PETALING JAYA: The Social Security Organisation (Perkeso) Lindung 24 scheme is structurally positive for the Malaysian insurance sector’s broader protection ecosystem, and the disruption is manageable for private insurers in addressing the domestic protection gap, says CIMB Research.
The research house noted a recent meeting with Perkeso deputy chief executive officer Edmund Cheong provided greater clarity on the rationale and structure of Perkeso’s proposed 24/7 social insurance protection for workers, implemented on June 1, which covers eligible employees, including local and foreign workers.
CIMB Research sees the Lindung 24 scheme as broadening Malaysia’s basic protection floor, rather than displacing private medical and life insurance – although there could eventually be some rationalisation of overlapping personal accident (PA) and employer-provided accident benefits.
Unlike Perkeso’s current mandatory protection, the Employment Injury Scheme, which covers accidents occurring “in the course of employment”, Lindung 24 extends accident protection beyond workplace-related accidents and working hours, extending the social-security architecture to weekends, lunch breaks, commuting detours, domestic travel and lifestyle activities such as hiking, cycling, and sports.
