Insurance Plans & Coverage

This page aims to outline the insurance coverage requirements for a sponsor when hiring a domestic employee in Cyprus.

Insurance Coverage for Hiring a Domestic Employee in Cyprus

When a sponsor decides to hire a domestic employee in Cyprus, it is essential to understand the insurance coverage required by law. These insurance policies ensure both the employee’s well-being and the sponsor’s protection from financial liabilities. Below is a breakdown of the mandatory insurance types and their key differences, with examples of available plans.

Insurance Requirements

Under Cypriot law, sponsors are required to provide additional coverage related to specific needs of the domestic worker, such as the transport of mortal remains in the event of death.

Plan A:

This is a common insurance plan that includes coverage for primary and secondary medical care, as well as the transport of mortal remains. It is designed to meet the legal requirements set by the Migration Department of Cyprus.

GeSY Registration:

Another option involves registering the worker under Cyprus’ General Healthcare System (GeSY) and supplementing it with private insurance to cover specific additional needs like transport of mortal remains.

Employer’s Liability Insurance

This insurance is designed to protect the employer from financial obligations and legal actions in case the employee suffers a work-related injury or illness. It ensures that the employer is not directly responsible for paying medical bills or compensation resulting from on-the-job incidents.

Coverage Includes:

  • Compensation for injuries or illness sustained during work.
  • Legal protection in case the worker sues for damages related to the workplace injury.
  • Accident coverage to prevent large financial payouts by the employer.

Advantages:

  • Protects employers from significant legal and medical costs.
  • Helps in fulfilling legal obligations and avoiding penalties for insufficient coverage

Medical Insurance for Foreign Workers

This is a compulsory insurance for all foreign workers from non-EU countries, as mandated by Cypriot law. The policy provides coverage for both inpatient and outpatient medical expenses, including hospital treatments, surgeries, and emergency care.

Coverage Includes:

  • In-hospital and out-of-hospital treatments related to accidents or illnesses.
  • Emergency treatments.
  • Regular medical check-ups if needed during the employment period.

Examples of Medical Insurance Plans:

  • InsuranceLink Cyprus – Foreign Workers Medical Insurance: This plan offers basic statutory medical cover, which can be issued quickly and meets all legal requirements. It covers expenses related to accidents, illnesses, and hospital care

Exclusions:

  • Pre-existing medical conditions.
  • Cosmetic and plastic surgeries.
  • Dental and ophthalmological treatments.
  • Mental health disorders

Comparison of Insurance Types

Additional Plans, such as Plan A, ensure full legal compliance by covering specific obligations such as the transport of mortal remains.

Employer Liability Insurance is centered around protecting the employer from the financial and legal consequences of workplace injuries.

Medical Insurance focuses on healthcare coverage, ensuring the worker can access necessary medical services.

Conclusion

To hire a domestic worker in Cyprus, the employer must secure both Medical Insurance and Employer’s Liability Insurance. Medical insurance ensures the worker’s health is adequately covered, while employer liability insurance shields the sponsor from potential legal and financial risks. Additionally, plans like Plan A ensure that all legal requirements are met, including the transport of mortal remains. These policies not only fulfill the legal obligations but also offer peace of mind to both the employer and the employee.

The choice between the available insurance options will be presented to you as part of the employee engagement process. Our agency collaborates with some of the largest insurance providers in Cyprus, ensuring that you are fully protected in compliance with legal requirements and that your employee has access to necessary medical services when required.