So, you need insurance in Hong Kong?
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Further Reading
If you’ve recently arrived in Hong Kong, and you plan to stay for a while, you may need to obtain insurance coverage. Many new residents are surprised to learn that insurance is often entirely optional in Hong Kong, with only two exceptions (that must be obtained in all instances where they are required).
So what insurance do you need in Hong Kong?
The Two Mandatory forms of Coverage
If you’re the owner/operator of a vehicle operating on public roads, or you’re employing anyone to perform any job, then you are required to hold insurance. So, the two mandatory forms of insurance coverage in Hong Kong are:
What do these entail?
Third Party Motor Vehicle Insurance
This is the minimum standard of vehicle insurance protection required by the Hong Kong government covering any vehicle being operated on public roads.
Under this type of insurance you (the driver) are covered against any legal liability you may have towards the damage of third party property, or the injury and death of any third party individual, for a motor vehicle accident for which you have been found at fault.
Car insurance coverage in Hong Kong can be extremely comprehensive, but under the law, as a driver you are only required to hold third party coverage. This in turn protects you for:
- HK$ 100,000,000 in coverage toward third party death or bodily injury
- HK$ 2,000,000 in coverage towards third party property damage
Remember, this is the bare minimum required under law. A third party motor vehicle insurance doesn’t cover you against Fire, or your vehicle being stolen. It only protects you against the financial consequences of accidents that cause damage to third parties.
If you want to expand your coverage, that is possible but car insurance policies in Hong Kong generally command a higher premium – so you will pay more.
Employees’ Compensation Insurance
Any individual or company in Hong Kong which employs any person to perform any job must hold Employees’ Compensation Insurance.
Also known as EC Insurance, or Workers Compensation Insurance, this type of coverage protects an employer from their financial liability towards workers experiencing an accident or injury in the routine course of their job.
This includes the employers of domestic helpers.
Domestic workers are a common part of Hong Kong life, and while businesses needing EC protection on their office staff makes sense, many new residents may overlook the Employee Compensation Insurance requirement for their domestic helpers. Though, personal employers do not need a full-blown commercial EC Insurance policy.
As such, Domestic Helper Insurance exists to satisfy the EC requirements for the employers of domestic helpers. This is a cut down version of the Employees’ Compensation protection that exists for businesses, and is specifically designed to meet the requirements of Hong Kong Labour law, and your obligations as the employer of a domestic helper.
Domestic Helper Insurance, also known as “Maid Insurance” can be as simple as only EC Protection, but it can also be expanded to include far more coverage. Similarly, to car insurance, opting to take out a domestic helper insurance policy with more benefits will normally incur a higher cost, but its your choice as to whether you want to expand the policy.
Optional Insurance in Hong Kong
Outside of Car insurance (if you own a car), and Employees’ Compensation (if you employ anybody), all other forms of insurance are completely voluntary – you may purchase them, or not, completely at your own discretion.
This can come as a shock, especially if you’re coming from somewhere like the USA. Products like Health Insurance are not vital for every day life. But, these extra coverages can come in handy. So here are some additional forms of Hong Kong insurance that may not be completely necessary, but can be nice to have if you ever have to use them.
Hong Kong and International Health Insurance
Hong Kong has a great public healthcare system, offering high-quality, low-cost treatment. But there are draw backs, including long waiting times and no-frills accommodation. Sitting alongside the public healthcare system is the private system, which is much more efficient and offers comfortable care environments, but comes with extremely high costs.
While not a daily necessity in Hong Kong, health insurance can be a nice product to hold especially if your policy covers you elsewhere around the world.
Hong Kong Home and Fire Insurance
There are many different types of home insurance available in Hong Kong.
Home Contents, or Renters Insurance, protects your valuables inside your home. Fire insurance covers the rebuilding costs of any homes you may own if they are destroyed by fire.
Not everyone will need Fire insurance in Hong Kong, as this is generally only held by property owners and not renters. However, Home Contents insurance comes in a wide variety of types with many different options and customizations available.
One benefit of Home Contents insurance is the availability of Worldwide All Risks protection for your belongings. This means that no matter what happens to your stuff, and no matter where in the world it may happen, your home contents insurance policy is probably going to be able to help with either finding it, restoring it, or getting a replacement.
Again, not a necessity in Hong Kong, but Home Contents Insurance can be of vital assistance in any situation where it is needed.
Hong Kong Life and Protection Insurance
What would you do if you were unable to work and earn an income? How would your family cope in the event of your sudden death?
As unpleasant as it is to think about, Hong Kong is an expensive city and life does continue after accidents and illness. It is important to be prepared, and to prepare your loved ones. Life insurance or protection insurance can accomplish this in myriad different ways.
From Personal Accident Insurance giving you a lump sum payment in the event that you experience a severe injury, Critical Illness insurance offering financial support if you are too sick to work, and Disability Income protection if you find yourself out of employment for a long period of time. Many of these can be obtained on a standalone basis, or as a rider on a Life Insurance Policy.
While not mandatory, Hong Kong Life and Protection Insurance can ensure that even in a work case scenario, you and your loved ones will be supported.
Free Hong Kong Insurance Advice
CCW Global is an independent insurance broker. As such, we are required under Hong Kong law to provide independent and unbiased advice, and always act in the best interests of our customers.
If you would like to learn more about the various insurance products in Hong Kong that may fit your personal or business needs, or if you would like to receive a free, no-risk, no-obligation consultation regarding your existing insurance coverage, please Contact Us Today.
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