Insurance and Domestic Helpers in Hong Kong
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If you’re a new arrival to Hong Kong then one of the most jarring facts of life about the city is probably going to be the existence of domestic helpers. If you’re coming from a country in North America, or most countries in Europe, then the idea of having a live in domestic servant is probably going to be a little bit bizarre. But the simple truth is that domestic helpers are a very common sight in Hong Kong— with many households employing a maid or other form of domestic servant.
And it’s true, a domestic helper can significantly ease the burden of managing your everyday life— for many short-term residents being able to employ a domestic helper is one of the many perks of living in Hong Kong (along side things like great public transport and world class food). But if you have never had a domestic helper in your life, or your home country is not a destination for overseas contract workers, then knowing what to do if you decide to employ a helper can be challenging.
One area that is often overlooked is the issue of Employment Compensation Insurance.
Hong Kong Employees’ Compensation Insurance
Employees’ Compensation Insurance, also known as Workers Compensation Insurance or simply EC Insurance, protects an employer’s liability towards employees who suffer an accident or injury at work.
Under Hong Kong law, any individual or business that employs any person, to do any job, in any capacity, must hold employee’s compensation insurance on that worker. This is because an employer is responsible for creating a safe working environment. If an employee is injured in the routine course of their job duties, it is assumed that the employer (whether that be an individual or company) is financially responsible, or liable, for the worker’s injuries.
If an employer has to pay out that financial responsibility from their own funds then it is possible that a worker may not get full coverage for the injuries they received. By mandating the purchase of employees’ compensation insurance for every employer in Hong Kong SAR, the government ensures that, no matter what happens to workers while they are on the job, employees will always have the support they need in a worst-case scenario.
This protection also applies to domestic helpers.
EC Insurance for a Domestic Helper
Remember under Hong Kong law all the employers must have employee compensation insurance. This includes individuals who employ a domestic helper.
Families with a domestic helper at home must have EC insurance to protect against their liability, should the helper suffer an accident injury or even death during the course of their job.
In the event that a domestic helper does get injured or otherwise hurt in their occupation, (or if they develop an occupational illness like carpal tunnel syndrome) the employees compensation insurance policy would provide payments directly to them. In addition to the statutory Minimum Wage Ordinance, the purchase of employees’ compensation is mandatory for all employers of domestic helpers. Failure to take out an appropriate EC insurance policy, underwritten by an authorized insurer, can lead to a fine of up to HK$350,000 and/or three years in prison.
An employer must bear all of the cost for any EC Insurance they take out. It is illegal under Hong Kong law for an employer to pass the cost of employees’ compensation insurance on to their employee by making deductions from the worker’s salary. At any point during their employment, a domestic helper can present a written request to see their EC insurance coverage — and the employer is obliged to present those documents for inspection.
Additional Helper Insurance Considerations
The Hong Kong Immigration Department offers a standard Domestic Helper contract on their website. In this contract are most of the legal requirements for an employer with respect to their employment of a domestic helper in Hong Kong. However, it often comes as a surprise to the employers of domestic helpers that they’re actually responsible for more than simply EC insurance in terms of managing the risk associated with that relationship.
Employers of domestic helpers are responsible for their helpers should that individual fall ill, or suffer a personal injury during the period that they are employed.
Under the standard employment contract, an employer is accountable for offering free medical care to their domestic helper following an illness or personal injury. For example, this can include things like medical consultations, inpatient treatments at hospitals, emergency medical care. or really any health care that the helper may require. Although the helper is required to accept medical treatment offered by any medical practitioner registered in Hong Kong, it is the employer who is responsible for covering those costs.
Further to this, in a severe and absolutely worst-case situation where a domestic helper dies during their employment, it then is the employer who is responsible for the costs of repatriating their body to their home country.
These are just some of the extra clauses that often catch people by surprise, and because this is a contract additional terms can be included by either party during the negotiation as long as the legal minimums are satisfied.
How Domestic Helper Insurance can help you
Domestic Helper Insurance in Hong Kong will always start with the mandatory employees’ compensation insurance protection. But from there it’s largely an employer’s choice as to how expansive the coverage will be that they obtain for their domestic helper.
For starters, domestic helper, or maid insurance policies, in Hong Kong can run for two-year terms. This is in line with the normal contract length for an overseas contract worker, and allows you to efficiently manage your administration with regards to contract renewals, new visas, and making sure that you are adhering to local laws. From the length of time that the policy is active, employers then have the ability to choose additional coverage options for their helper.
Remember, an employer is responsible for offering their helper free medical care.
While Hong Kong does offer an exceptional low-cost healthcare system, should a helper in your employ fall sick or suffer an accident that requires medical treatment, you are likely going to be obligated to pay for that treatment. By adding health insurance protection to a maid insurance policy, an employer is able to directly provide their helper with those costs. No matter what those costs are - from outpatient protection, to surgical and hospital expenses, and even dental treatment coverage, the options for medical protection on domestic helper insurance plans can be extremely robust.
Additionally, because an employer is also responsible for the costs with repatriation of mortal remains in the event of their helper’s death during the employment, many maid insurance policies in Hong Kong will also provide coverage for those repatriation expenses. Further to this many helpers’ insurance policies can even include things like personal accident insurance, replacement helper expenses (should you have to find a new helper during the contract), fidelity insurance protection, and even loan protection insurance.
This type of policy can be extensively customized to give you a broad and comprehensive level of coverage against most of the risks associated with having a live in domestic worker in your house.
Insurance for your Hong Kong Domestic Helper
While domestic helper insurance starts off as a mandatory purchase because of the employees’ compensation insurance laws that exist in Hong Kong, the customization options available with this type of product are able to give you (and your family) extensive peace of mind that you are protected against most of the risks associated with domestic helper employment.
Even if your helper is over the age of 65 there may be options for suitable insurance protection.
Maid insurance can sometimes feel like an obligation, a purchase that you have to make simply because you have to make it. But with all the options available, this type of insurance policy can actually prove invaluable if it is ever needed.
CCW Global has extensive experience with offering Employees’ Compensation Insurance to both large companies with hundreds of employees, and single families employing domestic helpers. Our expert team of independent brokers is able to assist you in creating the perfect maid insurance solution for your house, and your specific requirements.