7 Considerations for Choosing Foreign Domestic Helpers Insurance
With a wide variety of foreign domestic helper(FDH) insurance options available in the market, employers may wonder how to choose the right insurance for their needs. When selecting FDH insurance, employers should consider the following factors.
1. Coverage scope
Purchasing employees' compensation insurance is a basic legal obligation that all employers must fulfill in Hong Kong. Therefore, FDH insurance in the market will undoubtedly include this coverage, and the content is generally similar. If the insurance premium is an important factor to consider, you can choose to only purchase basic employees' compensation insurance.
2. Adequacy of coverage Amount
If the employer only purchases a basic insurance plan, when the FDH falls ill or suffers an accident requiring hospitalization, according to legal requirements, the employer is responsible for the medical expenses of the FDH. Basic plans have limited coverage, and the employer needs to bear the difference in medical expenses. Additionally, under medical certification, if the FDH is deemed unfit to continue working or death, the employer is responsible for the expenses of sending the domestic helper or their body back to their home country. Therefore, when understanding the coverage details, pay attention to whether the coverage amount for each item is sufficient and whether there are deductible amounts.
3. Overlapping coverage with Other Insurances
If the employer has already purchased other insurances, such as home insurance, it is important to check if there is overlapping coverage with the FDH insurance. Usually, home insurance already includes personal liability coverage, coverage for household items or property loss, etc. If the coverage amount is relatively high compared to the domestic helper insurance, it may be considered unnecessary to purchase the same coverage in the domestic helper insurance.
4. Need for multiple foreign domestic helper insurance policies
Many FDH insurance policies state that if the employer simultaneously purchases another insurance with the same coverage, the second insurance company may only be responsible for the amount not covered by the first insurance company, or some insurance companies do not accept double insurance. Therefore, it is necessary to carefully review the policy details, as buying more does not necessarily mean getting more compensation.
5. Discounts
Each insurance company offers discounts and incentives to attract employers to purchase insurance for their FDH. For example, first-time purchases, consecutive two-year purchases, no claims record, or early policy renewals. Some insurance companies offer discounts of up to 50% for first-time purchases or provide additional insurance services as a bonus for purchases made within a specified period. There are also insurance companies that allow policy reservations, so even if the employment details have not been confirmed, you can reserve the policy for up to 365 days and activate it by completing the necessary information online within the reservation period.
6. Can the policy be used for new domestic helpers after the existing one left?
If the employment contract is terminated due to poor performance or fraudulent behavior, or if the FDH chooses to resign but the insurance policy is still valid, most insurance companies allow the transfer of the existing policy to the newly hired FDH. However, the employer must notify the insurance company in advance to update the information of the new FDH.
7. Exclusions
There are numerous general exclusions to be aware of, including:
i) Existing illnesses or injuries. It is necessary to check the FDH 's health report to avoid omissions.
ii) Injuries, illnesses, or death occurring outside of Hong Kong. If you take the FDH on a trip abroad and they get injured, it is not covered by the insurance and additional travel insurance needs to be purchased.
iii) Non-emergency dental expenses such as oral check-ups and cleanings.
iv) Serious illnesses such as cancer and heart disease. Some policies may include coverage for these two diseases but it may affect the premium.
Related product:
California Insurance's latest foreign domestic helper insurance offers the highest coverage in Hong Kong with up to HKD 88,000 coverage for hospitalization and surgical expenses. It also provides “New Starter Benefit” that offers probationary protection and “Open Cover” policy reservations for up to 365 days. Learn more or apply now.
The information provided in this article is for general reference only and should not be considered as any form of advice. Our company assumes no responsibility for its use
