Employment & Office Insurance
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Q1. Why employment insurance is necessary?
According to Section 40 of the Employees’ Compensation Ordinance, all employers (including contractors and subcontractors) are required to take out insurance policies to cover their liabilities 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 parttime, permanent job or temporary employment.
An employer who fails to comply with the Ordinance to secure an insurance cover commits an offence and is liable on conviction to a maximum fine of HK$100,000 and imprisonment for two years.
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Q2. Apart from legal requirements, why do we need employment insurance?The society is paying more attention to employment welfare at the present. As a result, the employers are required to purchase employment insurance and group medical insurance for their employees before they bid for tender, especially in cooperation with non-profit organizations and government agencies, including the physical therapy industry and security industry.
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Q3. How to determine the premium of employment insurance?The premium of employment insurance is determined by a series of risk assessments, including:
- The underwriting risks of different industries/ 1. occupations
- Claims history of the employer concerned
- Occupational safety as well as risk prevention measures taken by the employer concerned
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Q4. What document is needed for employment insurance?
- Company information, including business registration certificate and/or certificate of incorporation
- Employees’ information (e.g. occupations, number of employees, actual earnings, usual work locations, full-time/ part-time, requirement to work or take business trips outside Hong Kong, etc.);
- Past claims records; and
- Recent MPF contribution records (eg. 3 months of records)
Group medical insurance is generally regarded as one of the determinative factors for the talented to choose which corporate to work in. Providing the employees with group medical insurance can also enhance the loyalty of the employees. Not only Inpatient medical expenses, outpatient expenses and dental expenses are covered, depending on the plan you choose.
Group medical insurance will provide protection and medical network service for eligible employees regardless of health condition. Under the protection of group medical insurance, you can approach the medical specialist at once with a low cost.
Key features of group medical insurance
- No health declaration needed when this is certain amount of employees in the company
- Protection for the family member of employees
- Low cost
- All-rounded coverage
- Medical card with convenience
Group medical insurance generally is applicable to companies with minimum 3 employees. The family members of the employees can also be benefited. For the companies with more than 10 employees, no health declaration is needed for the application of group medical insurance. The annual premium is between a few hundreds to a few thousands, depending on the age of employees, plan, extra protection etc…
Although the cost of group medical insurance is relatively low, it is valuable. Not only the inpatient medical expenses are covered, but also the outpatient benefits and dental benefits. With the medical card, you can finish the payment process within seconds when you use our medical network service, including traditional Chinese medicine services, specialist outpatient clinics, X-ray diagnosis etc…
Since the beneficiary is “the company” instead of “the employee”, the protection of group medical insurance will be lost once the employee leaves. As a result, it is always a smart choice to purchase a personal medical insurance to prevent losing protection.