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HOW DOES AN EMPLOYER INSURED A FOREIGN WORKER ?

Under the Foreign Worker's Scheme, an employer of foreign workers is responsible to pay an insurance premium of RM86 per year per worker.

An employer is not allowed to deduct the earnings of a worker for the payment of insurance premium. An employer found guilty of such action, shall be liable, on conviction to a fine of RM5,000 or to imprisonment for a 1 year term or to both.

There are 11 insurance companies being selected as insurer to issue insurance policy under the Foreign Worker's Scheme.

Employer can purchase such insurance from any of the insurance companies listed :

• Amanah General Insurance Berhad
• Arab Malaysian Assurance Berhad
• London & Pacific Insurance Company Berhad
• Mayban Assurance Berhad
• MNI Takaful Sdn. Bhd.
• Malaysia British Assurance Berhad
• Malaysian Assurance Alliance Berhad
• Malaysia National Insurance Berhad
• The Pacific Insurance Berhad
• Syarikat Takaful

An employer found guilty of not buying an insurance for workmen's compensation, shall be liable, on conviction to fine of RM20,000 or imprisonment for a term of 2 years or to both.

WHAT SHOULD BE DONE IF A WORKER IS INVOLVED IN AN ACCIDENT ?

Each worker involved in an accident must inform the employer within 7 days from the date of such accident except in the even of fatal accident.

An employer must notify the nearest Department of Labour from the place of accident in writing. Such notice must be submitted within 10 days from the date of accident.

An employer shall ensure that all information is with full details and supporting documents are enclosed such as medical certificate or death certificate.

An employer must ensure that compensation settlement as determined by the Department of Labour are paid direct to the injured worker by depositing such payment to the Department of Labour as directed.

However, compensation settlement cannot be paid direct to the wife, children or dependants, but to be deposited to the Department of Labour concerned.

Failure to notify the Department of Labour in the event of an accident is an offence and the employer shall be liable, on conviction to a fine of RM5,000 for the first offence and RM10,000 for the second offence.