Understanding Workmen’s Compensation Insurance
Workmen’s Compensation Insurance provides coverage for employers against their statutory liabilities under the Workmen’s Compensation Law as well as under Common Law. This policy is crucial for employees who are generally not covered by SOCSO (Social Security Organization in Malaysia).
Why Employers Need Workmen’s Compensation Insurance?
Employers can be held liable under Common Law for various reasons, including:
- Personal Negligence: Failure to take necessary precautions to protect employees.
- Failure to Provide a Safe Workplace: Ensuring that the working environment is safe and free from hazards.
- Failure to Recruit Competent Staff: Hiring qualified personnel who can perform their duties safely.
- Failure to Maintain Proper Machinery: Keeping equipment in good working condition to prevent accidents.
Contractual Requirements
Often, contracts, particularly for specific projects, mandate the inclusion of Workmen’s Compensation Insurance. This requirement ensures that employers are prepared for potential liabilities that may arise during the course of the project.
Limitations of SOCSO and Basic Workmen’s Compensation Insurance
While SOCSO and standard Workmen’s Compensation Insurance provide basic legal coverage, they might not be sufficient for all situations. These policies only meet the minimum legal and contractual requirements, leaving gaps in coverage that could expose employers to significant financial risks.
Enhanced Coverage Options
If you need more comprehensive protection than what SOCSO or basic Workmen’s Compensation Insurance offers, consider upgrading your policy. Enhanced coverage can provide broader protection against various risks and liabilities that standard policies may not cover.
Explore your insurance options and receive competitive quotations from multiple insurers by contacting our team. As a registered financial adviser in Malaysia, we collaborate with a wide range of trusted insurance companies. Our expertise allows us to craft the ideal employee benefit insurance solution tailored to your specific needs.
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Whether you need a quick quote for a simple project or comprehensive advice for managing multiple quotations, our licensed team is here to help. Don’t miss the opportunity to secure the best coverage—reach out today!
