4 things you need to know about Hong Kong Insurance

Insurance in Hong Kong is going to be much like insurance elsewhere in the world – you pay a premium and are financially protected from the consequences of a specific risk. But understanding some key concepts within the Hong Kong insurance industry can ensure that you are successful with any insurance policy you decide to purchase.

1. How you buy your insurance can impact your choices

Not all insurance companies are created equal.

In fact, your choice of how you purchase your Hong Kong insurance coverage can have fundamental and long-lasting impacts on your policy. For example, choosing to go direct to an insurance company can mean a simple purchase, but you miss out on a range of choice and alternative options that may actually suit you better. Similarly, choosing to speak with an Insurance Agent means that you will likely be limited in your coverage options due to the simple fact that insurance agents in Hong Kong are representatives of a specific insurance underwriter.

Hong Kong insurance brokers are legally obligated to represent your interests, not those of the insurance company, and can often provide customers with a wider range of options for their protection than those afforded by underwriters or their agents.

2. Insurance will normally last a full year

In most cases Hong Kong insurance policies will be active for 365 days at a time. There are some limited exceptions to this, like Travel Insurance (which can be purchased on a single trip basis), but for the most part any insurance plan you purchase will form a contract which lasts for a year.

At the end of that period, you may be given the option to renew your coverage. At this point you will pay a new premium and receive continuing coverage for another 365 days.

3. There are only two types of universally required insurance in Hong Kong

Under Hong Kong law the only two universally mandated forms of insurance are Third Party Motor Vehicle Insurance and Employees’ Compensation Insurance.

Any vehicle driving or being operated on public roads in Hong Kong must have third party insurance to coverage against their financial liability for any accident they may cause. Proof of insurance must be provided at the Transport Department in order to receive a vehicle registration certificate.

Any employer employing any person to perform any job in Hong Kong must hold Employees’ Compensation Insurance on that individual to cover against the employer’s liability towards the worker suffering an accident or injury in the routine course of their job. This is a legal requirement for all employers – even families employing a domestic helper in their home. If you pay someone to perform a job then you must purchase EC Insurance for that person under Hong Kong Law.

4. Health insurance is not a necessity

Hong Kong has an exceptional and world-class healthcare system. However, many people do not realize that this is actually a healthcare system that offers public services alongside private facilities. As such, purchasing health insurance is not a necessity as it may be in other parts of the world, like the USA. In Hong Kong it is possible to go to a public hospital or clinic and receive affordable, high-quality care. It is important to note that at many public healthcare facilities a triage system will be in operation, so it may take some time to be seen by a doctor or nurse. Additionally, public healthcare facilities are often not the most comfortable environments – often referred to as “spartan” by patients.

It is for this reason that some individuals and families choose to utilize the private healthcare system in the city. In contrast to the public offering, the city’s private healthcare facilities are expensive – in recent years Hong Kong has been found to be the second most expensive healthcare location in the world, after the USA. As such, choosing to access private healthcare services in Hong Kong will carry a heavy price tag, and people wishing to use these facilities will often consider Hong Kong and International Health Insurance to assist with the finances in the event of a serious medical situation.

Hong Kong Insurance Advice

CCW Global is an expert Hong Kong Insurance broker able to assist individuals, families, and groups with their insurance needs. From professional and financial products, including Employees’ Compensation, Professional Indemnity, and Cyber Risks coverage, through to personal lines like Domestic Helper insurance, Motor Vehicle Insurance, and Travel Insurance, our expert brokers will assist you in making an informed decision on the insurance solutions that work best for your needs.

For more information, or to request a free consultation, please Contact CCW Global Today.

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