News about injuries or even deaths of domestic helpers in accidents may capture your attention from time to time, but the point at issue is whether the insurance policies taken by employers do provide sufficient coverage for them.
In the Consumer Council study on 30 insurance plans offered by 15 insurance companies for domestic helpers, two major types of policies are found available in the market - the basic and the comprehensive - which provide different levels of protection for the employees.
The 8 basic plans are mainly catered for local domestic helpers, with 3 of them also applicable to foreign domestic helpers. With a premium ranging from HK$240 to HK$450 a year, the plans cover employees' compensation protection, medical expenses incurred for physical injuries inflicted at work, as well as public liability.
The 22 basic and comprehensive plans that are tailor-made for foreign domestic helpers mostly offer an extension of coverage on the employers' statutory liabilities as well as the terms and provisions set out in the standard employment contract.
With premiums ranging from HK$380 to HK$860 for one year and HK$688 to HK$1,420 for two years, coverage is extended to personal accident benefits, medical expenses like out-patient treatment and hospitalization, fidelity protection as well as repatriation expenses.
On personal accident benefits, 19 plans provide coverage up to a maximum of HK$20,000 to HK$200,000 per year for injuries or deaths of the foreign domestic helpers as a result of accident. However, most of these plans stipulate that the terms are only valid if the accident occurs when the worker is off duty or on leave from work. One of the plans provides coverage only for accidents occurred at the workplace.
In regard to medical expenses, most of the plans cover surgical and hospitalization expenses varying from HK$20,000 to HK$100,000 a year. 17 plans offer coverage for annual expenses on outpatient treatment ranging from HK$2,000 to HK$4,500, and with per-day expenses vary from HK$100 to HK$210. Emergency dental expenses are also covered in 17 plans ranging from HK$1,000 to HK$3,000 a year. Consumers should be aware that the excess per claim and caps on treatment fees are applied in some plans.
For fidelity protection, it covers the economic losses incurred as a result of fraud or thefts committed by the helpers, with annual coverage ranging from HK$3,000 to HK$10,000. Some plans also cover expenses on unapproved long distance calls or the change of door locks and gates as a result of "dishonest acts". Most of these plans require that the dishonest acts must be discovered within 15 days, 30 days or 3 months immediately after expiration of the policy or termination of employment contract, and must be reported to the police immediately or within 24 hours.
The Consumer Council received a total of 9 complaints related to insurance for overseas domestic helpers in 2009 and 2010, most of them are related to disputes involving compensation claims and premium.
Consumers are advised to take heed of the following:
- Before taking out insurance plans for domestic helpers, shop around and compare the coverage and exclusions.
- Most policies will not cover pre-existing sickness or disease prior to inception of the insurance, and some will not cover serious illnesses such as heart diseases and cancer.
- Some plans carry a waiting period of 10 to 15 days from the effective date of the policy for claims in connection with certain benefits.
- Look out for the exclusions attached to the policy, such as suicide, pregnancy, acquired Immune Deficiency Syndrome (AIDS) or AIDS related complex; coma or poisoning as a result of narcotics or drugs not prescribed by medical practitioners; mental disease or disorder.
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