Lindung 24 Jam an investment in social protection

STARTING this month, employees nationwide will notice slightly higher amounts in their Social Security Organisation (Perkeso) deductions following the implementation of the Non-Employment Injury Scheme, better known as Lindung 24 Jam.

Unsurprisingly, many will be unhappy, as nobody enjoys taking home less pay at the end of the month. But beyond this immediate reaction is a broader question: Is this merely another mandatory deduction? Or is it a necessary investment in Malaysia’s social protection system?

Under Lindung 24 Jam, employees receive protection around the clock, including for accidents happening outside working hours that are unrelated to their employment. These include accidents at home, sports and recreational injuries and road crashes.

While illnesses such as fever, diabetes and hypertension are excluded, the scheme significantly expands protection beyond Perkeso’s conventional scope.

One of the strongest arguments in favour of Lindung 24 Jam is accessibility. Unlike private insurance policies, there is no medical examination, no premium loading based on health conditions, and no exclusion for pre-existing illnesses at the point of entry.

For lower-income workers and employees whose employers provide little or no medical benefits, the scheme offers a layer of protection that may otherwise be unaffordable.

The reality is that many Malaysians, particularly younger workers, do not maintain sufficient emergency funds. A serious accident can wipe out years of savings and affect one’s ability to earn an income. In this context, the government’s decision to mandate participation can be seen as a form of social safety net.

That said, legitimate concerns remain. Employees who already possess comprehensive medical

cards and personal accident insurance may feel they are paying for overlapping protection. The mandatory nature of the scheme also means there is no option to opt out regardless of one’s personal financial planning.

Questions also remain about claim procedures and public awareness. Many Malaysians are unfamiliar with Perkeso’s benefits and processes. If claim procedures become cumbersome or insufficiently publicised, the practical value of the scheme may fall short of expectations.

There are also concerns about lower coverage limits and the absence of dedicated agents to assist with claims.

WALLACE KEW JIARONG

Petaling Jaya