Extra COVID-19 Benefits from Hong Kong Insurers (Updated May 2021)

In recent weeks, Hong Kong has been hit by the spread of new COVID-19 variants in the community. Residents of several buildings have been quarantined. The new variants are also causing spikes in new coronavirus cases around the world. Since the COVID-19 hit, insurers in Hong Kong have offered extra coronavirus specific benefits to their existing and new customers, including hospital cash, quarantine cash, waiver of waiting period, express claims and others. While some of these special coverage offers have expired or are expiring soon, a few insurers have taken the initiative to extend the coverage. We hope more insurers will follow suit to continue to provide extra COVID-19 coverage to customers during these difficult times. The following is a summary of the offers (as of 5th May 2021) from AXA, Blue, Blue Cross, BOC Life, Cigna, Hang Seng, HSBC Life, Tahoe, Well Link, YF Life and ZA. 10Life has compared the extra COVID-19 benefits and analysed the usefulness for customers.

In Hong Kong most people buy medical insurance to get quick and comfortable treatment services at private hospitals. Given all COVID-19 patients are being treated in public hospitals which are virtually free of charge, the common medical insurance products offer limited protection on this commutable disease. In response many insurance companies in Hong Kong have launched additional free coverage on COVID-19. One key feature is hospital cash benefits, so the insured can still enjoy cash subsidies from the insurer even when admitted to a public hospital. The coronavirus hospital cash benefit is usually on a daily (or weekly) basis, with an overall limit on total value and/or benefit period. As the treatment and observation time on confirmed COVID-19 cases is still uncertain, a longer benefit period would be beneficial to the customer. Hang Seng provides the highest daily hospital cash benefit of $1,200, but the total compensation amount is capped at $18,000, i.e., the maximum hospital period is 15 days. Currently HSBC Life has the most generous offer in the market with daily cash benefit of $1000 and a maximum of 45 days (i.e. $45,000).

Some insurers offer quarantine cash benefits which usually is a one-off lump sum ($2,000-$4,000). In most cases these quarantine cash benefits are offered in lieu of hospital cash benefits when the insured is isolated involuntarily at a specified quarantine facility or hospital due to coronavirus. Cigna is the only one that also covers mandatory home quarantine (for Cigna HealthFirst Elite customers).

A few insurers offer a diagnosis benefit where a lump sum amount (ranged from $10,000 to $100,000) is paid if the insured is diagnosed with coronavirus. Some also offer a death benefit due to coronavirus (ranged from $180,000 to $250,000). Other special COVID-19 related offers include wavier of waiting period so that new customers can also get coronavirus coverage immediately, and express claims processing as fast as 1 day. Most insurers are offering these coronavirus benefits as extra free coverage to both existing and new customers. Some insurers offer certain benefits only to new customers to drive sales. 

While many of these free extra benefits have limited actual dollar value and coverage period, they can be considered as a nice gesture from the insurer to the customer. While this COVID-19 crisis has prompt us to think about our protection gap, we should choose insurance products based on overall personal needs, not only the coronavirus coverage. In reality, the coverage against COVID-19 is limited for most insurance products in Hong Kong.

Insurance is a risk transfer tool. You get compensations from the insurer only when the risk event occurs. With COVID-19 rapidly developing it is much more important to avoid the risk event itself. We can all do our share by observing personal hygiene and practising social distancing, thereby minimising the risks for our community.  

Note: The content of this webpage is for reference only and not a financial advice. The above information is provided by 10Life and as of May 5, 2021.