Construction Insurance

Claims Handling Procedures

15 March 2016

Brief Review
Contractors All Risks (CAR)
Section I
Section II

Employees Compensation (EC)

Brief Review CAR

CAR Section I
Material Damage (Temporary & Permanent Works
but excluding Constructional Plant and Temporary
Buildings)
Professional Fees
Removal of Debris (RoD)
Temporary Buildings*
Constructional Plant (other than Tower Cranes)*
Tower Cranes*
*listed items with corresponding insured amount

Brief Review CAR

CAR Section II
Accidental bodily injury (including death) and/or loss
or damage to physical property caused by the
Insured including all costs and expenses of litigation

Brief Review CAR Major

Endorsements

Vibration or Removal or Weakening of Support

Testing and Commissioning
Designers Risk
Inland Transit
Offsite Storage
Extra Charges for overtime, night work
Employers / Principals Property
Employers employees as Visitors

Brief Review EC Chapter 282

Application
An employer is liable to pay compensation in respect of
injuries sustained by his employees as a result of an
accident arising out of and in the course of employment;
or in respect of occupational diseases specified in the
Ordinance suffered by the employees.
The Ordinance in general applies to employees who are
employed under a contract of service or apprenticeship.
Employees who are injured while working outside Hong
Kong are also covered if they are employed in Hong Kong
by local employers.

Brief Review EC Chapter 282

Assessment of Loss of Earning Capacity

A two-tier system - Employees' Compensation (Ordinary
Assessment) Board and Employees' Compensation (Special
Assessment) Board - is provided for to assess the necessary
period of absence from duty and the percentage of loss of
earning capacity permanently caused to the employee as a
result of the work injury.

Brief Review EC Chapter 282

Compensation for death
Age of deceased employee

Amount of compensation

under 40

84 months' earnings(1) or minimum amount

of compensation(2), whichever is higher

40 to under 56

60 months' earnings(1) or minimum amount of

compensation(2), whichever is higher

56 or above

36 months' earnings(1) or minimum amount

of compensation(2),whichever is higher

(1) - Maximum monthly earnings = HKD26,070.00

(2) - Minimum amount of compensation for death = HKD375,950.00

Brief Review EC Chapter 282

Funeral and medical attendance expenses in fatal
cases
Any person who has paid funeral and/or medical attendance
expenses on an employee who died in a work-related accident
is entitled to claim reimbursement from the employer of the
deceased employee of such expenses not exceeding
HKD76,220.00.

Brief Review EC Chapter 282

Compensation in cases of permanent total incapacity
Age of deceased employee

Amount of compensation

under 40

96 months' earnings(1) or minimum amount

of compensation(2), whichever is higher

40 to under 56

72 months' earnings(1) or minimum amount of

compensation(2), whichever is higher

56 or above

48 months' earnings(1) or minimum amount

of compensation(2),whichever is higher

(1) - Maximum monthly earnings = HKD26,070.00

(2) - Minimum amount of compensation payable for permanent total
incapacity = HKD426,880.00

Brief Review EC Chapter 282

Periodical Payment

An employee is entitled to receive periodical payments during the

period of temporary incapacity (sick leave) up to 24 months. The
payment should be calculated as follows:
Monthly earnings
Monthly earnings
( at the time of
less
after
) X 4/5
the accident
the accident

If the employee's temporary incapacity lasts more than 24 months,

he may apply to the Court for an extension of his entitlement for the
payment. The extended period shall not be longer than 12 months.

Brief Review EC Chapter 282

Medical Expenses
the medical expenses for each day of stay in the
hospital where an employee is given medical
treatment as an in-patient

HKD200.00

the medical expenses for each day on which an

employee is given medical treatment other than as an
in-patient in a hospital

HKD200.00

the medical expenses for each day on which an

employee is given medical treatment both as an inpatient in a hospital and other than as an in-patient in
a hospital

HKD280.00

Brief Review EC Chapter 282

Settlement of Claims

Depending on the nature of the case, a claim for employees'

compensation can be settled in the following ways:
Direct Payment
Determination of compensation by agreement according to the
Ordinance
Settlement by Certificate
Settlement by Court

Claims Procedure
Situation

Form

Submission Deadline

2B

Within 14 days

# of sick leave is more

than 3 days

Within 14 days

Death

Within 7 days

# of sick leave is 3
days or less

The above Form must be made in 2 copies, 1

copy to Labour Department and 1 copy to
insurance broker / insurance company for
handling

Claims Procedure
Apart from Form 2 / Form 2B, the below
documents must be enclosed for handling:
Copy of ID of the Injured;
Copy of Construction Workers Registration Card and
Construction Industry Safety Training Certificate of the
Injured
Original Copy of Sick Leave certificate;
Original Copy of Medical Expenses receipt;
Payment Receipt signed by the Injured acknowledging
receipt of the compensation

Claims Procedure
(Contd)
MPF Record
Employment contract (and its amendments)
Copy of Payroll record for the past 12 months prior to
the accident
Copy of Payroll record for the past 12 months of 2
comparable workers of the same type if the Injured is
employed for less than 1 month
Copy of sub-contracting contract between Main
Contractor and Sub-contractor

Claims Procedure
After Assessment by the Labour Department, the
below documents must also be submitted

Form 5 Certificate of Compensation Assessment

Form 6 Certificate of Compensation Re-Assessment
Form 7 Certificate of Assessment
Form 9 Certificate of Review of Assessment

Claims Procedure
Legal Documents
Should you receive any legal documents e.g. writ of
summons, please save 1 copy for yourself and submit
a copy to us for handling
Do not reply or admit any liability
Legal action can only be taken within 36 months from
the date of accident

Claims Example Case 1

Type of Works: Building A&A Works
Type of Loss: Water Damage to Busbars falls
under Nominated Sub-contractor (NSC)
Involved Cleaning and Replacement

What do you need to prepare to submit this

Claim?

Case 1 Procedure
Claim Form (to be provided by Insurer)
Description of exact location of the incident
Photos of the surrounding areas and the damaged
parts
Incident Report(s), if any
Any letters issued by Consultant or Employer or NSC
All Invoices / Billings
*For this case, since there is a replacement of
busbars, the removed busbars becomes the property
of Insurer which must return to the appointed Loss
Adjuster or Insurers representative

Claims Example Case 2

Type of Works: Water Mains Construction
Type of Loss: Burglary at Site

What do you need to prepare to submit this

Claim?

Case 2 Procedure

Claim Form (to be provided by Insurer)

Police Report
Description of exact location of the incident
Photos of the incident location
Incident Report(s), if any
Description of Loss items and its cost with supporting
documents
CCTV footage, if any
*Loss Adjuster normally will be appointed for such
case. Please only clean up the incident area after
Loss Adjuster has conducted their investigation.

Claims Example Case 3

Type of Works: Building A&A Works

Type of Loss: Fire Damage
Works are at least 50% completed
Building collapsed due to fire damage
Damages to 3rd parties are also reported
What do you need to prepare to submit this
Claim and what can be covered?

Q&A

Contacts
Westfield Holdings Limited
Christopher Cheng
Direct: (852) 2510-7999
Tel: (852) 2510-7299
Fax: (852)2510-7566
E-mail: christopher.cheng@wfhl.hk