Proper insurance coverage for construction workers

A satisfactory measure has been worked out to ensure that bona fide employees in construction sites are accorded with proper insurance coverage for injuries sustained at work. 

This was revealed by Mr Thomas Kwok, Chairman of the Working Group on Construction Site Safety and Employees' Compensation Insurance set up by the Provisional Construction Industry Coordination Board (PCICB).

"Our primary concern has always been the welfare of construction workers, particularly those who have registered as 'self-employed persons' under the Mandatory Provident Fund (MPF) Scheme but who are, for all intent and purposes, employees," said Mr Kwok.

"In recognition of this problem, the insurers of the Hong Kong Federation of Insurers (HKFI) have agreed to consider all relevant aspects of an employment relationship in determining whether or not a worker is to be regarded as employee, rather than relying solely on his or her status under the MPF Scheme," he said.

"This understanding is now enshrined in the revised Code of Best Practice for Employees' Compensation Insurers," said Mr Kwok, adding that this was achieved by the joint efforts made by the PCICB, HKFI, the Labour Department (LD) and the Hong Kong Construction Association.

LD has also promulgated to the insurers a set of factors commonly adopted by the Court in determining the employment status of a worker such as undertaking of financial risks, responsibility for investment and management, overall control of work, existence of profit elements, possession of tools and equipment, as well as power to hire and fire other workers.

"These measures, coupled with increased awareness on the part of contractors to maintain accurate wage and attendance records, should help to reduce unnecessary disputes and enable bona fide employees to obtain statutory compensation without lengthy court proceedings," Mr Kwok added. 

He further emphasised that the most sensible way for contractors to safeguard themselves and the interest of their workers is to accord clear and proper identity to workers, thereby avoiding any ambiguity in employment status.

On the other hand, LD has rolled out a number of initiatives to facilitate better work injury management under the auspices of the working group.

In June last year, the Early Work Injury Management Facilitation Scheme was launched so that insurers could take early steps in managing work injuries by providing assistance to the employer and injured workers so as to avoid unnecessary delays and complications.

The Voluntary Rehabilitation Programme, launched in March 2003, aims at providing an additional channel of timely medical intervention to speed up the recovery of injured workers and facilitate their early return to work.

To foster a safety culture in the industry, the PCICB has assisted HKFI in drawing up a premium rebate scheme to reward good performance based on claims ratios, accident rates and outcome of audit inspections.  Leveraging on the successful practices adopted by different stakeholders, the PCICB will continue to strive for effective measures to enhance construction site safety.


End/Sunday, July 20, 2003
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