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Flexibility in changing person covered under Comprehensive Helper Insurance
With many Hong Kong couples both working, caring for the young and the aged in the family often falls on the shoulder of domestic helpers. As the pandemic drags on, employers not only have to deal with complicated hiring procedures, they also need to pay for accommodation, meals and testing during the helper’s quarantine. This has given rise to severe shortage of domestic helpers in Hong Kong.
Benefiting from the tight market, many domestic helpers have taken to switching employers for higher pay. To curtail this recent trend, the government has implemented a new rule requiring domestic helpers to leave Hong Kong within two weeks of the end of contract. Yet, what kind of protection can Comprehensive Helper Insurance offer in case a domestic helper leaves unexpectedly?
Employers required to purchase insurance for domestic helpers
According to the Labour Department's Employees' Compensation Ordinance, employers are obliged to take out Employees' Compensation Insurance for legal liabilities arising from injuries at work and to provide free medical care, including consultation, hospital stay and dental treatment. While taking out Employees' Compensation Insurance is sufficient for compliance with the law, it does not cover the cost of medical treatments, which remains the employer's responsibility. Filling the gap, Comprehensive Helper Insurance provides healthcare protection for domestic helpers, including treatment for sickness or accidental injury and clinical expenses for treatment by Chinese medical practitioner, physiotherapist and dentist. It also covers surgical and hospitalisation expenses, including room and board charges, and surgeon's and anaesthetist's fees. This can substantially relieve the employer's potential financial liabilities.
Flexibility in changing covered person under Comprehensive Helper Insurance
In the midst of the pandemic, when a domestic resigned within a few weeks of the start of employment, the agency fees and insurance premium paid by the employer would have been wasted. In light of this, many insurance companies allow for changing the name of the covered domestic helper with no charge while the policy is in force. If a new domestic helper was hired to replace one who cannot complete the term of the contract, the employer could apply to the insurance company to have the name of the covered domestic helper changed, thereby arranging protection for the new domestic helper.
In addition, if an employer could not yet replace a domestic helper who left prior to the end of an existing policy, the period of protection would be extended with no charge for typically up to three months. Employers would not have to worry about paying premium for naught during the transitional period.
There is, however, a 14-day waiting period for most Comprehensive Helper Insurance plans. Employers need to be aware that expenses for hospitalisation, surgery, medical and dental treatment will not be covered until 14 days after coverage has been switched to the new domestic helper. The domestic helper would not be covered if he or she falls ill during this waiting period.
If an employer decided not to hire a replacement after employment of an existing domestic helper had terminated, they could contact the insurance company to cancel the policy. After deducting the minimum premium applicable, the insurance company would provide a refund on a pro rata basis. Relevant details can be obtained from the specific insurance company.
Employers all hope to remain on good terms with domestic helpers and complete the contract. However, if either party had to terminate the contract ahead of time and the employer managed to find a new domestic helper, insurance matters should not be neglected. Fulfilling contractual responsibilities offers both sides the maximum protection.
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