The demand for Workmen's Compensation Insurance had reduced significantly ever since the amendment to the Employee's Social Security Act 1969 in 1992. With effect from 01.07.1992 all industries having one or more employees are required to register with the Social Security Organization and employees who are earning RM2,000 and below as wages per month are required to contribute to SOCSO.

Under the principle of "once in always in", an employee will still remain under the SOCSO Scheme despite the fact that at the later stage his wages may exceed RM2,000 per month.

Nonetheless, despite the SOCSO requirement, there still exist a small market for Workmen's Compensation Insurance and this demand usually comes from:

a) Contractors who are obliged to arrange such insurance under the conditions of the contract with the Principal.

b) Employers with foreign workers who are not eligible to contribute to SOCSO but because of (a) above, usually include these workers in their insurance based on the wage roll of 15% of the total contract value. It should however be noted that the employer Of their sub-contractors are also required under the provision of the Workmen's Compensation (Foreign Workers Compensation Scheme) (Insurance) Order 1996 to insure all their foreign workers under the foreign workers compensation scheme with effect from 0 I .11.1996 onwards with any of the consortium of approved insurers under the 1996 amendment to the Workmen's Compensation Act.

This policy is designed to provide cover for any employee in the Insured's immediate service against injury by accident or disease arising out of an in the course of this employment which his employer is liable to pay for such compensation either under

a) The Law (s) set out in the schedule of the policy.

b) Common Law

For the purpose of the Ordinance, the following persons, among others, are excluded from the definition of "Workman"

a) Any person employed otherwise than by way of manual labour.

b) A person whose employment is of casual nature and who is employed otherwise for the purpose of the employer's trade or business, not being a person employed for the purpose of any game or recreation and engaged or paid through a club.

c) A domestic servant

d) Any member of the family of the employer who dwells with him in his house.

a) Timber loggers

b) Tin mining workers, quarries, sand or gravel cutting labourers.

C) Stevedores

d) Window cleaners (external) working at heights exceeding 30 feet

e) Woodworking risks

f) Security guards

g) Mangrove cutters

a) Acid and gas works.

b) Divers

c) Fire Brigade

d) Armed forces and law enforcement personnel

e) Oil rigs workers

a) Aircraft crews. 

b) Underground and underwater mines and all underground services in connection therewith 

c) Manufacturing and/or production, storage, filling, breaking dovltl, transport of:

i) Fireworks, fuses, cartridges, ammunition, powder, nitroglycerine or any explosives

ii) Gases and/or air under pressure in containers, butane, methane, propane, and other liquified gases (other than retail distribution, and/or storage for domestic use, and/or storage and transportation by general distributor and consumers)

iii) Toxic substances and toxic waste.

d) Ship crews except for crews of motor tugs, motor vessels, pontoons, and wooden vessels not exceeding 1,500 tons in Malaysia. Singapore, Brunei, and Indonesia waters 

e) Tunnelling exceeding 50m in length. 

f) Bridge building more than 150m in length (except bridges with a contract value not exceeding RM10 million) 

g) Construction. maintenance and demolition of towers, and steeples, chimney shafts, unless incidental to operations. 

h) Contractors engaged exclusively in wrecking and demolition. 

i) Construction and maintenance of darns. 

j) Shipbuilding, ship repairing and ship breaking yards, including construction, repair or

    installation on vessels. k) Oil companies -drilling, producing, refining, and distributing (other than general distributor) 

k) Racers