As an employer, you naturally want to ensure the well-being of your domestic worker while also protecting yourself from unexpected liabilities.

At Pinkcollar, we understand that navigating the various insurance coverages can be overwhelming, so we’re here to break it down for you. In this guide, we’ll walk you through the key insurance plans we secure for your domestic worker, giving you peace of mind that both you and your worker are well-protected.

By the end of this post, you’ll have a clearer understanding of what each policy covers, what it doesn’t, and how these coverages fit into your overall responsibility as an employer.

Overview The Zurich Domestic Maid Insurance Scheme is a mandatory insurance plan required by the Malaysian government and foreign embassies. This coverage is designed to protect both the worker and employer from liabilities arising from accidents, medical expenses, or even the unfortunate event of your domestic worker’s death while in your employment.

Coverage Period The policy can be obtained for two years, making it renewable every two years, typically alongside the renewal of the employment contract.

Scope of Coverage:

• Section 1: Personal Accident
  • Accidental Death: RM 25,000
  • Accidental Permanent Disablement: RM 25,000
  • Accidental Medical Expenses: RM 750 (with RM 50 excess per claim)
• Section 2: Repatriation Expenses: RM 5,000 for transportation of the worker’s remains to their home country in case of death.
• Section 3: Hospital and Surgical Expenses: RM 3,000 per event, covering medically necessary treatments following a bodily injury or sickness requiring hospitalisation. This includes prescribed drugs, diagnostic equipment, and subsequent outpatient treatments directly related to the same injury or sickness. Exclusions apply for dental treatment unrelated to accidents and preventive measures.
• Section 4: Weekly Benefit: RM 120 per week for up to 15 weeks during temporary total disablement due to an accident or sickness that requires hospitalisation or home recuperation as prescribed by a doctor.
• Section 5: Vicarious Liability: RM 2,000 against claims arising from the worker’s actions during employment.

For more details, please visit the Zurich Domestic Maid Insurance Scheme page.

Overview The Zurich SKHPPA is designed to cover hospitalisation and surgical charges incurred by the foreign worker in the event of hospital admission to a non-corporatised Malaysian Government Hospital due to an accident or illness (excluding pre-existing illnesses).

While not required by law for domestic workers, we believe this coverage is crucial for mitigating your risks as an employer. That’s why Pinkcollar proactively includes it in our hiring service packages, ensuring you benefit from an extra layer of protection and peace of mind.

Coverage Period This insurance is renewable on a yearly basis as the coverage period is tied to the worker’s Malaysian work permit, and typically renewed alongside the annual work permit renewal.

Scope of Coverage:

• Daily Hospital & Room Board: Up to RM 160 per day, for a maximum of 30 days (RM 4,800).
• Intensive Care Unit (ICU): Covered up to 15 days.
• Hospital Supplies and Services: As charged.
• Operating Theatre: As charged.
• Surgical Fees (Excluding Organ Transplantation): As charged.
• Anaesthetist Fees: As charged.
• In-Hospital Physician Visits: Up to 30 days.
• In-Hospital Specialist Consultation Visits: Up to 30 days.
• Ambulance Fees / Medical Report Fees: As charged.

Maximum Overall Annual Limit: RM 20,000.00 per insured person, covering all the above items.

Important Note: This insurance only covers expenses incurred at non-corporatised Malaysian Government Hospitals. If your domestic worker requires treatment at a private or corporatised hospital, those costs will not be covered under this plan.

For more details, please visit the Zurich SKHPPA page.

Overview The SOCSO Employment Injury Scheme provides protection against workplace accidents and occupational diseases.

This coverage is mandatory for all employers in Malaysia, including those employing foreign domestic workers, as per the Employees’ Social Security Act 1969 (Act 4). SOCSO ensures that your domestic worker is financially protected in case of work-related incidents.

Coverage Period The worker is covered by SOCSO as long as the monthly contributions are made via the SOCSO portal, alongside the monthly salary payments.

Scope of Coverage:

• Medical Benefits: Free treatment at SOCSO panel clinics or government hospitals.
• Temporary Disablement Benefit: Compensation of up to 90% of wages for temporary disability.
• Permanent Disablement Benefit: Up to 90% of wages depending on the severity of disability.
• Dependants’ Benefits: Continuous financial support for dependents if the worker dies due to a work-related accident.
• Funeral Benefit: RM 2,000 for funeral expenses.
• Rehabilitation and Allowances: Coverage for vocational training and allowances in case of severe disability.

For more details, please visit the SOCSO Employment Injury Scheme page.

Both the Indonesian and Embassy employment contracts include a clause for termination due to illness.

This clause is designed to protect both the employer and the worker, ensuring that ongoing care is sustainable and reasonable.

It acts as an ‘exit strategy’ for employers, acknowledging that while the contract typically obligates employers to cover all medical and dental costs during employment, there is a provision for termination if the worker is consistently unable to perform her duties due to illness.

Q: What are the key differences between SKHPPA and DMIS? A: Here are a few key differences:

• Scope of Coverage: DMIS provides broader coverage, including personal accidents, hospitalisation, repatriation, and liability. SKHPPA focuses specifically on surgical and hospitalisation expenses for unforeseen medical conditions.
• Coverage Limits: DMIS covers up to RM 3,000 for hospital and surgical expenses, while SKHPPA offers up to RM 20,000 annually.
• Exclusions: Both DMIS and SKHPPA exclude pre-existing conditions, but SKHPPA offers a waiver for this exclusion if the worker passes the FOMEMA medical examination within 30 days of arrival in Malaysia.

Q: How does SOCSO coverage benefit my domestic worker? A: SOCSO provides compensation for workplace accidents and occupational diseases. It ensures financial support in the event of disability or death due to work-related incidents.

As of 2024, it is mandatory for all employers in Malaysia, including those employing foreign domestic workers, to register their workers under SOCSO as per the Employees’ Social Security Act 1969 (Act 4).

This mandatory coverage ensures that both you and your worker are protected from significant financial burdens that may arise from workplace incidents.

Q: How does Pinkcollar ensure there are no pre-existing illnesses? What happens if a pre-existing condition is flagged? A: We take a thorough, two-step approach to safeguard both employers and workers:

• Recruitment Stage: We directly ask workers about any known pre-existing conditions during the recruitment process. This helps us identify potential health issues early on.
• Post-Match: After a worker is matched to a job, we conduct a comprehensive medical examination to verify the worker’s health status. If more than 3 months have passed since the last medical check before we deploy the worker, we repeat the medical exam to ensure she is fit to work.
• If a pre-existing condition is flagged, we make sure to inform the employer before deployment. Even if the condition is manageable, low-risk, and does not prevent the worker from passing the FOMEMA medical check in Malaysia, we still offer the employer the option of a pre-deployment rematch at no cost under our Employer Protection Policy. This gives employers the flexibility to choose the risk-averse option of rematching to another worker who better fits their comfort level.

Please note that this blog post is intended to provide general guidance on the insurance coverage available for domestic workers.

While we strive to ensure the accuracy of the information provided, policy terms may change over time, and the details outlined here may not always reflect the most current information.

This article should not be used as a substitute for reading the official policy wording and product disclosure sheet. It is essential to carefully review the detailed terms, conditions, and exclusions outlined in the insurance documents to fully understand the coverage and its limitations.

For the most up-to-date and accurate information, we strongly recommend consulting with your insurance agent or directly contacting Zurich General Insurance Malaysia Berhad using the contact information provided above.

Investing in the right insurance coverage for your domestic worker is not just about compliance; it’s about ensuring that you, as an employer, are protected from unforeseen risks.

At Pinkcollar, we’ve made it easy by including comprehensive insurance as part of our service, so you can focus on building a successful and harmonious working relationship with your domestic worker.