Extensive protection for both employers and domestic helpers

Starting this month, public hospitals have introduced significant fee increases. General outpatient clinics, inpatient wards, and accident and emergency departments have all seen fees rise by 2 to 3 times. Non‑emergency radiography services – which were previously free of charge – are now billed according to tiered rates.

Ongoing healthcare inflation not only adds to the financial strain on households, it also directly impacts the daily lives of domestic helpers living with us. To prevent additional stress arising from unexpected medical costs, a comprehensive protection plan for domestic helpers – one that goes beyond the legally mandated requirements – has become a vital cornerstone of employment relationships.

According to Hong Kong law, employers must insure domestic helpers with what is commonly known as “labour insurance”, a type of employee compensation insurance, to fulfil their legal responsibility for any workplace injuries sustained by the domestic helpers. The law also stipulates that employers are responsible for the medical expenses of domestic helpers during their period of employment. However, employee compensation insurance only covers work-related accidents and does not address the various health risks domestic helpers may face in their daily lives.

Within the family unit, the well-being of a domestic helper is closely tied to the successful running of the household. Therefore, comprehensive domestic helper insurance should cover not only basic outpatient care, hospitalisation and surgical procedures, but also dental care, traditional Chinese medicine and physiotherapy, fully addressing medical needs arising from accidents or illnesses. For instance, if a domestic helper needs surgery and hospital treatment due to a traffic accident during their regular day off, their insurance can cover the associated medical expenses. In addition, if the domestic helper is unable to work due to an injury, the employer can receive compensation for service disruption, helping to alleviate the inconvenience of having a shortage of staff.

Moreover, some insurance companies offer flexible optional coverage for serious illnesses, such as heart disease and cancer treatment, further reducing the financial burden on employers when paying for the domestic helper’s medical expenses.

With the significant increase in public hospital outpatient charges and the ongoing trend of medical inflation, several insurance companies have introduced targeted solutions to provide additional and sufficient coverage for outpatient expenses, relieving the financial pressure on employers from rising medical costs.

Most domestic helper insurance plans usually offer flexible arrangements in recognition of the fact that employment relationships can change. For instance, the “Automatic Extension of Coverage” ensures that existing coverage does not immediately cease when a domestic helper leaves and a new one has not yet begun. Instead, it remains effective for a specified period – usually 1 to 3 months – providing seamless protection and reducing the impact of personnel changes.

In addition to full-time domestic helpers, many families hire part-time household assistants, or hourly helpers. Although these employment relationships are also governed by law, the employer’s insurance obligations are often overlooked. It is important to note that as long as there is an employment relationship, regardless of the number of hours worked, employers must insure hourly helpers with labour insurance. Even when hired through referrals or intermediary platforms, the employing household will still bear the corresponding insurance responsibilities, provided there is no employment relationship between the platform and the service personnel.

If an hourly helper accidentally causes injury or death to another person while working, the employer may legally bear “third-party liability”, which is not included under labour insurance. Meanwhile, standard domestic helper insurance plans typically feature substantial third-party liability coverage, ranging from HK$1 million to over HK$10 million, offering significant legal and financial protection for employers.

A smooth claims process is essential, particularly when a domestic helper needs outpatient treatment, as traditional claims procedures can often be time-consuming. Currently, most insurance companies operate convenient online claims systems that allow employers to upload medical receipts and relevant documents at any time via computer or mobile phone. Some companies even utilise automated systems for approvals, significantly reducing waiting times and ensuring timely access to coverage.

When selecting domestic helper insurance, employers are advised to carefully assess their family’s actual needs and compare the coverage, compensation limits and exclusions of different plans in detail. A well-rounded domestic helper insurance policy not only effectively addresses the risks associated with medical expenses and third-party liability, but also reflects care and respect for family members, supporting harmony and stability within the family.

This Chinese version of this article was published in the Hong Kong Economics Journal 

If you have any queries regarding Helper Insurance, please feel free to contact us or find out more about our insurance plans:

View product

Read more: 

5 key factors to consider when comparing domestic helper insurance services – MSIG’s competitive edge

Protecting domestic helpers when cancer strikes

Learn more about EASY Claims and file your claims online anytime, anywhere.

EASY Claims – A simpler and faster way to claim!