CORPORATE RISK MANAGEMENT

(WORKERS COMPENSATION AND EMPLOYEE INJURIES)

DR NGUYEN THI PHUONG LAN
VIDTIYIA DEVANDRAN
RISHMIT KAUR A/P SOKTAR SINGH
NUR SALINA YUSOFF

1122702818
1131121693
1131121695

SIVAANANTHINE SUPPIAH

1122702123

SITI ATIQAH BINTI BADRUL SHAH

1121118081

NURUL DIYANA BINTI JOHAR

1111114246

OBJECTIVE
To

provide substantial protection against the

loss of income
To provide broad coverage of employees for
job related accidents and diseases
To provide sufficient medical care and
rehabilitation services to injured workers
To encourage firms to reduce job related
accidents and to develop effective safety
programs
To provide insurers an opportunity top earn
a fair profit
To provide workers compensation to
employees can insulate a business owner
from lawsuits arising from the injury.

OVERVIEW

WHAT IS WORKER'S COMPENSATION

AND EMPLOYEE INJURIES ?

Compensation for injury to an employee or worker

in the course of employment that is paid to the

worker or dependents

Workers' compensation is a "no-fault" system

9/17/16

The Worker's Compensation Act 1952

Provides for the compensation payment to an injured e
mployee or worker
contracting occupational disease.
This Act applies to foreign workers.
Whose earnings are not more than RM500 per month
All manual workers irrespective of the wage

9/17/16

WHO IS COVERED UNDER THE WORKMEN'S

COMPENSATION ACT 1952 ?

Local workers will be covered under the

Employees Social SecurityAct 1969.

Only foreign workers are covered

as non-employment injury vide Workmen's
Compensation
(Foreign
Worker's
Scheme)
(Insurance) Order 1993.

Categories of Workers Compensation Claim

Temporary Disability.
Permanent Disability.
Fatal

* Why we do need this insurance ?

* Permanent Total /Partial Disability Benefits
* Temporary Total/Partial Disability Benefits
- is the period of time frequently referred to as the "healing period"
- an injured employee may be entitled during the process of recovery when
the worker during a temporary period is NOT totally disabled

* Medical/Hospitalization Benefits
- the employer or its insurer promptly shall provide compensation to the cov
ered employee

* Wage Reimbursement Benefits

- required to reimburse the covered employee for lost wages due to time s
pent

* Vocational Rehabilitation Benefits

- providingtraininginaspecifictradewiththeaimofgainingemployment

9/17/16

How the premium is being cha

rged and calculated? Scope of
coverage and pricing policy.

 There

are a lot Insurance Companies in Malaysia and we

used to choose Zurich, Allianz, Kurnia,Lonpac and Social
security organization (SOCSO), for analyzing the workers
compensation insurance product.

Premium (the amount has set by government)

Foreign Worker Compensation(Table 2)
(Premium x 6% OF GST)+RM5.30+RM10 = xx
(RM 67 X 6% OF GST ) + RM5.30 +RM10 = xx

Base on Rate
Protection(Table 2)

Estimated

of

contribution

Social

Security

of the Premium is being calculated for chosen

insurance company and SOCSO

*Premium

Premium
On line services
Stamp Duty
Minimum Annual
Payment (per year)

Number of
wokers(estima
tion)
Total

Allianz

Kurnia

Lonpac

Zurich

RM 71.02

RM 71.02

RM 71.02

RM 71.02

RM 5.30

RM 5.30

RM 5.30

RM 5.30

RM10

RM10

RM10

RM10

RM86.32

RM86.32

RM86.32

RM86.32

10

RM172.64

RM 86.32

RM 431.60

RM 604.24

Table 1

*Rate of Contribution
RATE OF CONTRIBUTIONS

No.

Actual monthly wage of the

month

First Category
(Employment Injury Scheme and Invalidity Scheme)

Second Category
(Employment Injury
Scheme)

Employer's
Contribution

Employee's
Contribution

Total
Contribution

Contribution by
Employer only

1.

Wages up to RM30

40 cents

10 cents

50 cents

30 cents

2.

When wages exceed RM30 but

not RM50

70 cents

20 cents

90 cents

50 cents

When wages exceed RM50 but

not RM70

RM1.10

30 cents

RM1.40

80 cents

When wages exceed RM70 but

not RM100

RM1.50

40 cents

RM1.90

RM1.10

When wages exceed RM100 but

not RM140

RM2.10

60 cents

RM2.70

RM1.50

When wages exceed RM140 but

not RM200

RM2.95

85 cents

RM3.80

RM2.10

When wages exceed RM200 but

not RM300

RM4.35

RM1.25

RM5.60

RM3.10

3.
4.
5.
6.
7.

Table 2

*Scope of Coverage

Service
Provider/

SOCSO

ZURICH

90% of wages.

Death(work) :
RM25,000

ALLIANZ

LONPAC

KURNIA

Death or TPD:
RM23000

Death : 60
months earnings
or RM18,000.00

Service Offered

Death or Total
Permanent
Disablement

Minimum of
RM30.00/day
Maximum
RM88.50/day

Death(off-work) :
RM23000
TPD : RM23 000

Permanent
Partial
Disablement

NIL

RM23,000

Medical
Benefits

FREE

Covers up to
RM25,000

Temporary
Disablement

Dependants
Benefit

Funeral or
Repatriation
Expensese

Min payment/day
: RM30
Max
payment/day :
RM78.67
Minimum of
RM30.00/day
Maximum of
RM88.50 /day

RM1500

Death(work) :
RM25,000
Death(off-work) :
RM23000

Death on work :
Additional RM7k
paid by the
company.

RM23,000

RM23,000

RM23,000

RM23,000

RM750.00

RM23,000

NIL

RM 750.00

a sum of money
up to RM23,000
is given divided
monthly until the
worker is fully
recovered.

RM23,000

RM23,000 or 6
months salary,
whichever is
lower.

NIL

NIL

NIL

Only up to RM
4,800.00

shall be the
actual expenses
incurred or
9/17/16
RM4,800
whichever is the
lesser

Only up to RM
4,800.00

TPD : 60 months
earnings or
RM23,000.00

shall be the
actual expenses
incurred or
RM4,800
whichever is the
lesser(either

Who are the service providers and s

ervices offered? Compare their price
s (premium) and difference in policy
.

There

are currently 27 panel insurance provider of foreign

workers and 1 service provider
for local worker who were
appointed by Ministry of Human Resources .(Table 3)
Different policy
Premium
Scope of coverage
Act

Servicer provider
social security protection
medical and cash benefits, provision of artificial aids and
rehabilitation to employees to reduce the sufferings and to
provide financial guarantees and protection to the family
Claim centers
Making an insurance claim may be a hassle for some
people.

Foreign workers compensation and

Local workers compensation and

employee injuries
1. Allianz General Insurance Malaysia Berhad
2. AmG Insurance Berhad

employee injuries
1.

Perkeso (Agency under the Ministry of Human

Resources)

3. AXA Affin General Insurance Berhad

4. Berjaya Sompo Insurance Berhad
5. ACE Jerneh Insurance Berhad
6. ING Insurance Bhd
7. Zurich Insurance Malaysia Berhad
8. Kurnia Insurans (Malaysia) Berhad
9. Lonpac Insurance Berhad
10. ETIQA Insurance Berhad
11. ETIQA Takaful Berhad
12. MAA Takaful Berhad
13. Tune Insurance
14. MultiPurpose Insurance Berhad
15. MCIS Zurich Insurance Berhad
16. Overseas Assurance Corporation (M) Bhd.
17. The Pacific Insurance Berhad.
18. Progressive Insurance Berhad.
19. QBE Insurance (M) Berhad.
20. RHB Insurance Berhad.
21. Syarikat Takaful Malaysia Berhad.
22. Takaful Ikhlas Sdn Bhd.
23. Tokio Marine Insurans (M) Berhad.
24. Uni. Asia General Insurance Berhad.
25. Prudential BSN Takaful Bhd.
26. Hong Leong MSIG Takaful Bhd
27. MSIG Insurance (Malaysia) Berhad

Table 3

Foreign Workers Compensation Scheme (FWCS)

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).
The different is the total premium payment(Table 4)
because they are dependent on the number of foreign
worker employed by the employer.
Example of company insurance

Allianz Malaysia Berhad

Kurnia Insurans (Malaysia) Berhad
Lonpac Insurance Bhd
Zurich Insurance Malaysia Berhad

*Total Premium
Premium
On line services
Stamp Duty
Minimum Annual
Payment (per year)

Number of
wokers(estima
tion)
Total

Allianz

Kurnia

Lonpac

Zurich

RM 71.02

RM 71.02

RM 71.02

RM 71.02

RM 5.30

RM 5.30

RM 5.30

RM 5.30

RM10

RM10

RM10

RM10

RM86.32

RM86.32

RM86.32

RM86.32

10

RM172.64

RM 86.32

RM 431.60

RM 604.24

Table 4

Social Security Organization (SOCSO)

The

rates are based on the total sum of the monthly

wages received by an employee. Contribution begins on
the first month when the employee commences
employment.
Types and Categories of Contribution

i.

First
Category
(Employment
Injury
and
Invalidity Schemes)
The rates of contribution under this category
comprise of 1.75% employers share and 0.5%
employees monthly wages.

ii. Second Category(Employment Injury Scheme)

The rate of contribution under this category is only
1.25% of the employees monthly wages solely borne
by the employer.
Example of rate Contribution

RATE OF CONTRIBUTIONS

No.

Actual monthly wage of the

month

First Category
(Employment Injury Scheme and Invalidity Scheme)

Second Category
(Employment Injury
Scheme)

Employer's
Contribution

Employee's
Contribution

Total
Contribution

Contribution by
Employer only

1.

Wages up to RM30

40 cents

10 cents

50 cents

30 cents

2.

When wages exceed RM30 but

not RM50

70 cents

20 cents

90 cents

50 cents

When wages exceed RM50 but

not RM70

RM1.10

30 cents

RM1.40

80 cents

When wages exceed RM70 but

not RM100

RM1.50

40 cents

RM1.90

RM1.10

When wages exceed RM100 but

not RM140

RM2.10

60 cents

RM2.70

RM1.50

When wages exceed RM140 but

not RM200

RM2.95

85 cents

RM3.80

RM2.10

When wages exceed RM200 but

not RM300

RM4.35

RM1.25

RM5.60

RM3.10

3.
4.
5.
6.
7.

Table 5

Different in policy
Different terms employment and benefits between local and foreign

34%
66%

Source from Report Malaysian Employers Federation

About 66 percent of the respondent companies indicates that there is no

different terms employment and benefits between local and foreign
Even between panel insurance company there is not too much different
in policy in term of
Scope of coverage
9/17/16
Premium
Benefit

The percentage of users subscri

bing to this insurance policy in
Malaysia for 2014 data.

Statistics Of Foreign Workers Com

pensation & Top 10s in Malaysia
until 2013
Direct Insurer
Kurnia Insurans(Malaysia) Bhd
Allianz Life Insurance Malaysia Bhd
Lonpac Insurance Malaysia Bhd
Zurich Insurance Malaysia Bhd

Sources from Ministry of Human

Resources
9/17/16

Covered and Uncovered Under Workers Compensation Act in 2014

Covered Insurance

Uncover Insurance

29%

71%

The pie chart show that 71 percent foreign worker covered

under Workers compensation and the balance of 29 percent
is not covered
9/17/16

The difference in the amount paid

by the direct insurer for each
company in Malaysia for 2013

*Thank you

9/17/16