Types of Foreign Worker Insurance in Malaysia
Since the introduction of the Foreign Worker Hospitalisation and Surgical Insurance Scheme by the Malaysian government on 2011, insurance for foreign workers are compulsory. It is of most importance that employers have their workers insured for everyone’s peace of mind. South Gate has prepared this guide for types of foreign worker insurance in Malaysia to help ease the process.
There are several types of foreign worker insurance available, which are:
What is the Foreign Worker Insurance Guarantee (FWIG)?
The FWIG is a guarantee from the employer that is compulsory as asked by the Immigration Department. It is a security deposit for foreign worker employment that is under Regulation 21 of the Immigration Regulations.
The period of being covered is eighteen (18) months as set by the Immigration Department. Upon renewal of the foreign worker permit, a new FWIG is needed. Whole payable premium differs depending on the foreign worker’s nationality and the provider’s underwriting requirements.
The Immigration Department requires this insurance as a guarantee to cover any repatriation expenses in case of the foreign worker being required to be sent back to their country of origin during their stay in Malaysia if demanded by authorities. This situation could occur due to different reasons such as:
What is the Foreign Worker Hospitalisation & Surgical Scheme (SPIKPA/FWHS/SKHPPA)?
There is a mandatory requirement for every foreign worker in Malaysia to purchase a RM120 premium per year of Foreign Workers Hospitalisation & Surgical Scheme with an annual limited RM20,000 medical coverage. This is subject to 6% SST and RM10 for stamp duty.
Some benefits that can be gained from the insurance policy include coverage of:
Telephone Access Care
If you are staying somewhere away from urban areas, it might be harder to get access for better medical facilities. The Malaysian government had set up a teleconsultation system for better accessibility in this regard for both citizens and expats alike that may be located in more rural areas in need of medical services. This technology is also utilised for patient records storage and sharing for the benefit of both doctors and patients. These teleconsultations also occur between isolated doctors and doctors in main facilities.
What is the Foreign Workers Compensation Scheme (FWCS)?
It is stated under section 26 (2) of the Workmen’s Compensation Act 1952 that every company must insure all their foreign workers under the Foreign Workers Compensation Scheme (FWCS). The scheme provides foreign workers benefits for repatriation and personal accidents both during and outside of work hours.
There is a mandatory requirement for every foreign worker in Malaysia to purchase a RM72 premium per year FWCS Scheme with an annual limited RM25,000 annual coverage. This is subject to 6% SST and RM10 for stamp duty.
Some benefits that can be gained from the insurance policy include coverage of:
What is the Maids Insurance/Domestic Help Insurance (MAIDS)?
All domestic helper or maid foreign workers with maid work permits are required to purchase a MAIDS insurance that typically comes in 2 options for the plan:
Some benefits that can be gained from the insurance policy include coverage of:
Looking for an insurance provider or assistance in finding one? South Gate has you covered, contact us for further help.
There are several types of foreign worker insurance available, which are:
- Foreign Worker Insurance Guarantee (FWIG)
- Foreign Worker Compensation Scheme (FWCS)
- Foreign Worker Hospitalisation and Surgical Scheme (SPIKPA/FWHS/SKHPPA)
- Foreign Maid Insurance / Domestic Help Insurance (MAID)
- Among these, the first three (FWIG, FWCS, FWHS) are compulsory for general workers for visa calling, renewal permits and rehiring programmes. The final insurance (MAID) is only compulsory for domestic helpers/maids.
What is the Foreign Worker Insurance Guarantee (FWIG)?
The FWIG is a guarantee from the employer that is compulsory as asked by the Immigration Department. It is a security deposit for foreign worker employment that is under Regulation 21 of the Immigration Regulations.
The period of being covered is eighteen (18) months as set by the Immigration Department. Upon renewal of the foreign worker permit, a new FWIG is needed. Whole payable premium differs depending on the foreign worker’s nationality and the provider’s underwriting requirements.
The Immigration Department requires this insurance as a guarantee to cover any repatriation expenses in case of the foreign worker being required to be sent back to their country of origin during their stay in Malaysia if demanded by authorities. This situation could occur due to different reasons such as:
- Breach of the Immigration Act
- Guilty of illegal activities
- Company liquidation that cannot cover employee return
What is the Foreign Worker Hospitalisation & Surgical Scheme (SPIKPA/FWHS/SKHPPA)?
There is a mandatory requirement for every foreign worker in Malaysia to purchase a RM120 premium per year of Foreign Workers Hospitalisation & Surgical Scheme with an annual limited RM20,000 medical coverage. This is subject to 6% SST and RM10 for stamp duty.
Some benefits that can be gained from the insurance policy include coverage of:
- Daily hospital room boarding for up to a maximum of 30 days
- Intensive care unit (ICU) for up to a maximum of 15 days
- Operating theatre fees
- Surgical fees
- Anaesthetic fees
- In-hospital physician visits for up to a maximum of 30 days
- In-hospital specialist consultation visits for up to a maximum of 30 days
- Ambulance fees
- Medical report fees
- The medical coverage is capped at the maximum annual limit of RM20,000.
Telephone Access Care
If you are staying somewhere away from urban areas, it might be harder to get access for better medical facilities. The Malaysian government had set up a teleconsultation system for better accessibility in this regard for both citizens and expats alike that may be located in more rural areas in need of medical services. This technology is also utilised for patient records storage and sharing for the benefit of both doctors and patients. These teleconsultations also occur between isolated doctors and doctors in main facilities.
What is the Foreign Workers Compensation Scheme (FWCS)?
It is stated under section 26 (2) of the Workmen’s Compensation Act 1952 that every company must insure all their foreign workers under the Foreign Workers Compensation Scheme (FWCS). The scheme provides foreign workers benefits for repatriation and personal accidents both during and outside of work hours.
There is a mandatory requirement for every foreign worker in Malaysia to purchase a RM72 premium per year FWCS Scheme with an annual limited RM25,000 annual coverage. This is subject to 6% SST and RM10 for stamp duty.
Some benefits that can be gained from the insurance policy include coverage of:
- Accidental death with RM25,000 during work hours or RM23,000 off work hours
- Permanent disablement coverage for up to RM23,000 during work hours or RM23,000 off work hours
- Coverage for temporary income loss from temporary disablement
- Medical coverage of up to RM750
- Repatriation fees due to death or permanent disablement of RM4,800
What is the Maids Insurance/Domestic Help Insurance (MAIDS)?
All domestic helper or maid foreign workers with maid work permits are required to purchase a MAIDS insurance that typically comes in 2 options for the plan:
- RM50 premium per year
- RM70 premium for 2 years
- These plans are subject to 6% SST and RM10 for stamp duty, with an annual coverage of RM30,000.
Some benefits that can be gained from the insurance policy include coverage of:
- Death or permanent disablement coverage of RM30,000
- Medical expenses of RM750
- Ambulance fee coverage of RM100
- Repatriation fees of up to RM5,000
- Medical coverage of up to RM5,000
- Weekly benefits of RM100 per week for a maximum of 10 weeks
- Third party liability coverage of RM5,000
- These are the four types of foreign worker insurance that are mandatory for companies to cover for their foreign employees.
Looking for an insurance provider or assistance in finding one? South Gate has you covered, contact us for further help.
21 Feb 2024
