Hong Kong beauty parlours take out insurance

Complaints spur beauty industry union to develop insurance scheme for accredited members

Hong Kong beauty parlours take out insurance

Insurance News

By Gabriel Olano

A beauty industry federation in Hong Kong has taken out insurance cover following a spate of complaints against beauty parlours.

The Hong Kong Beauty Industry Union has agreed with major property and casualty insurer Chubb to create an insurance solution that will cover beauty parlours and improve the quality of their service. The union also launched an accreditation scheme and mediation service for its members.

The move comes after the Customs and Excise Department revealed that in the first 10 months of 2017, it received 411 reports against beauty services establishments and practitioners for alleged unfair business practices.

“There has not been any insurance scheme for beauty parlours before. With this scheme, consumers’ rights would be protected if they got injured during a procedure,” Joyce Tsang Yue, founding chairwoman of the Hong Kong Beauty Industry Union, said in the South China Morning Post.

The insurance policy covers beauty parlours that earn below HKD50 million (US$6.4 million) annually, as long as they are accredited members of the union, reported SCMP. Premiums will range from HKD10,000 to HKD50,000, depending on the amount insured, which will be at least HKD3 million.

According to Agnes Koon Woo Kam-oi, an insurance broker and chairwoman of the Insurance Training Board of the Vocational Training Council, additional cover can also be bought if the beauty establishment offers sensitive medical procedures such as Botox injections.

Koon, who assisted the union in developing the insurance scheme, added that it was difficult for beauty parlours to obtain insurance in the past due to lack of proper regulation in the industry.

The union has developed a system to accredit establishments in order for them to become eligible for insurance. Parlours will be assessed by the Hong Kong Productivity Council, which will determine if their equipment, procedures, and management are up to standard.

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