No overlap in the different types of coverage, say groups

PETALING JAYA: There is no overlap in insurance coverage under the Social Security Organisation’s (Socso) new Invalidity Scheme and the Foreign Workers Hospitalisation and Surgical Scheme (FWHS), says the Malaysian Employers Federation (MEF).

FWHS covers hospitalisation up to RM10,000, with the annual premium at RM120 per foreign worker, it said.

MEF president Datuk Dr Syed Hussain Syed Husman said the mandatory hospitalisation insurance does not overlap with coverage under Socso because they are different.

“The Sosco coverage is for employment-related matters, whereas the FWHS covers general hospitalisation costs.

“FWHS is still required to ensure that foreign workers are adequately covered for their other hospitalisation needs,” he said, adding that claiming from Sosco will not normally bar an insured person from claiming from another insurance.

The General Insurance Association of Malaysia (Piam) also said that hospitalisation and medical insurance is a different type of insurance compared with the Socso insurance.

The former is an indemnity-based cover, where the insurer would reimburse the exact sum incurred. The latter is a non-indemnity cover, where insured persons can claim against other insurances they have purchased, subject to the terms and conditions of the different policies.

“For hospitalisation insurance, there will be no overlap issue as the medical expenses are on a reimbursement basis,” it added.

However, Piam said specific insurers should be consulted as their terms may vary.

Separately, it noted that employers must also have the Foreign Workers Insurance Guarantee.

In the event a foreign worker is to be repatriated in the course of their stay in Malaysia, the insurance pays the Immigration director-general up to a maximum aggregate sum of the guaranteed value.

“This guarantee is required by the Immigration Department from an employer under Regulation 21 of the Immigration Regulations,” said Piam.