| Under the Workmen’s Compensation
Ordinance 1952, employers are obligated
to insure employees who are defined
as workmen under the Workmen’s
Compensation Insurance Policy. Today,
that is no longer necessary if the employees
are member of SOCSO.
Malaysian workers earning RM2, 000
and below must be insured under SOCSO.
In practice however, particularly
in contract works, the principal,
whether the Government of Malaysia
or other parties, requires the Contractor
to affect a Workmen’s Compensation
Policy to cover their workers. The
policy is taken up as a benefit policy.
In the event of an accident of the
worker in the course of employment,
the worker can make a claim under
SOCSO as well as under the Workmen’s
Compensation policy. All employees
insured under SOCSO are debarred from
suing the Employer under the Common
Law. The employee however is not prohibited
from suing another fellow employee
under Common Law. For this reason,
the Workmen’s Compensation Policy
includes common law to cover the liability
of employee to the fellow employees.
A clause called “Employee to
Employee Clause” is included
into the policy for this purpose.
| |
SCOPE
OF COVER |
The policy provides cover
against injury or disease arising
out of and in the course of
employment.
Compensation is payable according
to the Workmen’s Compensation.
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