If you live in Hong Kong, selecting whether or not you require health insurance is a highly personal decision. Unlike the United States or Switzerland, Hong Kong does not require residents to have health insurance. It will largely rely on whether you choose to use public or private healthcare. It is critical that you understand how the system works and the associated costs before proceeding. Here are three points to consider while making your decision.
Do you have to pay for healthcare in Hong Kong?
Hong Kong inhabitants have a life expectancy of 85.9 years for women and 80 years for males, thanks to early health education, professional health services, and a well-developed health care and medication system. Furthermore, individual healthcare in Hong Kong is essentially free.
Is medical insurance compulsory?
Yes, after the nation-wide COVID-19 lockdown in 2020, medical insurance for employees will be required. Here’s a quick rundown of the Group Mediclaim Policy before we get into the details.
Individual health insurance is what you get when you buy insurance for yourself.
A Group Insurance Scheme is when you buy insurance for yourself and others in a group.
Group Insurance for Employees is what happens when an employer buys Group Health Insurance to cover their employees.
Understanding the Basic Coverage
Employees can take advantage of a free group insurance policy because the company pays the policy premium on their behalf. This policy pays for the employee’s (and, in some situations, the employee’s family’s) hospitalization expenses up to a certain level.
Recent Updates
There was no clear rule requiring such a cover prior to 2020. However, following a pandemic-plagued year, the authorities have enacted additional laws in this area.
Medical insurance will be made mandatory as of April 1, 2020, according to a circular released by the Insurance Regulatory and Development Authority of India (IRDAI).
Following the shutdown, businesses were required to follow a Standard Operating Procedure for resuming operations, which included providing workers with insurance.
The IRDAI issued this circular to health insurance companies in order to execute Ministry of Home Affairs regulations.
The IRDAI recommended non-life insurers to develop plans that are comprehensive, inexpensive, and easy to understand.
In which country health insurance is compulsory?
According to the ‘NATHEALTH’ Healthcare Federation of India, the government should make health insurance mandatory for all citizens and make healthcare a priority sector.
Medical care is expensive nowadays, and inflation is rising, so don’t you think a trip to the hospital will exacerbate your financial issues at a time when we are all already under financial stress? The Indian Health System is regularly told that it must improve and adapt to the new order, but we can’t agree on what that order should be.
In recent years, the government has launched a scheme known as the Rashtriya Swastha Bima Yojana (RSBY), which provides low-income people with insurance of Rs.30,000. The Central Government pays 75% of the premium, with the State Government covering the remaining 25%.
What I observe is that some states are attempting to engulf more and more people with insurance programs, but I have yet to see a Germany-style required insurance or a US-style Obamacare.
Only 4% of India’s population is covered by medical insurance at the moment. So, how can we expand the number of people covered by health insurance in the world’s second-largest country? There is an urgent need to overcome this Sisyphean problem, and IRDA is constantly asking insurers to expand health insurance penetration beyond SEC A1 and A2.
“The fact that health insurance is currently optional is the main reason for its poor penetration,” stated Arvind Lal, President of NATHEALTH.
Many people in India find up in the BPL Section as a result of health difficulties. According to the National Health Policy, about 63 million individuals endure poverty each year as a result of significant health issues. This is because, in the event of a health emergency, they are forced to spend all of their funds due to the exorbitant expense of healthcare. As a result, purchasing health insurance is a far more cost-effective option. Providing health insurance to the BPL population as a requirement would help to secure their futures.
The expense of healthcare in India is outrageously high. The cost of a particular treatment rises by an average of 12% each year, which is higher than the 7% annual inflation rate. The growing expense of healthcare has rendered it unaffordable for a large portion of the population. Furthermore, the private sector owns a significant portion of healthcare services, exacerbating the problem.
It is always beneficial to learn from someone who is doing better. There are countries around the world that have made health insurance compulsory, and their populations have reaped the benefits. Everyone in Switzerland is required to have health insurance, regardless of age or medical condition. The Obamacare program in the United States ensures that senior citizens and the impoverished are covered by the government. Furthermore, Germany has a mandatory health insurance program.
It is now up to legislators to determine whether to implement a socialized medicine system or any other health insurance tax structure. The statistics on health insurance in India need to change dramatically, and quickly, because India will never be able to grow fully unless healthcare is made available and inexpensive to all. It is past time for Health Insurance to be acknowledged as a specialty business field in India as well.
Accounts receivable
The value of things or services you’ve sold but haven’t yet received payment for is included in your accounts receivable. With trade credit insurance, you may insure this and preserve your cash flow. Credit insurance is also used by many firms to assist them acquire funding, attract new clients with favorable credit conditions, and reduce risk when entering new markets. We provide bespoke credit insurance solutions for organizations of all kinds, from SMEs to global giants, at Atradius Hong Kong. We help enterprises that trade both locally and internationally, as well as organizations who need to insure long-term projects with fixed costs.
Liability
Public liability, management liability, and product liability are all examples of liability insurance. This insurance protects your company from being sued if it causes damage to another individual or company. Professional indemnity insurance protects you in the event of a contract violation or professional negligence. Some businesses in Hong Kong are required to have liability or professional indemnity insurance.
Commercial vehicles
Commercial vehicle insurance, like individual vehicle insurance, is required. For corporate vehicles that must be protected by a specialised policy, private car insurance is not appropriate. This insurance typically covers car loss or damage due to an accident, legal fees, and third-party injuries or damage. Specialized vehicles and multi-vehicle fleets are covered by several commercial vehicle insurers.
Property damage or theft
Damage and theft to business property or products are normally covered by buildings and contents insurance. It may also cover businesses against fire, riots, hurricanes, and subsidence, depending on the policy. The expense of repairing or rebuilding a business’s premises, as well as replacing equipment and goods, is normally covered by buildings and contents insurance. Your insurer will work with you to arrange customized tools, equipment, or machinery coverage.
Employee protection
Employers are required by the Employees’ Compensation Ordinance to compensate employees for work-related injuries, illnesses, or diseases. It applies to all employees, including apprentices, regardless of their income level. Employees who are injured at work can also file a lawsuit against their company outside of the Employees’ Compensation Ordinance. Employee protection insurance will assist in lowering the costs of such remuneration. Furthermore, many insurance companies include health insurance as part of their employee benefits packages.
Business interruption
If you are forced to halt operating for a length of time, mitigating the cost of refurbishment following a fire or receiving recompense for the loss of items may not be enough to save your firm from going under. Business interruption insurance will compensate you for income lost due to the inability to trade. It is frequently sold as an add-on to buildings and contents insurance policies. Atradius also responds rapidly to outstanding invoices, recognizing that preserving cash flow is critical for small businesses.
Is healthcare expensive in Hong Kong?
Is healthcare in Hong Kong free? No. The public healthcare system in Hong Kong is nearly free and relatively affordable for HKID holders. Medical costs in the private sector, on the other hand, vary substantially behind the United States, Hong Kong is the world’s second most expensive private healthcare.
Why is health insurance not mandatory?
In India, the majority of the population relies on household income or savings to satisfy their healthcare needs.
The main reason why Indians do not get a mediclaim policy is that it does not provide a maturity benefit, but simply provides compensation in the event of an illness. Furthermore, there is a lack of understanding about health insurance among the general population in India, which is another explanation for the low number of insured persons in the country.
Is it compulsory to provide medical insurance to employees?
Medical insurance for workers should be made mandatory, according to clause no. 5 of Annexure II of the aforementioned SOP for social distancing for offices, workplaces, factories, and institutions.
Is insurance compulsory for Dubai visa?
To enter Dubai, UAE, you must have travel insurance. The UAE government has issued a visa regulation requiring all UAE tourists to have a valid medical insurance policy at the time of visa application; external health insurance is not recognized.
Medical costs in Dubai are as high as its skyscrapers, so if you want someone to look after you, get a Dubai travel insurance policy that covers all medical crises as well as other situations like airline delays, passport loss, personal liability bonds, luggage loss, and so on.
Which country has free healthcare for foreigners?
Almost every European country provides healthcare to all inhabitants. Most European countries have competitive private health insurance markets, as well as government regulation and assistance for those who cannot afford premiums. Austria, Belarus, Bulgaria, Croatia, Czech Republic, Denmark, Finland, France, Germany, Greece, Iceland, Isle of Man, Italy, Luxembourg, Malta, Moldova, Norway, Poland, Portugal, Romania, Russia, Serbia, Spain, Sweden, Switzerland, Ukraine, and the United Kingdom are among the countries that have universal healthcare.