Jabatan Tenaga Kerja Sabah

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Workmen's Compensation Claim

(1)

Workmen’s Compensation Act 1952.

An Act to provide for the payment of compensation benefits to a foreign worker who possesses valid employment document for injuries sustained due to accident which arises out of or in the course of employment or if death results from the accident, to the dependants.

(2)

Categories Of Workmen’s Compensation Claim.

(a)

Temporary Disability.

(b)

Permanent Disability.

(c)

Fatal

(3)

Who is covered under the Workmen’s Compensation Act?

Section 2(1) provides among others "...."workman"...Means any person who has, either before or after the commencement of this Act entered into or works under a contract of service or of apprenticeship with an employer, whether the contract is expressed or implied or is oral or in writing, whether the remuneration is calculated by time or by work done and whether by the day, week, month or any longer period....."

(4)

Work Process on Handling of Workmen’s Compensation Claim.

(a)

Temporary Disability.

(b)

Permanent Disability.

(c)

Fatal

(5)

Who is responsible to pay the compensation?

An employer shall be responsible to pay compensation for any industrial accident. Section 3 (1) provides:
"Employer includes the Government of each of the states...any local authority , any person or body of persons whether statutory or incorporated or not, the legal personal representatives of a deceased employer, and in relation to a person employed for the purpose of any game or recreation and engaged or paid through a club, the manager or members of the managing committe of the said club: provided that where the services of a workman are temporarily lent or let on hire to another person by the person with whom the workman has entered into a contract of service or apprenticeship, the latter shall,...continue to be the employer of the workman whilst he is working for that other person".
Under section 19 employer is called “Principle” and is also responsible to pay compensation if he appoints a contractor to carry out work entirely or partially on his behalf. Besides paying compensation, an employer is also responsible to pay for any medical expenses to the workman who met with an accident during his working hours – Section 4 (1)(a)

(6 )

Who will receive the compensation?

In cases of non-fatal accidents the workman is entitled to receive from his employer payment of compensation under the Act. In the case of fatal accidents the compensation will be payable to the dependants. Section 3(1) of the Act defines "dependant" as "any member of the family of a deceased workman who wholly or in part depended upon his earnings at the time of his death".

(7)

Notice of Accident Form and Medical Report.

Form

(8)

Reminder To Employers.

Effective 1st April, 1993, all foreign (immigrant) workers employed by an employer are protected under the Workmen’s Compensation Act 1952. Section 26 (1) of the Act requires every employer to insure himself and keep himself insured with a valid workmen’s compensation insurance policy which may be obtained from any of the panel of Insurance Companies appointed by the Government to undertake the implementation of the Workmen's Compensation Insurance Scheme established for this purpose. Employers who contravene the provisions of this Section commits an offence and if convicted for an offence shall be liable to a fine of RM20,000.00 or imprisonment for a term not exceeding two years or to both fine and imprisonment. The cost of obtaining such insurance policy shall be defrayed by the employer and shall not be deducted from the wages of a workman. Any deduction made by an employer for such purpose constitute an offence and if convicted for such offence, the employer will be liable to a fine of not more than RM5,000.00 or imprisonment for a term not exceeding one year or to both fine and imprisonment.

(9)

Penalties under Workmen’s Compensation Act 1952.

(a)	Failure to submit Notice of Accident - Section 13 of the Act. First Offence Second offence	Fine Fine	Rm 5,000 Rm 10,000
(b)	Failure to submit Report /Information (section 23)	Fine	Rm 5,000
(c)	Failure of the employer to insure and keep himself insured -Section 26(1) of the Act.	Fine Rm 20,000 OR	Imprisonment of a term not exceeding 2 years or to both fine and imprisonment
(d)	Deduction from wages of a workman to defray the cost of obtaining an insurance policy - Section 26(5)	Fine Rm 5,000 OR	Imprisonment for a term not exceeding one year or to both fine and imprisonment.

(10)

Appointed Insurance Panels

Appointed insurance panel under Foreign Workers' Compensation Scheme:

(1)

Allianz General Insurance Malaysia Berhad

(2)

Berjaya General Insurance Berhad

(3)

Kurnia Insurance (Malaysia) Berhad

(4)

Lonpac Insurance Berhad

(5)

Malaysia Assurance Alliance Berhad

(6).

Mayban General Assurance Berhad Malaysia

(7)

Malaysia National Insurance Berhad

(8)

Syarikat Takaful Malaysia Berhad

(9)

Takaful National Sdn Bhd

(10)

Tahan Insurance Malaysia Berhad

(11)

Jerneh Insurance Berhad

(12)

Mayban Takaful Berhad

(13)

Multi-Purpose Insurance Berhad

(14)

MUI Continental Insurance Berhad

(15)

QBE Insurance (M) Berhad

(16)

RHB Insurance Berhad

(17)

Royal & Sun Alliance Insurance Berhad

(18)

Takaful Ikhlas Sdn Bhd

(19)

The Pacific Insurance Berhad

(20)

Tokio Marine Insurans (M) Berhad

(21)

Uni. Asia General Insurance Berhad

(22)

AmAssurance Berhad

(23)

AXA Affin Assurance Berhad

(24)

Commerce Assurance Berhad

Any employer who takes insurance policy from insurance companies other than those listed above commits an offence under Workmen's Compensation Act 1952. Such policy should be terminated immediately and a new policy should be taken from any of the insurance companies appointed above.

(11)

Flow Chart on Handling of Workmen’s Compensation Claim.

(a)

Temporary Disability

(b)

Permanent Disability

(c)

Fatal