Foreign Workers In Malaysia – Compulsory Medical Insurance Coverage
In Klang for example, Malaysian citizens from all walks of life can seek medical treatment ranging from common colds, high blood pressure, diabetes, cholesterol ailments and they can even have their tooth extracted for a minimum fee of RM1.
The above medical services are provided at the Bukit Kuda government clinic. These services are also provided to the public at the Hospital Sultanah Tuanku Ampuan Rahimah, which is located at Jalan Langat, Klang.
While visiting the Bukit Kuda government clinic in North Klang, located next to the Hokkien Association for high blood pressure treatment once every 3 months, I only need to pay a sum of RM1, For those who would like to seek treatment from specialist doctors, they will have to pay a sum of RM5.
While at the clinic, I have seen foreign nationals seeking treatment therein. Although the health treatment and care is provided by our government to its people, I have always wondered are the health services provided by our clinics and hospitals extended to foreign workers as well.
At long last, the answer to my question was finally answered in an article entitled “Medical Must” which appeared in the Star newspaper dated 21st November 2010. In it, the government through the Minister of Health, Datuk Seri Liow Tiong Lai, was reported to have said, “foreign workers medical bills in public hospitals which to date totaled RM19 million, has in fact burdened the government tremendously”.
The above has come about as the government has incurred costs because some foreign workers, who sought treatment at public hospitals had left without setting their bills or were only able to make partial payments only.
As from 1st January 2011, the government has announced that all foreign workers employed in Malaysia except for domestic maids, must have medical insurance coverage under a government ruling.
Health Minister, Datuk Liow said each foreign worker must have medical insurance coverage with an annual premium of RM120. With the above proposal, it is hoped that the Malaysian government’s predicament regarding health services to foreign workers at government clinics and hospitals will hence forth cease.
Reiterating further, the Health Minister said, employers hiring foreign workers would have to, from henceforth, have to enclose a copy of medical insurance policy for their prospective employees when applying for a work permit. Whereas, existing foreign workers who are applying for a renewal of work permits, their employers would have to submit a copy of insurance policy too. The above new decision is part of the Health Ministry’s 6 Entry Points Projects or the EPP.
Now that the question regarding insurance policy for foreign workers has been settled, we now arrived at the question of who would go on to pay for the medical insurance premiums, employers or the workers? This is yet to be settled.
The Malaysian Employers Federation has voiced its protest regarding the insurance coverage being borne by the 1.5 million foreign workers in the construction services and the manufacturing sectors. The Federation asks, “Bills incurred at government hospitals are not that high. Why then should coverage be that expensive?”
The Federation has further suggested that insurance cover start from RM50,000 instead of RM100,000. With regards to the insurance coverage for foreign workers to be implemented, the Government will appoint a total of 31 insurance companies to provide insurance coverage to foreign workers.
Coverage will also be for illness suffered by foreign workers while working, including critical illnesses. It is my opinion that foreign workers will face not much problem regarding payment of premiums which is said to cost only RM120 per annum.
If foreign workers can afford the purchase of motorcycles and vehicles while they are working here in this country, there is very little reason them not being able to pay for insurance coverage.
If one were to visit gambling outlets such as Toto, Magnum and 4D, the presence of foreign workers investing in such activities clearly indicates they can very well afford to pay for the cost of medical insurance which after all is for their own good anyway.
It should be reminded that medical facilities provided by clinics and hospitals are solely intended for Malaysian public alone. Foreign workers, unfortunately cannot be expected to benefit from health care provided by the government.
Transfer of Insurance No Claim Bonus (NCB)
The answer to the above is unfortunately “No”. The benefit will not be accrued or provided to the new owner. It is therefore for the insurer only.
Other readers have written in to this blog to ask what happens when one makes a claim for an accident for instance. When one makes a claim for a damaged bumper for example, normally the repairs for the above mentioned item is usually done at an approved Persatuan Insurans Am Malaysia (PIAM) workshop that is approved by the insurers.
This means the owner of the car making the claim will then lose or forgo the N.C.B. benefits. The following year, the insurance premiums will be calculated at full rate.
There are also some who inquired of me, can the N.C.B. or N.C.D. be transferred to another vehicle? The answer is “Yes”, provided the insurer is the same person involved.
There are however some readers who pose this question to this blog. They ask, if a car is insured for example for RM100,000, how much will the insurance company reimburse the insurer in case a vehicle is stolen or lost?
In most instances, insurance companies will pay up to a tune of some 80 – 85% of the total amount insured. A vehicle insured for a sum of RM100,000 should therefore be able to receive an insurance claim of some RM80,000 – RM85,000 reimbursement.
However, if one is not satisfied with the amount offered, one then could very well engage a lawyer or solicitor to demand for a higher amount from the insurance company involved.
There have been cases whereby insurance companies have been reported to have paid mush higher claims pertaining to loss of a vehicle. Some have even paid a 100%. This article has been narrowed down to emphasizing such topics as N.C.B. or N.C.D. inter-changeable between cars which are owned by the same person.
In later articles, attention will be provided to passenger liability as well as the question or insuring the front windscreen, rear windscreen and all other glass items found in a car. The question of excess liability will also be raised and explained explicitly for the benefit of those who are not too well versed wit this clause.
So readers who are interested to know about the above mentioned topics, do keep in touch. Safe driving!
Vehicle Insurance Discount Rates In Malaysia
In order to purchase a vehicle’s road tax, owners of cars and motorcycles, it is compulsory for insurance coverage be obtained for their vehicles.
The above also goes for lorries, trailers and buses as well.
Under the Road Transport Act 1987, it is therefore correct for one to assume all vehicles on the road must have insurance coverage before a road tax can be issued. For those who are not too well versed with matters involving insurance, permit me t to explain that insurance coverage are basically of 2 types:
i) 1st party or comprehensive coverage for cars / vehicles.
ii) Third party coverage.
For motorcycles, the insurance coverage is slightly different. Unlike in previous years, where only a third party insurance is required, today, the authorities insist that motorcycles should ideally be covered by “All Riders’ Policy”.
Talking about insurance coverage for vehicles and motorcycles, it should be made known that 1st party policies are obviously more expensive. Whereas, 3rd party insurance being less expensive.
Today, there exists no problem for the purchase of 1st party coverage. However, the Malaysian motoring public has been facing tremendous problems when attempting to purchase 3rd party insurance coverage especially for cars and vehicles which are over 10 years old.
The authorities are currently in the process of discussing a new insurance company to be setup to cater for 3rd party insurance. Hopefully, the above problem can be settled as soon as possible to provide the least hassle to insurers.
The authorities have assured the public that a new insurance company to be called the TIPID Newco will be set up by the beginning of 2011. When talking about insurance coverage for cars, vehicles and motorcycles, mention should also be made of Non Claims Bonus (N.C.B.) or No Claims Discount (N.C.D.).
Each following year, insurance companies give discount to owners of vehicles or motorcycles. It acts as an incentive to motorists to drive carefully and be good road users. Those who are not involved in accidents are given certain discounts. This also provides drivers and riders with a lesser burden when paying premiums for insurance purchased.
Below, I have included a table of discounts given generally by insurance companies in Malaysia:
1st year – No discount given
2nd year – 25% discount
3rd year – 30% discount
4th year – 38.3% discount
5th year – 45% discount
6th year – 55% discount
However, insurers should remember that no claims are made or arises from your policies and the policy should be insured with the same company for a continuous period of 12 months in each of the following instances.
