Domestic helper insurance: A win-win solution for employers and employees

There are over 350,000 foreign domestic helpers in Hong Kong, and recent figures show nearly 200 domestic helpers have been diagnosed with serious illnesses since 2020. This is a cause of alarm for employers. When a domestic helper falls seriously ill while on the job, she may be unable to perform her duties, placing both her and her employer in a challenging situation – with potential medical expenses reaching hundreds of thousands of dollars. How can employers safeguard the rights and responsibilities of both parties while easing the financial strain caused by unforeseen circumstances, thereby achieving a win-win?

In line with the existing legislation, all employers are required to take out “Employees Compensation (EC) Insurance”, commonly known as Labour Insurance, for their domestic helpers. This basic insurance mainly covers accidents and injuries that occur while the domestic helper is on duty, fulfilling the employer’s legal obligations. Moreover, the employer is responsible for all medical expenses incurred by the domestic helper if she suffers from an illness or injury during her employment, regardless of whether it is work-related.

It should be noted that Labour Insurance only covers the EC liability for injuries or death of the domestic helper while at work. If the domestic helper incurs medical expenses from an accidental injury during her time off, those costs won’t be covered by Labour Insurance, and the employer will need to bear the expense. Additionally, Labour Insurance does not extend to third-party liability; if the domestic helper unintentionally injures another person, the compensation liability will fall on the employer.

Given the limited coverage provided by Labour Insurance, insurance companies have introduced coverage specifically designed for both employers and employees. These products not only meet the statutory requirements of Labour Insurance but also offer a range of additional protection to help employers alleviate potential financial burdens, including third-party liability.

When it comes to medical protection, domestic helper insurance encompasses not only basic outpatient, inpatient and surgical care, but also includes services from anaesthetists, dentists, Chinese medicine practitioners and physiotherapists, providing domestic helpers with more comprehensive medical support. If a domestic helper is hospitalised due to a work-related injury or illness and can’t work, the employer can be compensated for service interruption, helping relieve the strain. Some insurance companies also offer optional supplementary coverage for major illnesses, such as heart disease and cancer treatment, to mitigate the financial stress of employers in paying for medical expenses. If the domestic helper is unable to continue working due to the illness and has to return to her home country, the insurance also covers the repatriation expenses and the cost of hiring a new domestic helper. If hiring an immediate replacement isn’t feasible, the policy’s coverage period can be extended automatically.

To address concerns regarding the integrity of domestic helpers, many domestic helper insurance policies available today also include “fidelity protection” and “medical protection for abuse of your family”. When the domestic helper has to be replaced due to misconduct, the employer can receive compensation for costs related to replacing and installing door locks or metal gate locks, unauthorised phone calls and trauma counselling fees.

In addition, insurance companies regularly update their scope of coverage to align with current social conditions and market needs, offering a variety of plans from which to choose. Some domestic helper insurance policies include the loss of personal effects or money of the domestic helper. If the domestic helper is a victim of theft or suffers and accident resulting in damage to or loss of personal effects, such as mobile phones, jewellery or cash, she will be reimbursed according to the terms and conditions of the policy, helping ease her financial hardship and emotional stress.

With rising medical costs, comprehensive protection for domestic helpers has turned from optional to indispensable. Employers should comply with legal obligations and navigate unexpected costs while providing their helpers with peace of mind. When selecting a domestic helper insurance plan, it’s crucial to compare the coverage details, exclusions and waiting periods of each product. Employers should also check if the limits of indemnity are adequate for their financial needs. Savvy employers will choose a plan that aligns with their helper’s age and health status, and will provide accurate health information during the application process to facilitate smooth handling of any claim.

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

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

View product

Read more:

Reduce your own risk by protecting your helper from danger

Comprehensive protection with helper insurance during the holidays

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

EASY Claims – A simpler and faster way to claim!