Compensation In Malaysia

Compensation for occupational injuries and diseases in Malaysia

In Malaysia, the worker in the private sectors who earns less than RM3000 a month are protected by the Employee's Social Security Act 1969 (ESSA 1969). They are covered under two insurance schemes; Employees' Injury Scheme and Invalidity Pension Scheme. To qualify for compensation from the Employees' Injury Scheme the workers must have been injured while commuting to and from work, commuting in the course of work, and while working, workers who develop occupational disease is also covered under this scheme. There is no age limit to this scheme, the insurance scheme will continue while the person is still working and contributing to the scheme. The list of compasable occupational diseases are listed in Fifth Schedule of the ESSA 1969 The second scheme is the Invalidity Pension Scheme where the workers is qualify for invalidity pension if he suffers from chronic diseases that makes him unable to earn more than 1/3 of his usual wages. This scheme only covers workers up to 55 years old. Other than the two schemes under ESSA 1969, individual who are protected under other insurance scheme can also apply for compensation. In this case the amount and quantum of payment will depends on the agreement between the insurance company and the insured party.

Quantum of Compensation

The amount of compensation to be paid to the insured person who was involved in an accident or from occupational disease depends on the degree of impairment. If there is no impairment sustained as a result of the occupational accident or disease then compensation would not be paid. However the medical and surgical cost for the treatment would be borne by the Social Security Organisation. The insurer needs to consult the Social Security Organisation on their entitlement for the medical and surgical treatment. For the "Employees Injury Scheme" under the ESSA the quantum is given in Second Scheduleof the ESSA. The Social Security Organisation have come up with the "Guidelines on Impairment and Disability Assessment of Traumatic Injuries, Occupational Diseases and Invalidity" since the Second Schedule only contained a limited list of impairment. The main purpose of the guideline is to be used as a guide for evaluating medical issues, diseases and the estimation of invalidity especially on issues that are not stated in the Second Schedule of ESSA. The amount to be paid depends on the assessment by independent medical assessor appointed under the ESSA. By Universiti Malaya This article has been connected with this link http://spm.um.edu.my/oeh/compensation/