Job Seeker Handbook

Malaysian Labour Law : Regulation of Employment

3. WORKMEN'S COMPENSATION

3.4 Foreign Worker Insured by Employer

  • 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.

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