11

GOLDEN PROTECTION INSURANCE BROKERS LTD.GOLDEN PROTECTION INSURANCE BROKERS LTD.

(A member of Professional Insurance Brokers Association)(A member of Professional Insurance Brokers Association)

Room 606, Jupiter Tower, 9 Jupiter Street, North Point, H.K.Tel: 2524-8884 Fax: 2524-7841 Email: stephen@goldenprotection.com.hk

Stephen W.C. Li Stephen W.C. Li in Insurance since 1971in Insurance since 1971

Managing Director Managing Director

22

20062006 55 3311

* * EMPLOYEESEMPLOYEES COMPENSATION INSURANCECOMPENSATION INSURANCE

* * PUBLIC LIABILITY INSURANCEPUBLIC LIABILITY INSURANCE

33

44

EMPLOYEESEMPLOYEES COMPENSATION INSURANCECOMPENSATION INSURANCE

EmployeesEmployees Compensation Ordinance Chapter 282Compensation Ordinance Chapter 282

Objective of OrdinanceTo provide for payment of To provide for payment of compensation to compensation to employees who are injured in the course employees who are injured in the course of employment.of employment.

To ensure all employees with their FULL earningsTo ensure all employees with their FULL earnings

55

Meaning of EmployeeMeaning of Employee

1.1. Any PersonAny Person* * Enters into or works under a contract of Enters into or works under a contract of

service / apprenticeshipservice / apprenticeship** With an employer in any employmentWith an employer in any employment** Whether manual labour or clerical workWhether manual labour or clerical work** Whether contract is expressed or implied, Whether contract is expressed or implied,

is oral or in writingis oral or in writing

66

Exceptions of Definition Exceptions of Definition of Employeeof Employee

1.1. Outworker (e.g. plastic flower)Outworker (e.g. plastic flower)2.2. A member of employerA member of employers family s family

employed by such employer and who employed by such employer and who resides with the employer resides with the employer (a. not applied for limited company)(a. not applied for limited company)(b. as employee if EC insurance has (b. as employee if EC insurance has

effected for him)effected for him)

77

S.24 Liability in case ofS.24 Liability in case ofemployees employed by subemployees employed by sub--contractorcontractor

1.1. The main contractor shall be liable to The main contractor shall be liable to pay to any employee employed by thatpay to any employee employed by thatsubsub--contractor or subcontractor or sub--subsub--contractorcontractor

2. Sub2. Sub--contractor of any tiercontractor of any tier

Note that standard EC insurance policy Note that standard EC insurance policy excludes employees of subexcludes employees of sub--contractorcontractor

88

Sources of EmployerSources of Employers Liabilitys Liability1.1. Common LawCommon Law-- ItIts duty of employer to take reasonable s duty of employer to take reasonable

care for safety of employees in course of employmentcare for safety of employees in course of employment

-- This duty includes safety of place of work, plant & This duty includes safety of place of work, plant & machinery, method of workmachinery, method of work

-- S.26 (1) Nothing in Ordinance shall limit or affect any S.26 (1) Nothing in Ordinance shall limit or affect any civil liability of employer independently of Ordinance civil liability of employer independently of Ordinance

-- The damages awarded to employee shall be reduced The damages awarded to employee shall be reduced by the amount of Ordinance compensation.by the amount of Ordinance compensation.

99

Liability under OrdinanceLiability under Ordinance

2. 2. Statutory Liability (Ordinance)Statutory Liability (Ordinance)-- S.5 (1) Employer is liable to pay S.5 (1) Employer is liable to pay compensation compensation

in accordance with the Ordinance to employee in accordance with the Ordinance to employee for his workfor his work--related injuryrelated injury

1010

Exceptions Under Exceptions Under Ordinance LiabilityOrdinance Liability

1. 1. Injury not incapacitating employees from Injury not incapacitating employees from earning full wages at workearning full wages at work

2. 2. Injury resulting from deliberate selfInjury resulting from deliberate self--injuryinjury

3.3. False representation of previous similar injuryFalse representation of previous similar injury

4. 4. Addiction to drugs/alcoholAddiction to drugs/alcohol

1111

Arise Out of & In the Course of Arise Out of & In the Course of EmploymentEmployment

The following circumstances are deemed to arise out ofThe following circumstances are deemed to arise out ofand in the course of employment :and in the course of employment :

1. Working Overseas1. Working Overseas2. Traveling as a passenger to or from place of work by2. Traveling as a passenger to or from place of work by

means of transport provided by employermeans of transport provided by employer3. Traveling between place of residence and place of work 3. Traveling between place of residence and place of work

within a period of 4 hours of a gale or rainstorm warningwithin a period of 4 hours of a gale or rainstorm warning4. Traveling by any means of transport outside Hong Kong4. Traveling by any means of transport outside Hong Kong5. While employee is engaged in first aid, ambulance or 5. While employee is engaged in first aid, ambulance or

rescuerescue

1212

Remedies Against Third PartyRemedies Against Third Party

1.1. If Injury is caused by third party in If Injury is caused by third party in course of employmentcourse of employment

2.2. Employee may both claim compensation Employee may both claim compensation under Ordinance and take action against under Ordinance and take action against third party in court S.25(1)(a)third party in court S.25(1)(a)

1313

Compulsory InsuranceCompulsory Insurance

S40 (1) No employer shall employ any S40 (1) No employer shall employ any employee in any employment unless employee in any employment unless there is in force in relation to such there is in force in relation to such employee an Employees Compensation employee an Employees Compensation InsuranceInsurance

1414

Principal ContractorPrincipal Contractor

S40 (1B) A Principal Contractor who has S40 (1B) A Principal Contractor who has undertaken to perform ANY undertaken to perform ANY CONSTRUCTION WORK has to effect an CONSTRUCTION WORK has to effect an EC Insurance for liability of Principal EC Insurance for liability of Principal Contractor & liability of SubContractor & liability of Sub--ContractorContractor

1515

PenaltyPenalty

Fine of $50,000 andFine of $50,000 andto imprisonment for 2 years forto imprisonment for 2 years fornot effecting insurancenot effecting insurance

1616

InsurerInsurers Liabilitys Liability

S42 (1) Notwithstanding anything in S42 (1) Notwithstanding anything in a policy of insurance, an Insurer is a policy of insurance, an Insurer is liable for the amount of liability of liable for the amount of liability of employer not exceeding the available employer not exceeding the available amount coveredamount covered

1717

Recovery Right of InsurerRecovery Right of Insurer

1. Insurer has right to make recovery from 1. Insurer has right to make recovery from negligent third party causing accidentnegligent third party causing accident

2. Employer has to pay the compensation 2. Employer has to pay the compensation amount to Insurer if Insurer shall not be amount to Insurer if Insurer shall not be payable under insurance but it has paid payable under insurance but it has paid under S43 of Ordinanceunder S43 of Ordinance

1818

EmployeesEmployees Compensation Compensation Insurance PolicyInsurance Policy

1. 1. Insured name: individual, company and Insured name: individual, company and corporationcorporation

2.2. Business natureBusiness nature3.3. Policy Limit: $100M / $200MPolicy Limit: $100M / $200M4.4. Occupation of EmployeesOccupation of Employees5.5. Estimated number of employeesEstimated number of employees6.6. Estimated total salaries wages and other Estimated total salaries wages and other

earningsearnings

1919

EmployeesEmployees Compensation Compensation Insurance Policy Insurance Policy (cont(contd)d)

7.7.Warranties/ Clauses Warranties/ Clauses Restriction of works, Extension of CoverRestriction of works, Extension of Cover

8.8.Geographical Area Geographical Area Hong Kong, China, Asia, WorldwideHong Kong, China, Asia, Worldwide

9.9. TerrorismTerrorism10. Avoidance of certain terms and right or 10. Avoidance of certain terms and right or

recovery recovery if company is obliged by Ordinance if company is obliged by Ordinance to pay an amount for which the company to pay an amount for which the company would not otherwise be liable under this policy would not otherwise be liable under this policy insured shall forthwith repay the companyinsured shall forthwith repay the company

2020

Exceptions Under PolicyExceptions Under Policy (1)(1)

1.

2.

3.

4.

5.

6.

2121

Exceptions Under PolicyExceptions Under Policy (2)(2)

7. 7.

8. 8. * * * *

9. 9.

2222

Conditions Under PolicyConditions Under Policy

1.1. Claims notification Claims notification Insured shall immediately Insured shall immediately give notice in writing to give notice in writing to companycompany

2.2. Other InsuranceOther Insurance

3.3. Subrogation Subrogation company shall be entitled company shall be entitled to prosecute in name of to prosecute in name of Insured against negligent Insured against negligent party causing accidentparty causing accident

4. Precautions 4. Precautions take reasonable take reasonable precautions to prevent precautions to prevent accident and diseaseaccident and disease

5. Change of Risk 5. Change of Risk immediately notify immediately notify Insurer in writingInsurer in writing

6. Cancellation 6. Cancellation Cancellation shall take Cancellation shall take effect 7 days after date effect 7 days after date of posting notice of of posting notice of cancellationcancellation

2323

Amount of Compensation Amount of Compensation (1)(1)per Ordinanceper Ordinance

1.1. Death Death with dependants wholly dependent on with dependants wholly dependent on deceaseddeceased

Age of DeceasedAge of Deceased AmountAmountUnder 40 84 months earningsUnder 40 84 months earnings

/ $303,000/ $303,00040 to Under 56 60 months / $303,00040 to Under 56 60 months / $303,00056 or above 36 months / $303,00056 or above 36 months / $303,000

2424

Amount of Compensation Amount of Compensation (2)(2)per Ordinanceper Ordinance

2.2. Permanent total incapacityPermanent total incapacity

Age of DeceasedAge of Deceased AmountAmountUnder 40 96 months earningsUnder 40 96 months earnings

/ $344,000/ $344,00040 to Under 56 72 months / $344,00040 to Under 56 72 months / $344,00056 or above 48 months / $344,00056 or above 48 months / $344,000

** Monthly earnings is subject to a max. of HK$21,000** Monthly earnings is subject to a max. of HK$21,000for purpose of calculating compensation for fatal or for purpose of calculating compensation for fatal or permanent total incapacity casepermanent total incapacity case

2525

Amount of Compensation Amount of Compensation (3)(3)per Ordinanceper Ordinance

3.3. Temporary incapacityTemporary incapacity

-- 4/5 of difference between employee4/5 of difference between employees s monthly earning at time of accident and monthly earning at time of accident and during period temporary incapacityduring period temporary incapacity

-- Period shall not be longer than 36 Period shall not be longer than 36 monthsmonths

2626

Percentage of Loss ofPercentage of Loss ofEarning CapacityEarning Capacity

100%100%Total loss of Hearing, both earsTotal loss of Hearing, both ears

30%30%Loss of Hearing of one earLoss of Hearing of one ear

70% / 75%70% / 75%Loss of 4 fingers of one handLoss of 4 fingers of one hand

70% / 75%70% / 75%Loss of 4 fingers & thumb of one handLoss of 4 fingers & thumb of one hand

70% / 75%70% / 75%Loss of Hand at wristLoss of Hand at wrist

100%100%Total ParalysisTotal Paralysis

100%100%Total Loss of SightTotal Loss of Sight

100%100%Loss of 2 limbsLoss of 2 limbs

2727

Calculation of EarningsCalculation of Earnings

Earning includes:Earning includes:1.1. Cash wagesCash wages2.2. Value of benefit estimated in cash e.g. Value of benefit estimated in cash e.g.

food, quarters, fuel food, quarters, fuel 3.3. Overtime or bonus, allowance (Constant Overtime or bonus, allowance (Constant

nature)nature)4.4. Customary tipsCustomary tips

2828

Assessment of Loss of Assessment of Loss of Earning CapacityEarning Capacity

A 2A 2--Tier Assessment BoardTier Assessment Board1. Ordinary assessment board 1. Ordinary assessment board

% of loss earning capacity% of loss earning capacity(first schedule annexed to Ordinance)(first schedule annexed to Ordinance)

2. Special assessment board 2. Special assessment board Special circumstances of EE Special circumstances of EE qualification, training, experiencequalification, training, experience

2929

Occupational DiseasesOccupational Diseases

If incapacity as a result of If incapacity as a result of Occupational Occupational DiseaseDisease and is due to and is due to Nature of Nature of EmploymentEmployment at time within at time within prescribed prescribed periodperiod immediately preceding incapacity immediately preceding incapacity be entitled to compensation under EC be entitled to compensation under EC OrdinanceOrdinance

3030

Amount of Insurance AmountAmount of Insurance Amount

$ 200 M$ 200 MSubSub--ContractorContractor

$ 200 M$ 200 MMore than 200 /More than 200 /Group of companiesGroup of companies

$ 100 M$ 100 MNot more than 200 Not more than 200

AmountAmountNo. of EmployeesNo. of Employees

3131

EmployeesEmployees Compensation Compensation Assistance SchemeAssistance Scheme

Aim is to provide compensation to:Aim is to provide compensation to:

An injured employee unable to recover An injured employee unable to recover compensation from employer because compensation from employer because employer is uninsured or untraceable or employer is uninsured or untraceable or employeremployers Insurer is insolvents Insurer is insolvent

3232

Limit for Common Law Limit for Common Law CompensationCompensation

1.1. No limitNo limit2.2. Compensation amount categorized under:Compensation amount categorized under:

-- Pain and sufferingPain and suffering-- Pecuniary lossPecuniary loss-- Future loss of earningsFuture loss of earnings-- Provision of careProvision of care

3333

(1)(1)1. 1.

3434

(2)(2)

2. 2.

http://www.labour.gov.hk 2 2B

3535

(3)(3)2a 2B

2b 2

H

2c 2

3636

(4)(4)

3. 3.

A. 22BB. C. D.

3737

(5)(5)4.

5.

75

3838

Employment ProtectionEmployment Protection

An employer shall not terminate the An employer shall not terminate the contract of service of employee who contract of service of employee who has suffered incapacity which has suffered incapacity which entitles him to compensation under entitles him to compensation under Ordinance S.48Ordinance S.48

3939

(1)(1)--(5)(5)

Notification of AccidentNotification of Accident1.1. Injured employee have to give employer notice ASAPInjured employee have to give employer notice ASAP2.2. Employer must report Labour Department :Employer must report Labour Department :

a. fatal accident a. fatal accident Form 2 or Form 2 or Form 2A (with 7 days)Form 2A (with 7 days)

b. total or partial incapacity b. total or partial incapacity Form 2 or 2A (more than 3 days) within 14 Form 2 or 2A (more than 3 days) within 14 days from accidentdays from accident

c. If employer not aware of accident, notify Labour c. If employer not aware of accident, notify Labour Department within 7 or 14 days after he knows the Department within 7 or 14 days after he knows the accidentaccident

4040

Settlement of ClaimsSettlement of Claims

1. Direct Payment 1. Direct Payment Incapacity for not more than 3 days Incapacity for not more than 3 days Pay in normal payment dayPay in normal payment day

2. Direct settlement2. Direct settlementFor not more than 7 days For not more than 7 days Employer directly agree with employee as to Employer directly agree with employee as to compensation payable.compensation payable.

4141

Settlement of ClaimsSettlement of Claims

3. Settlement of certificate for other cases, Labour 3. Settlement of certificate for other cases, Labour Department will issue Form 5 (Certificate of Department will issue Form 5 (Certificate of Compensation Assessment) stating amount of Compensation Assessment) stating amount of compensation payablecompensation payable

4. Permanent Loss of Earning capacity 4. Permanent Loss of Earning capacity Form 7, 8, Form 7, 8, 9 or 109 or 10

5. If incapacity period exceeds 3 days but not 5. If incapacity period exceeds 3 days but not exceeds 7 days, employer may enter into an exceeds 7 days, employer may enter into an agreement with injured employee as to agreement with injured employee as to compensation payablecompensation payable

4242

Objection of AssessmentObjection of Assessment

1.1. Any objection to assessment by either Any objection to assessment by either party must be made in writing to Labour party must be made in writing to Labour Department within 14 days after issue of Department within 14 days after issue of CertificateCertificate

2.2. Certificate of review of Compensation Certificate of review of Compensation Assessment (Form 6)Assessment (Form 6)

4343

Settlement By CourtSettlement By Court

Any compensation claim which Any compensation claim which cannot be settled in above way cannot be settled in above way shall be determined by District Courtshall be determined by District Court

4444

282 282

http://www.labour.gov.hk/legislat/content1 .htmhttp://www.labour.gov.hk/legislat/content1 .htm

4545

282 282

4646

282 282

4747

282 282

* 21,000

# 36*303,000 #56

60* 303,000 #

4056

84* 303,000#

40

4848

282 282

35,000

200081

4949

282 282

* 21,000

#

96*344,000#

40

48*344,000

56

72*344,000 #

4056

5050

282 282

24

- x 4/5

2412

5151

282 282

200

280

5252

282 282

5353

282 282

5454

THANK YOU THANK YOU

5555

PUBLIC LIABILITY INSURANCEPUBLIC LIABILITY INSURANCE

*

* * * *

5656

(1)(1)

(legal expenses)

5757

(2)(2)

5858

(1)(1)

1.

2.

5959

(2)(2)

3. (Contractual Liability)

4. (Standard exclusions) Electronic Data Exclusions

5. (Excess Clause)

6060

(3)(3)

6. Safety Precautions

7. Principals Property

8. Vibration or Removal or Weakening of Support

6161

(adjustable premiums) (provisional premium)

6262

Claim-Occurring Basis

Claim-made

6363

* * **(Material Facts) =

6464

* * **:1.:

6565

* * **:

2.: ()

6666

* * **:3.

4.:

6767

* * **:

5.

6.

6868

THANK YOU THANK YOU