All employees earning salary wages of RM 2,000 or less a month are required to be insured under the Malaysian Social Security Act 1969. Such employee in the event of an accident arising in the course of employment can only claim benefits provided under the SOCSO Act. They are debarred from suing the employer under Common Law. The employees however can sue their fellow employees for negligence under the Common Law.

Employee earning above RM 2,000 per month are not required to be covered by SOCSO (unless they have been covered by SOCSO when they were earning less than RM2, 000). Such employees in the event of an accident arising in the course of employment can sue their employer for negligence under the Common Law.


Scope of Cover
i) To indemnify an Insured (Employer) when held to pay damage
ii) To pay for legal defense costs incurred when defending claim


Limit of Indemnity
The sum insured in Employer's Liability Policy is represented by the Indemnity Amount which is categorized into:-
i) Limit of Indemnity Any One Accident
ii) Limit of Indemnity Any One Period
The indemnity granted for any one accident is a fixed amount determined by the insured according to the exposure and  circumstances of the business.


Rating
i) Premium rate is computed on the estimated annual salary of each employee
ii) See Rating Table attached to Workmen's Compensation Insurance
iii) Minimum Rate: 0.10%
iv) Agents are advised to refer to the company for guidance where lower rates are expected to secure risks.

Special Note
The Employer's Liability Policy does not cover the foreign workers
The Foreign Workers means manual workers under this nationality e.g. Indonesian, Bangladeshi, Indian etc.


Minimum Premium
RM100.00


Referred / Declined Risks
Same as those listed in Workmen's Compensation Insurance.