Insurance covers abscondment, hospitalisation
KUALA LUMPUR: Protection for domestic workers and their employers are set to receive a boost with the launch of a new insurance scheme with coverage spanning abscondment, hospitalisation and surgical treatment, among its benefits.
Launched by the Association of Employment Agencies Malaysia (Papa), the scheme is priced at about RM200 annually and is valid for a period of 12 months, before renewal is required.
Under the scheme, cases of abscondment within the insured period offers compensation of RM5,000 to employers; up to RM10,000 for hospital and surgical coverage in both private and government hospitals alongside medical coverage of up to RM2,000 among others.
Currently, the scheme can only be purchased by Papa members for their domestic workers.
Papa has about 100 active members nationwide.
“We are highly encouraging our members to take up this scheme. Interested employers can also speak to their agencies to arrange for the coverage.
“This also applies to existing domestic workers already in Malaysia,” said Papa president Datuk Foo Yong Hooi at the launch here yesterday.
He explained that the initiative was developed in response to a structural gap in the current domestic worker recruitment system, where the guarantee period typically ranges from three to six months, depending on arrangements with foreign recruitment partners.
“Once this period expires, employers are often left fully exposed to financial risk, despite the long-term nature of the employment relationship.
“Domestic employment involves human lives and livelihoods. The objective of this insurance is not to commercialise risk but provide a fair and balanced protective mechanism for both employers and domestic workers,” he said.
Foo added that Papa has also observed real-life situations where otherwise capable domestic workers were later diagnosed with medical conditions not detectable during pre-employment medical screenings.
“Here, employers may face unexpected financial pressure, particularly when treatment costs are high, and in some instances, domestic workers themselves may request to return to their home country.
“This causes both parties to be affected where the insurance is designed to bridge that gap while providing a more balanced protection framework,” he said.
The scheme is in partnership with Gmat Sdn Bhd and implemented by Allianz General Insurance Company (Malaysia) Bhd.
Gmat chief executive officer M. Marimuthu said the age limit for the insured coverage ranges from 18 to 65 years old.
He said the insurance scheme is already available for purchase online among Papa members, where an affiliate code will be given.
“The ability to purchase this product online is the first-of-its kind in Malaysia. We have worked closely with Papa and negotiated with the insurer for this product as well,” he said.
He also said the coverage only applies to incidents within Malaysia.
“Reimbursement will be towards the employment agency as well,” he added.
For more details on the scheme, the public can access gmat.com.my.
