Foreign Worker Compensation

INTRODUCTION    
 
Under Section 26(2) of the Amended Workmen’s Compensation Act 1952, it is mandatory for every employer to insure all foreign workers employed by him under an approved insurance scheme in respect of any liability that he may incur under the said Act.
 
Any employer who fails to insure the foreign workers under the said scheme shall be guilty of an offence and shall be liable, on conviction, to a fine not exceeding RM20,000.00 or to imprisonment for a term not exceeding 2 years or both.
 
Kurnia Insurans (Malaysia) Berhad has been appointed by the Ministry of Human Resources as one of the insurers to provide coverage for employment accidents to foreign workers. Employers may therefore insure all their foreign workers under the Insurance Scheme with Kurnia Insurans (Malaysia) Berhad to fulfill the requirements of the Act.

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SCOPE OF COVER AND BENEFITS

Section 1: Workmen’s Compensation This section covers the Insured’s foreign worker against personal injury by accident or disease arising out of or in the course of employment with the Insured.   Scope of cover Benefits Accidental death due to employment injury 60 months earnings or RM18,000.00 whichever is less  Additional payment of RM7,000 as provided under FWCS. Permanent Total Disablement 60 months earnings or RM23,000.00 whichever is less Permanent Partial Disablement A sum of money based on the capital sum of RM23,000 calculated in accordance with the First Schedule of the Workmen’s Compensation Act. Temporary Total / Partial Disablement A sum of money calculated in accordance with Section 8(e) of the Workmen’s Compensation Act. Hospitalisation and Medical Expenses Pays in accordance with the provisions of the Workmen’s Compensation Act (max. RM750) Occupational Disease as per 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.   Section 2: Repatriation Expenses This section will indemnify the Insured for the actual repatriation expenses incurred or RM4,800.00 whichever is the lesser, in the event the insured worker dies or suffers permanent total disablement.   Section 3: Personal Accident Insurance (Off-Work Hours) This section will pay to the Insured person or his legal representative for personal injury sustained in an accident, which occurs outside the working hours   Scope of cover Benefits Accidental Death (occurring within 12 months of the accident) Compensation sum of RM23,000 Permanent Total Disablement (occurring within 12 months of the accident) Maximum compensation sum of RM23,000 Permanent Partial Disablement A sum of money based on the capital sum of RM23,000 calculated in accordance with the First Schedule of the Workmen’s Compensation Act Temporary Disablement A sum of money calculated in accordance with Section 8(e) of the Workmen’s Compensation Act. Medical Expenses Pays in accordance to the provisions of the Workmen’s Compensation Act (max. RM750).

PREMIUM

The minimum annual premium is RM 72.00 (RM 67.00 + SPPA service fee RM5.00) per foreign worker  (Before RM10.00 Stamp Duty and 5% service tax, if applicable)   SPPA service fee is a fee charged for electronic link-up service for “Skim Pampasan Pekerja Asing (SPPA). 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.