Apart from employee compensation insurance, is it mandatory for employers to purchase other types of insurance for their domestic helpers?

For employers hiring a foreign domestic helper for the first time, I’ve noticed many often forget or are unaware that they must purchase employee compensation insurance for their helper. Employee compensation insurance is required under the Employees’ Compensation Ordinance (Cap. 282 of the Laws of Hong Kong). It ensures that employers bear legal responsibility for their employees and that workers are financially protected in the event of work-related accidents. Non-compliance can result in a maximum fine of HKD 100,000 and imprisonment for up to two years. Since domestic helpers are employees engaged to work in the employer’s household, employers are legally required to purchase employee compensation insurance for them.

Employee compensation insurance is a relatively standardized form of general insurance with affordable premiums. Employers can easily purchase it online or through an employment agency. The main coverage of this insurance includes:

1. Medical expenses for work injuriesThe insurance covers medical expenses arising from work-related injuries or occupational diseases, including hospitalization, outpatient, and surgical costs. Employers are responsible for these payments to ensure domestic helpers receive timely and appropriate treatment.

2. Sick leave allowance for work injuriesDuring the recovery period, injured workers who need rest and treatment are entitled to sick leave allowance, generally equivalent to 80% of their normal wages, ensuring their income is not significantly reduced.

3. Permanent disability compensationIf a work injury results in permanent partial or total disability, the insurance provides a lump-sum payment based on the degree of disability, age, and wages at the time of injury to support the helper’s future living needs.

4. Death compensation and funeral expensesIn the unfortunate event of death due to a work injury or occupational disease, the insurance provides compensation to the deceased’s dependents and covers reasonable funeral expenses to ease the family’s financial burden.

5. Rehabilitation support and return-to-work assistanceThe policy and relevant legislation encourage rehabilitation support to help injured workers recover and return safely to work, promoting workplace reintegration.

   
   

In addition to employee compensation insurance, many employers also purchase additional medical insurance for their domestic helpers to cover unexpected medical expenses during their employment in Hong Kong. Major insurance companies offer comprehensive policies that combine employee compensation and medical coverage. Annual premiums typically range from about HKD 1,000 to HKD 2,000+, depending on the level of medical protection included.

Based on my experience, employers should consider plans that include coverage for serious illness and cancer. While most employers rely on public healthcare services for treatment, there are many cases where helpers require long-term medication or specialized therapy, which can become an extra financial burden for employers. To avoid such risks, comprehensive insurance plans have become a popular choice among employers.

It’s also worth mentioning that employers with a good claim-free record over the years often enjoy premium discounts. For details, you can contact your insurance broker or call our company for assistance.