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ii.
Employer responsibility
Principal and immediate employers who employ one or more employees are responsible to
register and pay the contributions to SOCSO. The principal employers are also accountable to
ensure the registration and payment of contributions for all employees employed by the
immediate employer. Failure to do so, and in the absence of the Immediate employer,
Principal employers will be deemed liable under the Act.
B) Employees
i.
Employees who are eligible for coverage and protection under the Act are:
Employee receiving a monthly wages of more than RM3,000 and is not eligible under the
Act, however he can still be covered upon mutual agreement between employer and the
employee by submitting a notice in the specified form, together with Form 2 (refer to
Appendix).
'Once-In-Always-In' principles
Pursuant with the Once-In-Always-In principle, employees who have already contributed
and whose monthly wages exceed RM3000 thereafter, are required to continue contributing.
ii.
All employees who have not attained 60 years of age are required to contribute under
the first category, except those who have attained 55 years of age and have made no
prior contributions before they reach 55 years.
The rates of contribution under this category comprise of 1.75% employers share and
0.5% employees monthly wages.
The contribution is paid by the employer only. An employee who is not eligible for
coverage under the Invalidity Pension Scheme is protected under this category.
For employees above 55 years old when he first register and contribute to SOCSO
Insured Person receiving Invalidity Pension and still working and receiving less than
1/3 of the average monthly wages before the invalidity.
Under this Category, the contribution is paid by the employer for the Employment
Injury Scheme.
The rate of contribution under this category is only 1.25% of the employees monthly
wages solely borne by the employer.
These schemes provide the benefits of invalidity pension, invalidity grant, survivors pension,
rehabilitation, funeral benefit, constant attendance allowance and educational loan.
Payment of Contribution
Contributions can be paid through 3 methods:
1) Payment through collection agents
2) Payment through internet banking
3) Payment at SOCSO offices
Scope of cover
i) Accidental death due to employment injury
Benefits
60 months earnings or RM18000 whichever is
lower.
Additional payment of RM7,000 in event of death
arising out of and in the course of employment
60 months earnings or RM23000 whichever is
lower
A sum of money based on the capital sum of
RM23000 calculated in accordance with the First
Schedule of the Workmens Compensation Act.
A sum of money calculated in accordance with
Section 8(e) of the Workmens Compensation Act
Pays in accordance with the provisions of the
Workmens Compensation Act subject to maximum
RM750
According to the Second Schedule of the Act.
Note: Compensation shall not be payable for first 4 days of disablement unless the disablement lasts
for a period of at least 14 days.
i)
ii)
iii)
iv)
Temporary Disablement
v)
Medical Expenses
3. Premium
The minimum annual premium is RM 76.32 (RM 71.02 + SPPA service fee RM5.30) per
foreign worker excluding stamp duty (Premiums stated are inclusive of 6% GST).
SPPA service fee is a fee charged for electronic link-up service for Skim Pampasan Pekerja
Asing (SPPA) / Foreign Workers Compensation Scheme (FWCS). Insurer will act as
collection agent on behalf of Labour Department and shall not be responsible for all matters
arising out of the service for which the fee is levied.
Amount
6% of the premium
Stamp duty
RM10.00
Goods & Services Tax (GST) will be imposed on the applicable portion of the premiums due
and payable upon GST implementation and where GST is applicable.
5. Importance of Products Disclosure (Terms and Conditions)
i.
ii.
Customer must ensure that the particulars of their foreign workers are fully completed
and correct.
iii.
6. Major Exclusions
This policy does not cover certain losses, such as:
Common law liability.
War, terrorism and civil war.
Unlawful act, suicide and intentional self-injury.
Flying or travelling in an aircraft unless as a fare-paying passenger in a licensed
commercial aircraft on a scheduled route.
Influence of alcohol or of drugs not prescribed by a registered medical practitioner.
Dangerous sport activities such as mountaineering, diving, motor-racing, etc.
However, this list is non-exhaustive. Employees can refer to the policy contract for the full
list of exclusions under this policy.
Workmen Compensation Scheme Insurance Policy Detail
1. Introduction
This policy covers an employer in respect of his statutory liability under the Workmens
Compensation Act as well as at Common Law to his employees who are not covered by the
Social Security Organisation (SOCSO) as provided for under the Employees Social Security
Act 1969.
The Workmen Compensation Act together with any other amendment in the schedule of
the policy:
Workmen's Compensation Ordinance 1952 (Federation of Malaya)
Workmen's Compensation (Amendment) Ordinance 1956 (Federation of Malaya)
The Workmen's Compensation (Amendment) Act 1976
Modification of Laws (Workmen's Compensation) (Extension and Modification) Order,
1981
OR AT
However, the duration of cover is one year and Insured need to renew the policy annually.
This jurisdiction policy is subject to Malaysian Jurisdiction only.
3. Premium
The premium chargeable depends on the number of workmen / nature of occupation of the
employees insured and their estimated annual wages / salaries.
The premium charges are varies depending on various factors, the following are the main
criteria on determine the premium
RM ________________
: RM __________________
Rate Applicable
: RM __________________
Amount
Stamp duty
RM10.00
Goods & Services Tax (GST) will be imposed on the applicable portion of the premiums due
and payable upon GST implementation and where GST is applicable.
5. Importance of Products Disclosure (Terms and Conditions)
STATEMENT PURSUANT TO FINANCIAL SERVICES ACT 2013, Section 129, Schedule
9, Paragraph 5:
It is the duty of the customer to take reasonable care not to make a misrepresentation to the
licensed insurer when answering any question which the insurer may request that are relevant
to the decision of the insurer whether to accept the risk or not and the rates and terms to be
applied.
Change in Risk
Customer must inform the insurer or their agent in writing on any material changes during the
policy period so that the necessary amendments are endorsed into their policy.