| Compulsory
Insurance |
| |
| Q1. | Are
employers obliged to take out employees' compensation insurance policies for all
employees? |
| Q2. | Is
it necessary for an employer to take out an employees' compensation insurance
policy for his part-time local domestic helper? |
| Q3. | What
should an employer take note of when taking out an employees' compensation insurance
policy? |
| Q4. | Is
an employer required to notify his insurer when his employee sustains a work injury? |
| | |
|
| | |
Content |
| | |
| Q1. | Are
employers obliged to take out employees' compensation insurance policies for all
employees? |
| A1. |
Regardless of whether the employees are working full-time or part-time (including
part-time domestic helpers and summer job workers, etc.), an employer of such
employees is required, under section 40 of the Employees' Compensation Ordinance,
to have a valid insurance policy taken out to cover his liabilities both under
the Ordinance and at common law for injuries at work in respect of every employee.
An employer who fails to have
a valid insurance cover is liable to prosecution and, on conviction, a maximum
fine of HK$100,000 and imprisonment for two years. Moreover, under
the Employees' Compensation Assistance Ordinance, Chapter 365 of the Laws of Hong
Kong, an employer who fails to comply with the compulsory insurance requirement
is liable to pay a surcharge to the Employees Compensation Assistance Fund Board.
For any
information concerning the list of insurers underwriting employees' compensation
insurance, please click here to access to the relevant website of the Hong Kong
Federation of Insurers. For
information concerning the extended insurance coverage to the Shenzhen Bay Port
Hong Kong Port Area, please click here to access to the relevant website of the
Office of the Commissioner of Insurance. Back
to questions |
| | |
| Q2. | Is
it necessary for an employer to take out an employees' compensation insurance
policy for his part-time local domestic helper? |
| A2. | The
Employees' Compensation Ordinance stipulates that all employers are required to
take out insurance policies to cover their liability both under the Ordinance
and at common law for injuries at work in respect of all their employees, irrespective
of the length of employment contract or working hours, full-time or part-time,
permanent job or temporary employment. Hence, an employer must take out an employees'
compensation insurance policy for his part-time local domestic helper as required
by the law. Back to questions |
| | |
| Q3. | What
should an employer take note of when taking out an employees' compensation insurance
policy? |
| A3. | When
taking out an employees' compensation insurance policy, an employer should take
note of the following statutory minimum insurance cover : | No.
of employees | Amount of Insurance Cover per Event | | Not
more than 200 | not less than HK$100 million | | More than
200 | not less than HK$200 million |
IMPORTANT
NOTE The minimum amount of insurance cover specified
in the Ordinance is not the maximum liability that an employer is required to
bear under the Employees' Compensation Ordinance and at common law. An employer
should therefore carefully assess the possible risk at work to which his employees
may be exposed and whether he should take out an insurance policy for an amount
more than the minimum under the Ordinance. Employers should consult their insurers
for professional advice.
|
The following points
should also be borne in mind: - No deduction should be made from the
earnings of an employee for defraying the cost of taking out insurance policies;
-
Ensuring that all employees are covered by the insurance policy and that when
the number of employees increases, the employer should notify the insurer accordingly
as soon as possible;
- Giving a detailed declaration to the insurer on
the annual earnings and job duties of individual employees;
- Listing the
usual work locations of employees;
- Stating specifically those employees
who are required to work outside Hong Kong or take overseas business trips;
-
Stating specifically whether any work is sub-contracted to sub-contractor and
stating clearly whether the employees of the sub-contractor are covered by the
policy; and
- Bewaring of the expiry date of the insurance policy and taking
action to renew the insurance policy in advance to ensure that the insurance cover
is not interrupted and to avoid contravention of the Ordinance.
Back
to questions |
| Q4. | Is
an employer required to notify his insurer when his employee sustains a work injury? |
| A4. | -
An employer should notify the insurer as soon as possible, within the stipulated
period and in the specified format (in writing or by specified form) required
by the insurer, when his employee sustains a work injury;
- The employer
should also keep a record of the periodical payments (i.e. payments for sick leaves
for work injury) paid to the injured employee, the original copies of the Certificate
of Compensation Assessment (Form 5) and the Certificate of Assessment (Form 7)
issued by the Labour Department, medical certificates and receipts in respect
of medical expenses properly; and submit the relevant documents to the insurer
within the stipulated period and in the specified format required by the insurer
for indemnifying the amount of compensation already paid to the injured employee;
and
- On receiving any legal documents, including an order or a summons
issued by the court, the employer should notify his insurer the soonest possible
or seek legal advice.
Back
to questions |