What is Foreign Domestic Helper Insurance?

With the development of Internet, there has been a trend in recent years of hiring foreign domestic helpers (FDH) directly by the employer rather than employment agency. Based on the Immigration Department's Standard Employment Contract and Terms of Employment for Helpers (“Standard Employment Contract”), employers have a legal responsibility for the medical expenses and certain legal liabilities of the FDH during the contract period. As a result, a variety of FDH insurance products have emerged in the market. We would like to share the basic knowledge of these products to help you have a better picture about FDH insurance.

Two main categories: Basic and Comprehensive Coverage Plans

Basic Plans typically provide protection upon the employer’s legal responsibility under the “Standard Employment Contract”, namely, Employees’ Compensation, Surgical and Hospitalization Expenses, repatriation costs, personal accident, and public liability.

For employers who have greater concern to provide better protection for their helpers, there are various extension of coverage provided by different insurance companies, such as Clinical/Medical Expenses, Emergency Dental Expenses, Loyalty Protection, Rehiring Expenses, Hospital Cash Allowance, Loan Repayment Protection, and more.

Average Annual Premiums

The annual premiums for Basic Coverage usually cost less than a thousand Hong Kong dollars. For Comprehensive Coverage, it may exceed a thousand Hong Kong dollars and usually a saving will be granted to employers who purchase 2 years’ plan at once.

Employees' Compensation Coverage

This generally includes coverage for occupational injuries, loss of work capacity, and death compensation. The legal liability per accident for the employer is subject to a maximum coverage of one hundred million Hong Kong dollars, which is the minimum requirement specified in the Employees' Compensation Ordinance. Most products in the market offer the same amount of coverage.

Surgical and Hospitalization Expenses, Emergency Dental Expenses

While hospital expenses for helper is somehow unpredictable, and may create financial burden to the Employer, hence it is common for Basic Coverage for such expenses.  However, in order not to charge excessive premium, the coverage usually provide limited protection (e.g. maximum HK$25,000 per year) and sometime including an “Excess”, typically from three to fifteen hundred Hong Kong dollars. 

Such Basic Coverage may be good enough for emergency accident with the support of HKSAR public medical facilities but may not be enough for other major illness less cardio problem or cancer.

Regarding Emergency Dental Expenses, the coverage amount varies from HK$1,500 to HK$3,000, and most plans only cover a portion of the expenses, such as 60% or 75%, requiring the employer to pay the difference.

Clinical/Medical Expenses Coverage

This is one of the most claimed items in FDH insurance products. The annual coverage amount for clinical/medical expenses ranges from HK$2,000 to HK$12,000. This includes modern medical clinical/medical expenses, typically ranging from HK$100 to HK$250, with limitations on the number of visits and daily limits. Some plans may also include coverage for Traditional Chinese Medical or physical therapy, with relatively higher premiums.

Interruption of Service and Related Hospitalization Days

If an FDH needs to end/terminate the contract due to illness or other reasons, some of the plan that cover interruption of service and rehiring cost protection will provide the employer with a cash allowance. If the FDH needs to be hospitalized for treatment due to accidents or illnesses, or if the FDH's service is interrupted due to death or severe injuries that require repatriation to the home country, the employer can receive an annual cash allowance ranging from HK$4,000 to HK$6,000, subject to requirements for consecutive hospitalization days, typically ranging from 2 to 5 days. If the hospitalization period does not meet the specified minimum days, the related compensation cannot be obtained.

Personal Accident Coverage

This is an additional benefit, and most plans stipulate that accidents must occur on the FDH's rest days rather than during working hours for the coverage to apply. Depending on the severity of the injury or death, the family or the FDH can receive compensation. Generally, the coverage for accidents is limited to those occurring in Hong Kong.

Loyalty Protection Coverage

In cases of theft, fraud, or other dishonest behavior by the FDH, if proven, the insurance company may compensate for the monetary loss. Not every plan includes this protection, and the maximum coverage amount ranges from HK$1,500 to HK$10,000. Some plans may also cover unauthorized long-distance telephone usage by the FDH. Most plans stipulate that the employer must report such dishonest behavior within 15 days or 30 days after the policy period expires, the employment contract terminates, or the FDH is dismissed, and the report must be made immediately or within 24 hours after discovery, with some plans having “Excess” as well.

Exclusions

Certain items or illnesses are not covered, such as pre-existing conditions, pregnancy, suicide, etc. Some policies may not include coverage for heart disease and cancer, it requires the employer to purchase additional coverage for these conditions.

Public Liability Coverage

No every insurance companies provide public liability or personal liability for FDH. If third-party injuries or property damage occur due to negligence by the FDH, for example, if a window cleaning accident results in injury, the employer is legally liable. However, the coverage does not include the employer or their family members as they are not treat as “Public”. The coverage amount ranges from HK$50,000 to HK$200,000 per year, with some plans request “Excess”.

Claim Submission Process

Most of it can do it online, where the employer needs to upload or email relevant documents to the insurance company, then the employers will receive a check or bank transfer. Some applications use mobile apps for fully automated processing. After employers fill out forms, upload related documents, and once approved, the app automatically instructs the bank transfer, making it faster and more convenient than online submission.

Additional Services

Each insurance company offers different additional services, such as policy reservation, loan repayment protection, and more, which can be chosen based on individual needs.

The above information covers the general scope of coverage for FDH insurance. You can choose based on price, services, and company reputation to ensure protection for both the FDH and your financial interests.

Related product:

California Insurance's latest foreign domestic helper insurance offers the highest coverage in Hong Kong with up to HK$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