Once you start running your own business and hiring people, you are required to have an Employees’ Compensation insurance policy to cover your legal liability against bodily injuries of your employees under the Employees’ Compensation Ordinance. But, how well do you know the risks and the coverage you oblige to provide for your employees?
As a start-up, you may think the scenario doesn’t apply very often and get loosened perhaps. However, based on the Employees’ Compensation Ordinance, the employer is required to pay compensation if the employee is injured or dead under the following scenarios:
(a) while travelling as a passenger to or from his place of work by a means of transport operated or arranged by his employer and other than as part of a public transport service;
(b) while travelling by a direct route between his residence and his place of work for the purpose of and in connection with his employment by driving or operating a means of transport arranged or provided by his employer;
(c) when typhoon signal No. 8 or above or a red /black rainstorm warning is in force, while travelling from his place of residence to his place of work by a direct route within a period of four hours before the time of commencement of his working hours for that day, or from his place of work to his place of residence within a period of four hours after the time of cessation of his working hours for that day; or
(d) while travelling, for the purpose of and in connection with his employment by any means of transport permitted by his employer, between Hong Kong and any place outside Hong Kong or between any other such places outside Hong Kong.
Now, you can imagine if your employee sustains injuries after slip and fall while leaving office and at the time the red rainstorm warning is hoisted, you, as his or her employer, are liable to pay against your legal liability under the Employees’ Compensation Ordinance. That’s why it is vital to advise your employees to stay in safe places as best practice.
Taking one of our claim cases as example. It was a sunny day and an employee was on the way to her workplace. She caught a bus to work and when getting off the bus, she accidentally fell and broke her knee cap. The employer was smart enough to extend his Employees’ Compensation Insurance policy to cover his employees while they were travelling to and from their place of residence and workplace. We settled the claim at HKD270,000 for this incident. Can you imagine the risk is even higher when the rainstorm signal is issued?” mentioned by KANAGALINGAM Kamini, Head of Claims, AXA Hong Kong & Macau.
Other than the potential large settlement sum, employees taking prolong sick days will bring your cost up. That’s why a comprehensive Employee’s Compensation insurance policy is essential for every employer.
In current insurance market, the features of an Employees’ Compensation insurance policy are relatively standard among insurers. What really makes a difference for a business is simplicity of purchase through an online platform and the responsiveness of the claims team in the event of a loss.
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The above content is reviewed by Jamie Chambers - Head of Commercial, Property & Casualty - of AXA Hong Kong and Macau
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