This case study explains why high-quality domestic helper insurance is crucial to avoid significant financial bills when your helper falls sick or is injured. Nearly all Hong Kong residents have hired domestic helpers, nannies, housekeepers or maids. The domestic helper insurance provides the helper with accidental and medical protection and helps the employer meet the agreement to be a responsible and caring employer. In addition, this insurance helps protect the domestic helper and the employer from unforeseen costly accidents.
Background of Client
The client is an expat who lives in Hong Kong with her family and has hired a domestic helper to assist her in everyday tasks. The helper’s duties involve cleaning, cooking, taking care of the children, and shopping for their needs. Performing all the duties expected of a domestic helper can have risks, including injuries, illness, and more.
Additionally, according to the HK Labour Department, every employer must have domestic helper insurance in Hong Kong when hiring a helper. The insurance provides employee compensation and medical coverage when things go wrong during the job.
In this case, the helper was performing her regular duties of cleaning the house. Unfortunately, as she was mopping the floors, she slipped and fell on her ankle. She was immediately rushed to the hospital in an ambulance and examined.
The outcome was a broken ankle bone, and the doctor informed the helper to rest for three months. After three months and cast removal, the doctor examined the ankle and noticed she was now suffering from ankylosis of the ankle joint. Ankylosis is permanent stiffness of the joint due to the injury, meaning she will be able to work but not like before the injury.
The client is responsible for paying for all medical care, 80% salary during the rest period, and compensation costs due to disability. The medical reports were sent to the labour department, which analysed the ankylosis to be 15% disability and calculated the compensation costs the employer will pay. These costs can add up to a large amount and are hard to budget for any employer.
How Domestic Helper Insurance was a Solution?
Fortunately, the client had purchased high-quality domestic helper insurance from Red Asia Insurance. High-quality domestic helper insurance covers an extensive range of risks and unpredictable situations that concern a helper. Various risks are why employee compensation is part of the domestic helper insurance, which covers the domestic helper’s injury costs and salary.
Therefore, The insurance helped the client reimburse all the helper’s medical care, salary and legal compensation costs. Below are the costs that the insurance paid the client after the helper had fully recovered :
- Ambulance Cost: HKD 200
- X-rays: HKD 100
- Medical Treatment (Public Hospital): HKD 100
- 80 % Salary (3 Months) : HKD 12,000 ( Average 1 months’ salary: HKD 5000)
- Compensation Cost (15% Disability): HKD 67,500
Total Costs Paid: HKD 79,900
High-quality domestic helper insurance is a necessary purchase as it can help both parties. Employers need to take care of the helper as much as possible, but these injuries and accidents are unpredictable.
The insurance will cover an extensive range of risks such as critical illness, emergency travel to their home country, injuries and even sudden death of helper. Therefore the insurance provides helper protection and covers for most accidents that occur during employment.