Only 55% of small and medium enterprises (SMEs) in Hong Kong are aware of the workplace coverage they are legally required to provide, according to research from QBE.
The SME survey of more than 400 businesses across Hong Kong showed the proportion of SME organisations which understood the types of employee compensation insurance (ECI) coverage they are required to provide had fallen from 67% in 2021.
However the insurer said it was difficult to say what had caused the reduction in awareness post-pandemic.
ECI policy in Hong Kong covers an employer’s liability to compensate an employee who sustains an injury or dies from an accident caused by employment, according to the Hong Kong Federation of Insurers.
Plans can provide wellness programmes and benefits that support employee wellbeing, and can also help businesses protect themselves and provide affected staff with medical care in the event of accidents or incidents.
QBE Hong Kong & Macau market lead, employees compensation and liability Ben Patrick told Health & Protection, (pictured) said: “It’s hard to pinpoint one exact reason that may have caused the reduction.
“But we believe that less awareness usually relates to information resources being shared.“
QBE did not poll respondents specifically on how they were obtaining information on ECI, but Patrick identified a few influencing factors.
First was that ECI information previously provided was not updated internally, while another was that ECI coverage or policies communicated by the respective government departments or insurance companies may have been inadvertently overlooked.
Patrick added: “The number of occasions whereby staff requiring ECI coverage is zero or close to zero – so while this is not necessarily a bad thing for the company, it contributes to lesser awareness about the types of ECI coverage required.”
Hong Kong employers are obliged to take out ECI policies for all employees.
Information required includes the number of employees and their earnings and contributions made, contract type, working hours, work location, and requirement to work or take business trips outside of Hong Kong.
Also required are past claims records, payroll records with evidence-based supporting documents, relevant tax returns, accounting records and any other documentary evidence to substantiate the declared earnings.