New Health Insurance Scheme for Foreign Workers in Malaysia

Implementation of the Foreign Workers Health Insurance Protection Scheme (Spikpa), to be enforced next month, is far better than the current scheme because of its comprehensive coverage for foreign workers, say officials in Malaysia.

NOTE: Use of the word “scheme” does NOT have a negative connotation when used in remarks about workers compensation in other countries; non-U.S. countries commonly refer to their workers comp systems as “schemes.”

According to the Malaysian National News Agency Bernama.com, Health Minister Datuk Seri Liow Tiong Lai said the current Foreign Workers Compensation Scheme (SPPA) emphasized compensation due to illness, injury or death due to accident while at work only.

“Through Spikpa, foreign workers are eligible for medical protection of up to RM10,000 and are protected against all illnesses, except a few normal illnesses which are normally not covered by any health insurance policy, compared with SPPA which only provides medical protection of RM750 only,” he said in a statement.

He said Spikpa would not only overcome errors in unpaid bills at government hospitals, but it also avoids having foreign workers or their employers paying high hospital bills.

“The government only made it compulsory for employers of estate workers and domestic maids to pay this health insurance premium,” he added.

Liow hoped that implementation of Skikpa would realize the government’s aspiration to enhance the standard of health of foreign workers in the country.

Author Robert Elliott, executive vice president, Amaxx Risks Solutions, Inc. has worked successfully for 20 years with many industries to reduce Workers Compensation costs, including airlines, healthcare, printing/publishing, pharmaceuticals, retail, hospitality and manufacturing. Contact: [email protected] or 860-553-6604.