What you NEED to know about Maid Insurance

If you’re living in Hong Kong then chances are high you employ a domestic helper. Whether this is in the form of a Maid, a Chauffeur, a Gardener, or even personal security and bodyguards, it is a fact that many families in Hong Kong employ domestic workers.

However, like all workers and employees in the city, Domestic Workers have certain rights and liberties under Hong Kong law. This can catch some employers off guard, especially if they are new arrivals to the city as some people erroneously operate under the misapprehension that employing a domestic worker starts and ends at setting up an employment contract.

This is not the case.

Domestic Workers must have Insurance Coverage

All employees in Hong Kong, including domestic employees and household staff, must have insurance coverage against their risk of receiving an accident or injury in the routine course of their employment. This rule actually exists for all workers in Hong Kong, no matter what job they do, how long they have been doing that job, or how much they get paid.

Any individual working in Hong Kong must be insured under an Employees’ Compensation Insurance policy. This type of insurance must be purchased by all employers and covers an employer’s liability at law for all workers, staff, and employees who suffer an accident on the job.

Domestic Helpers are not exempt from this requirement – domestic helpers must be covered by an employees’ compensation insurance policy, just the same as any other worker in the city. This insurance must cover the liability of the employer in respect to their domestic helper suffering an accident or injury while working.

Domestic Helper Insurance and Employment Contracts

As domestic helpers are employed for 2-year contracts, and insurance policies in Hong Kong normally last for single year terms, having to renew your domestic helper’s employee compensation coverage each year can be a headache. However, there are a number of Domestic Helper Insurance plans in Hong Kong that allow you to take out coverage for the period of your helper’s contract.

2-year maid insurance products last from the day you hire your domestic helper until the day the contract expires – you can normally renew this type of coverage every two years for as long as you employ your domestic helper, or until they reach normal retirement age of 65 years old. For helpers aged 65 years or older, many insurers may decline to offer 2 year coverage, and may place a significant loading on any premium you pay.

Extended Maid Insurance Benefits

Under Hong Kong law the only universally required form of business-related insurance is Employees’ Compensation Coverage. This means that as an employer of a domestic helper in Hong Kong, you have no obligation or requirement to purchase any other form of insurance protection.

While this may be true for insurance coverage, it is important to note that, under Hong Kong labour law and the regulations regarding the employment of domestic workers, you are responsible for covering the costs of medical treatment needed by your domestic helper. While you are not required to obtain health insurance for any maid or domestic worker you choose to employ, opting to do so may save you money and paperwork in the long term.

It is possible to obtain domestic helper insurance that simply satisfies your EC Insurance obligation and ensure that you have provided the minimum levels of legally required protection to your employee. It is also possible to obtain domestic helper insurance with greatly extended coverage, and a multitude of additional benefits – giving you and your domestic helper comprehensive assistance no matter what goes wrong.

Fully comprehensive domestic helper insurance products in Hong Kong can include coverage for:

• Domestic Helper Personal Accident Protection
• Domestic Helper Health Insurance
• Domestic Helper Repatriation Expenses
• Loss of Services Allowance
• Domestic Helper Loan Protection

The full benefit of some of these benefits may not be apparent on first inspection. “Loan Protection Insurance,” for example, does not sound like something an employer needs to be overly concerned about – after all, if a helper takes out a loan, then surely that is their issue (and responsibility)? In Hong Kong if a domestic helper takes out a loan then the individual they have taken a loan from may try to recover their money from the helper’s employer.

Consequently, loan protection insurance exists.

Domestic Helper Insurance in Hong Kong

There are many options for Domestic Helper Insurance protection in Hong Kong. Some of these are very low cost, but offer only limited levels of protection (to you, as an employer, and to your helper) and may only satisfy your obligation towards Employee Compensation insurance.

However, many helpers will have worked with their families for years, or possibly even decades, and many families will want to obtain higher levels of coverage for these important individuals in their lives. There is plenty of choice at both ends of the spectrum, no matter what is right for your family’s needs there is a domestic helper insurance policy perfect for you.

For more information, to receive a free quotation comparing domestic helper insurance options in Hong Kong, or to simply speak to a broker about the risks you’re facing in life, please Contact CCW Global today.

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