Top 5 Reasons for Domestic Helper Insurance in Hong Kong

Almost every adult in Hong Kong works from morning to evening and lives a hectic lifestyle focused on work and earning. Unfortunately, the busy lifestyle does not make this easy, as both partners must work to provide their families with the best life. Living in Hong Kong sounds tough, doesn’t it? – This is why nearly all Hong Kong residents hire domestic helpers, nannies, housekeepers, or maids.

It is believed that Hong Kong would not be able to survive without these silent heroes, as they are the backbone of many Hong Kong homes.

The domestic helper may perform some or all of their duties while the employer is at work. These domestic helpers make life much easier and more manageable for a working Hong Kong resident. Their duties involve cleaning, cooking, caring for the children in the family, and shopping for their needs. Their jobs come with various serious work risks.

These risks are why the Hong Kong labour department has made it mandatory to have domestic helper insurance when hiring helpers. The article will explain why purchasing the best domestic helper insurance is essential to protect your helper and your family.

What is Domestic Helper Insurance?

There are more than 350,000 domestic helpers in Hong Kong, mainly from the Philippines and Indonesia. Most domestic helpers have moved to Hong Kong from their home country to earn money for their families (in their home country). However, performing all the duties expected of a domestic helper can have risks, including injuries, illness, etc.

Every domestic helper needs the mandatory insurance when employed in Hong Kong. Domestic helper insurance provides the helper with the necessary accidental and medical protection. In addition, it helps the employer meet the agreement to be responsible and caring.

This insurance benefits the domestic helper and the employer from unforeseen accidents or even fraud caused by the helper.

Reasons For High-Quality Domestic Helper Insurance

Employee Compensation – (Injuries At Work)

Domestic helpers may be heroes, but they are still humans who are vulnerable to injuries. These injuries could happen anytime while they are performing duties for their employer. For example, it could be from cutting themselves while cooking or falling while cleaning the home. These injuries can be severe and result in the need to rush to a hospital.

The employer must pay for their recovery and care. Not all injuries can be fixed with simple bandages. Serious injuries or illness may add up to a significant financial bill.

Employee compensation is part of the domestic helper insurance, which covers the domestic helper when they suffer an injury or illness while working and performing duties that the employer has instructed. The insurance will cover all medical bills that have resulted from an injury at work. It is the fundamental role of domestic helper insurance and is crucial for the domestic helper and the employer. However, it only covers working injuries and may not cover injuries they suffer on their days off.

Medical Protection – (Injuries and Sickness at Any time)

Domestic helpers must be safe wherever they are and whatever they do. Although we all know that some accidents and mistakes happen unexpectedly, Accidents could be anything from the domestic helper slipping and breaking a bone on her day off to something more life-threatening, like a disease or getting hit by a car. Even illness can result in the domestic helper being hospitalised.

High-quality domestic helper insurance will cover these risks and provide medical protection for the helper in case of a severe injury. In addition, the insurance will also cover hospitalisation expenses due to critical illness. This factor provides the helper medical protection, whether they are working or on their off day.

Another crucial part of high-quality medical insurance is that if the domestic helper is hospitalised for more than five days, the insurance company will provide a daily cash subsidy (depending on the provider).

Protection From Third-Party Liability

Like any person, domestic helpers are unpredictable, and their actions cannot always be controlled. However, the employer is ultimately liable for their actions and will have to pay the consequences ( depending on how severe the actions are). Third-party liability can include accidental injury or property damage caused by your helper.

The incident could occur if they accidentally break someone else’s property or push someone, injuring them. The person injured or the property owner may take legal action against the helper. As the employer, you will be liable for your helper’s legal costs in such cases.

Domestic helper insurance will assist during these unexpected incidents involving third parties. The insurance will pay for legal and settlement costs. These incidents may be unlikely, but it is always better to be safe with good domestic helper insurance, as accidents can happen anytime. Insurance will help the employer reduce liability risks and give peace of mind if a helper does cause unwanted trouble.

Expenses For Helper To Return To Her Country (Emergency)

Sometimes, a domestic helper must return to her home country for drastic health reasons. The employer must send and pay for the helpers’ travel home due to their health or termination of the contract. Depending on the time and related issues, sending a helper home can be expensive. In the worst case, the helper may pass away in Hong Kong, and the employer must send the body back to the helper’s home country and the family, which can cost more than HKD 10,000.

In these horrible scenarios, domestic helper insurance will help the employer pay for flight tickets to the helper’s home country and cover all costs. However, the helper’s reason for returning home must be an emergency or medical-related. Hopefully, no emergencies will occur, but an employer should always be prepared to help their helper.

Fidelity Protection

A domestic helper is like any employee, as there is a risk of them not being who they are. A company hires employees after 1- 3 interviews and then shares company secrets and work. Domestic helpers are the same; they are in charge of the house, children, and sometimes even bank cards. It is unlikely, but possible, that the helper may not be as honest as desired. An employer will only discover this when it is too late. Such dishonest acts mainly include stealing from the employer.

Domestic helper insurance provides fidelity protection from these risks and dishonest crimes. The insurance will cover whatever has been stolen and the cost of replacing the door lock. Some insurance will also provide re-hiring expenses when the employer fires the current domestic helper. Hence, it is essential to purchase high-coverage insurance to protect yourself and your family, as it is almost impossible to forecast how the domestic helper will act in the future.

Domestic Helper Insurance Benefits for Everyone

Helper Feels Protected And Cared For

High-quality domestic helper insurance is a valuable investment for both employers and helpers. It ensures that helpers feel cared for and appreciated, which can boost their motivation and ease during employment. Employers should communicate the insurance coverage to help foster a positive working relationship.

Family Protection

Most families are fortunate to find hardworking, kind, and trustworthy helpers. However, at first, helpers could be either a blessing or a curse to the family, as they are strangers on day one. It can go either way and is a risk one has to take in Hong Kong. If things get bad, the employer does not have to worry—the insurance will reimburse their financial loss and take action to ensure the family’s safety.

Affordable

The highest quality protection will still cost less than HKD 1,000 per year. Many factors make purchasing high-quality domestic helper insurance a good choice. Buying the best quality for the best outcome and protection is vital. It is an investment for a better and safer tomorrow.

Domestic helper insurance is the best way to protect your domestic helpers in Hong Kong.

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To learn more about domestic helper insurance and get the best coverage for you and your domestic helper, contact Red Asia Insurance.