Foreign Workers

1
Foreign Workers Product Workshop
2
Foreign workers with insurance may enter hospital
without deposit
Liow said that 17 companies have agreed to take
part in the scheme, 11 of them from Jan 1. The
11 are AXA Affin General Insurance Bhd, Berjaya
Sompo Insurance Bhd, Jerneh Insurance Bhd, Kurnia
Insurans (Malaysia) Bhd, Malaysian Assurance
Alliance Bhd, MUI Continental Insurance Bhd,
Progressive Insurance Bhd, RHB Insurance Bhd, The
Pacific Insurance Bhd and Tokio Marine Insurance
(Malaysia) Bhd. Allianz General Insurance
Company (Malaysia) Bhd, QBE Insurance (Malaysia)
Bhd, Overseas Assurance Corporation (M) Bhd and
Syarikat Takaful Malaysia Bhd will start their
policies on Feb 1 while Oriental Capital
Assurance Bhd will begin theirs on Feb 15. -
BERNAMA
(source New Straits Times dated 07/01/2011)
3
FOREIGN WORKERS SCHEME
Apply to sectors such as Construction, Plantation
and Services which engaged foreign workers from
these source countries.

• Indonesian
• Thailand
• India
• Pakistan
• Myanmar

• Nepalese
• Vietnamese
• Sri Lankan
• Bangladeshi

4
TYPE OF FOREIGN WORKERS SCHEMES

• INSURANCE GUARANTEE(IG)/BANK GUARANTEE (BG)
• FOREIGN WORKERS COMPENSATION SCHEME (FWCS)
• SKIM PERLINDUNGAN INSURANS KESIHATAN PEKERJA
  ASING (SPIKPA)/SKIM KEMASUKAN HOSPITAL
  PEMBEDAHAN PEKERJA ASING (SKHPPA)
• FOREIGN WORKER HOSPITALIZATION SURGICAL
• INSURANCE SCHEME

5

• INSURANCE GUARANTEE

6
Foreign Workers Immigration Bond

• This Bond in the form of an Insurance Guarantee
  is issued in favor of the Immigration Dept of
  Malaysia
• The function of this Bond is to pay Immigration
  Dept the repatriation expenses in the event any
  Foreign Worker during their stay in Malaysia need
  to be repatriated back to their country of origin
• It acts as a security deposit (as required by
  Immigration to the issuance of the calling visa
  work permit

7
GUARANTEE AMOUNT REQUIRED (Sum Insured)

• INDONESIAN RM250
• BANGLADESH RM500
• PAKISTAN/INDIAN/MYANMAR RM750
• OTHERS (Philippines, Turkmenistan, RM1,000
  TO Uzbekistan Kazakhstan) RM3,500

GUARANTEE PERIOD NORMALLY 18 MONTHS BUT CAN BE
UP TO 36 MONTHS
8
PREMIUM CALCULATION
Minimum Premium RM50 per Insurance
Guarantee Stamp Duty
RM10.00 Rate 1.5
Period of Insurance 1/2/2011
31/7/2012RM25,000 (IG Amount) x 1.5 x 547/366
560.45
9
Overseas Assurance Corporation
10
IMMIGRATION BOND - UNDER PIAM GUIDELINES

• If The IG Sum Insured Is More Than RM25K
• The Employer Required To Provide A Cash
• Collateral Amounting To 20 Of The IG
• Amount

11
FOREIGN WORKERS IMMIGRATION BOND UNDER BANK
NEGARA GUIDELINE

• 500K PER EMPLOYER

12
DOCUMENTS REQUIRED FOR IG APPLICATION

• Duly Completed Proposal Form
• Workers Name List, With Passport Number,
  Nationality, Guarantee Amount, Guarantee Period
  Immigration Address

13
Information Required

• By Agent
• Which Immigration Address?
• Duration of the Guarantee?
• When is the Effective Date?
• Note Effective Date could be a few months ahead
  
• Details of foreign workers must be correct to
  avoid amendments or re-issuance of the IG

14
IG Amendment Procedures

• For any amendments that warrants a replacement of
  the original Guarantee (Front 1st Page - with
  Immigration Address), RM10.00 Hasil Stamp will
  need to be pasted on the replacement Guarantee
  and must be charged accordingly.
• For any amendments that warrants a replacement
  of the original Guarantee (2nd Page - Workers
  Name List), Hasil Stamp need not be charged.
• For amendments in regards to the Guarantee
  amount
• a) increase in Guarantee amount, additional
  premium will be charged accordingly
• b) decrease in Guarantee amount, no refund
  premium will be granted or allowed.

15
OAC IG LETTER
16
Extension of Period

• No extension of period of the Issued Guarantee
  is allowed, new IG will need to be issued

Cancellation
No cancellation is allowed once the IG is
issued. Should cancellation still be requested,
no refund premium will be granted or allowed.
Overlapping In Period
No refund premium will be granted or allowed due
to overlapping period of cover.
17
(No Transcript)
18

• Foreign Workers Compensation Scheme (FWCS/SPPA)

19
FWCS/SPPA

• It is mandatory for every employer to Insure all
  the foreign workers under Workmens Compensation
  Act 1952
• It is an offence if the employer fails to insure
  the foreign workers under this scheme. The
  employer will be face hefty fine up to RM20,000
  or Jail term up to 2 years

20
FOREIGN WORKERS COMPENSATION SCHEME/SKIM
PAMPASAN PEKERJA ASING

• Workmens Compensation
• Indemnify the insured against his liability
  under Workmens Compensation Act 1952
• Personal injuries or disease sustained by
• worker in the course of his employment

21
COVERAGE FOR FWCS

• Section1 As per Workmens Compensation Act 1952
• WORKMENSCOMPENSATION (during work hours)
• Death (Sum Insured RM18,000 RM7,000)
• Permanent Total Disablement (Sum Insured
  RM23,000)
• Permanent Partial Disablement
• Temporary Total/ Partial Disablement
• Hospitalization Medical Expenses
• (As per Workmens Compensation Act 1952 schedule)

22
COVERAGE FOR FWCS

• Section 2
• REPATRIATION EXPENSES RM4,800
• Section 3
• PERSONAL ACCIDENT (off-work hours)
• (a) Accidental Death RM23,000
• (b) Permanent Total Disablement RM23,000
• (c) Permanent Partial Disablement
• (d) Temporary Total Disablement
• (e) Medical Expenses RM750
• (As per Workmens Compensation Act 1952 schedule)

23
EXCLUSIONS

• Any lawful act of the Insured Person or wilful
  exposure to danger (other than in an attempt to
  save human life) suicide or attempted suicide or
  intentional self-injury
• The effect or influence (temporary or otherwise)
  of alcohol or drugs not prescribed by a qualified
  medical practitioner, venereal disease, insanity
  or AIDS
• Pregnancy or childbirth, miscarriage or abortion
• Rock climbing, mountaineering (which requires the
  use of ropes or guides), skin diving,
  parachuting, polo, steeplechasing, big game
  hunting or hunting other than on foot, racing of
  any kind other than on foot

24
EXCLUSIONS

• Flying as a member of an aircrew or in any
  aircraft for the purpose of any trade or
  technical operation or air travel other than as a
  fare-paying passenger in any properly certified
  or licensed power-driven aircraft constructed to
  carry passengers
• Riding on motorcycle, motor scooter, moped or
  mechanically assisted pedal cycle (whether as
  driver or passenger) for sports, exhibition,
  competition or racing
• Works carried out in relation to the Insured
  Persons employment with Insured

25
GENERAL EXCLUSIONS

• Any actions for compensations brought in the
  Courts of Law of any territory outside Malaysia
• Loss damage injury by accident or disease
  directly or indirectly occasioned by or happening
  through or in consequence of
• - war invasion act of foreign enemy hostilities
  (whether war be declared or not) civil war mutiny
  rebellion revolution insurrection or military or
  usurped power
• Any act of any person or persons acting on behalf
  of or in connection with any organisation with
  activities directed towards the overthrow by
  forces of any de jure or de facto Government or
  to influencing of it by terrorism or violence
• Any loss damage injury or liability directly or
  indirectly caused by or arising from or in
  consequence of or contributed to by-
• - ionising radiations or contaminations by
  radioactivity from any nuclear fuel or from any
  nuclear waste from the combustion of nuclear
  fuel. Solely for the purpose of this Exception
  combustion shall include any self-sustaining
  process of nuclear fission
• - nuclear weapons material

26
SUMMARY OF FWCS CLAIMS PROCEDURE

• Employer must report any accident to Labor Office
  within 10 days
• If fail to report first offence is RM5K and
  second offence is RM10K

Claim Settlement
27
PREMIUM FOR FWCS....
Only RM72 Per Worker
28
FWCS PREMIUM COMPUTATION

• GROSS PREMIUM PER WORKER PER YEAR RM67
• SPPA SERVICE FEE PER WORKER PER YEAR RM5
• SERVICE TAX IS 6 ON RM 67
• EXAMPLE OF CALCULATION
• WORKERS 10
• PERIOD OF INSURANCE 12 MONTHS
• PREMIUM 10 X RM 67 RM670.00
• SERVICE FEE RM 5 X 10 RM 50.00
• SERVICE TAX 670X6 RM 40.20
• STAMP DUTY RM 10.00
• COMMISSION10 X RM670 RM 67.00
• TOTAL GROSS PREMIUM RM670 RM50 RM40.20
  RM10
• RM770.20
• MINIMUM PREMIUM OF RM50.00

29
FWCS/SPPA

• Enrolment Can Be Done At All OACM Insurance
  Branches.
• Complete Proposal Form, It Is Compulsory To Fill
  In The Next of Kin Column.
• Policy Will Be Prepared And Mailed To Employers
  Together With The ID Cards Within 10 Working Days

30

• Foreign Workers Hospitalization And Surgical
  Insurance Scheme (SKHPPA)

31
SKIM PERLINDUNGAN INSURANS KESIHATAN PEKERJA
ASING (SPIKPA)
Cover Foreign Workers When Admitted In Malaysia
Government Hospital Only
32
SKIM PERLINDUNGAN INSURANS KESIHATAN PEKERJA
ASING (SPIKPA)

• Ministry of Healthy Scheme Facilitator
• Jabatan Tenaga Kerja To Ensure Fairness To
• Workers And Adherence To Labour Laws
• Jabatan Imigresen Malaysia To Assist
  Enforcement
• Standardised Benefits For And Claims Procedures
• For All Insurers

33
WHAT IS PRODUCT ABOUT?

• SPIKPA/SKHPPA
• Is A yearly Renewable Hospital Surgical
  Insurance
• Designed To Reduce The Financial Burden of The
• Employer of Foreign Workers In The Event of
• Hospital Admission of Their Foreign Workers To A
• Non Corporatised Malaysian Government Hospital
• Due To Accident or Illness

34
WHO IS ELIGIBLE

• The Eligible Persons For Insurance Under This
  Policy Are Those Present Future Full-Time
  Foreign Workers Employees of Policyholder, From
  Sixteen (16) to Fifty-Nine (59), Who Are Actively
  Engaged At Their Usual Work On The Date The
  Persons Are Eligible To Join This Policy

35
DESCRIPTIONOFBENEFITS/COVERAGE SCHEDULEOFBENEFIT(A
NYONEDISABILITY)
36
PREMIUM FOR SPIKPA....

• Only RM120 Per Worker
• Inclusive of Third Party Claims Administrators
  (TPCA) FWHS Medik Sdn Bhd Pentadbiran SPPA Sdn
  Bhd (ESP)
• RM10 STAMP DUTY
• Service Tax Exempted If The Premium Paid By The
  Workers
• Commission 10 on RM105
• Cash Before Cover
• Rebate Allowed
• No Group Discount

37
SPIKPA PREMIUM COMPUTATION

• GROSS PREMIUM PER WORKER PER YEAR RM120
• TPCA SERVICE FEE PER WORKER PER YEAR RM15
• SERVICE TAX IS 6 ON RM120
• EXAMPLE OF CALCULATION
• WORKERS 10
• PERIOD OF INSURANCE 12 MONTHS
• PREMIUM 10 X RM120 RM1,200.00
• SERVICE TAX 1,200 X 6 RM 72.00
• STAMP DUTY RM 10.00
• COMMISSION10 (105 x 10) RM 105.00
• TOTAL GROSS PREMIUM RM1,200 RM72 RM10
• RM1,282

38
EXCLUSIONS
1. Pre-existing illness. However, this exclusion
is waived in the event the Insured Person passes
the medical examination as confirmed by Fomema
Sdn. Bhd. (FOMEMA) within 30 days from the
Insured Person's arrival to Malaysia. 2.
Specified IIInesses occurring during the first
one hundred and twenty (120) days of continuous
cover. 3. Plastic/Cosmetic surgery,
circumcision, eye examination, glasses and
refraction or surgical correction of
nearsightedness (Radial Keratotomy) and the use
or acquisition of external prosthetic appliances
or devices such as artificial limbs, hearing
aids, implanted pacemakers and prescriptions
thereof. 4. Dental conditions including dental
treatment or oral surgery except as necessitated
by Accidental Injuries to sound natural teeth
occurring wholly during the Period of Insurance.
5. Private nursing, rest cures or sanitaria
care, illegal drugs, intoxication, sterilization,
venereal disease and its sequelae, AIDS (Acquired
Immunodeficiency Syndrome) or ARC (AIDS Related
Complex) and HIV (Human Immunodeficiency Virus)
related diseases, and any communicable diseases
requiring quarantine by law. 6. Any treatment or
surgical operation for congenital abnormalities
or deformities including hereditary
conditions. 7. Pregnancy, child birth (including
surgical delivery), miscarriage, abortion and
prenatal or postnatal care and surgical,
mechanical or chemical contraceptive methods of
birth control or treatment pertaining to
infertility. Erectile dysfunction and tests or
treatment related to impotence or sterilization.
39
EXCLUSIONS
8. Hospitalization primarily for investigatory
purposes, diagnosis, X-ray examination, general
physical or medical examinations, not incidental
to treatment or diagnosis of a covered Disability
or any treatment which is not Medically Necessary
and any preventive treatments, preventive
medicines or examinations carried out by a
Physician, and treatments specifically for weight
reduction or gain. 9. Suicide, attempted
suicide or intentionally self-inflicted injury
while sane or insane. 10. War or any act of war,
declared or undeclared, criminal or terrorist
activities, active duty in any armed forces,
direct participation in strikes, riots and civil
commotion or insurrection. 11. Ionising
radiation or contamination by radioactivity from
any nuclear fuel or nuclear waste from process of
nuclear fission or from any nuclear weapons
material. 12. Expenses incurred for donation of
any body organ by an Insured Person and costs of
acquisition of the organ including all costs
incurred by the donor during organ transplant and
its complications. 13. Investigation and
treatment of sleep and snoring disorders, hormone
replacement therapy and alternative therapy such
as treatment, medical service or supplies,
including but not limited to chiropractic
services, acupuncture, acupressure, reflexology,
bonesetting, herbalist treatment, massage or
aromatherapy or other alternative treatment. 14.
Care or treatment for which payment is not
required or to the extent which is payable by any
other insurance or indemnity covering the Insured
Person and Disabilities arising out of duties of
employment or profession that is covered under a
Workmans Compensation Insurance Contract.
40
EXCLUSIONS
15. Psychotic, mental or nervous disorders,
(including any neuroses and their physiological
or psychosomatic manifestations). 16.
Costs/expenses of services of a non-medical
nature, such as television, telephones, telex
services, radios or similar facilities, admission
kit/pack and other ineligible non-medical items.
17. Sickness or Injury arising from racing of
any kind (except foot racing), hazardous sports
such as but not limited to skydiving, water
skiing, underwater activities requiring breathing
apparatus, winter sports, professional sports and
illegal activities. 18. Private flying other
than as a fare-paying passenger in any commercial
scheduled airlines licensed to carry passengers
over established routes. 19. Expenses incurred
for sex changes.
41
IMPORTANT NOTES

• Immigration Department Will Enforce
  Administratively On SPIKPA
• All Applications For Calling Visa Renewal of
  Work
• Permit (PLKS) Are Required To Have SPIKPA
• Employer Must Bring Along A Copy of SPIKPA Policy
  Slip To Immigration Counter For Verification
  Before Issuance Of Permits
• Workers Under Plantation Sector Domestic Maid,
  Employers Are Responsible For The Premium

42
LETTER FROM MINISTRY OF HEALTH
43
IMPORTANT NOTES

• It Is Only For Peninsular Malaysia
• OAC Will Provide SPIKPA Password To Agents. This
  Is To Allow Agents To Print Out The SPIKPA Slip
  For Immediate Delivery To Employer
• login to www.spikpa.com.my

43
44
IMPORTANT NOTES

• Employer Can Apply For Salary Deduction From
  Jabatan Tenaga Kerja (JTK)
• SPIKPA Covers Immediately Upon Landing. If Fail
  To Enter Insurers Will Refund Premium In Full
• If Fail Fomema Medical Check-up, Premium Refund
  Will Be Prorated
• Ministry of Health Is Giving 3 Months Grace
  Period For All Workers/ Employers To Take Up This
  Scheme
• If The Employer Has Out-Standing Bills With The
  Government Hospitals, They Are Not Allowed To
  Renew The Workers Work Permit

44
45
SPIKPA DATA PROCESS SUMMARY
HOSPITAL KERAJAAN
Third-Party-Claims Administrator (TPCA)
2
Faks
Download Policy Data, Endorsement Claims
bill/ Hospital
1) Verification of Worker identity Via
Internet Telephone Interactive (IVR) 2) To
Manage SPIKPA Billings Claims 3)
SPIKPA report Statistics
3
Upload Payment Data SPIKPA Claim Bills / Hospital
2
PENTADBIRAN SPPA SDN BHD (ESP untuk SPIKPA)
2
Upload Policy Data Endorsement
PANEL INSURERS SPIKPA / FWHS
1
JABATAN IMIGRESEN MALAYSIA (for verification)
Download Policy Data Endorsement
45
46
ADDITIONAL INFORMAITON

• SPPA - ELECTRONIC SERVICE PROVIDER
  (ESP) Provides IT Infrastructure-
• For Hospitals To Verify Availability of
  Insurance During Admission.
• Monitor Payment of Hospital Bills and
  Outstanding Amounts.
• Trigger non-compliance by Employers,
  Workers, Insurers and TPCA.
• Link to JIM
• Generate reports, including health
  statistics.
• TPCA - THIRD PARTY CLAIMS
  ADMINISTRATORS (One registered for now, more
  shortly)
• Verify Hospitals
  bill.
• Call Center
  for Inquiry on Insurance Benefits
• Billing of Medical Expenses to Insurers
• Collect payment cheques on behalf of MOH
  Hospitals.
• MOH
• HOSPITALS - Admit Foreign Workers
  Provide Daycare Surgery.
• Verify availability of Insurance with ESP
  (SPPA) during Admission.
• Provide information to TPCA before
  Discharge to determine coverage.
• Enter Key Data during Discharge.
• Attending Doctor to complete medical
  report.
• Send Bill, Medical Report and
  Investigation reports to TPCA.

47
Standard JTK Salary Deduction Letter

• Ketua Pengarah
• Jabatan Tenaga Kerja Semenenjung Malaysia
• Aras 5, Blok D3, Kompleks D,
• Pusat Pentadbiran Kerajaan Persekutuan,
• 62530 Putrajaya
• Tarikh
• Y. Bhg. Dato',
• PERMOHONAN BAGI MENDAPATKAN KEBENARAN UNTUK
  MAJIKAN MEMBUAT POTONGAN GAJI PEKERJA ASING DALAM
  PELAKSANAAN SKIM PERLINDUNGAN INSURANS KESIHATAN
  PEKERJA ASING (SPIKPA) KEMENTERIAN KESIHATAN
  MALAYSIA
• Dengan segala hormatnya saya merujuk kepada
  perkara di atas.
• Seperti yang pihak Y. Bhg. Dato' sedia maklum,
  Skim Perlindungan Insurans Kesihatan Pekerja
  Asing (SPIKPA) Kementerian Kesihatan Malaysia
  telah dilaksanakan bermula 1 Januari 2011. Oleh
  itu, semua pekerja asing yang bekerja di Malaysia
  adalah diwajibkan untuk memperoleh polisi
  insurans Skim Kemasukan Hospital dan Pembedahan
  Pekerja Asing (SKHPPA) dengan jumlah perlindungan
  insurans kesihatan sebanyak RM10,000 setahun
  dengan bayaran premium sebanyak RM120 setahun
  bagi setiap pekerja asing.
• Untuk makluman pihak Y. Bhg. Dato', kami adalah
  sebuah syarikat sektor nama syarikat no.
  pendaftaran syarikat yang beralamat di alamat
  syarikat. Setelah perbincangan dibuat dengan
  semua pekerja asing yang bekerja di syarikat
  kami, satu persetujuan telah dicapai agar pihak
  syarikat (majikan) mendahulukan bayaran premium
  insurans semua pekerja asing kami dan seterusnya
  membuat potongan gaji bulanan pekerja-pekerja
  asing terbabit.
• Oleh yang demikian, pihak kami ingin memohon
  kelulusan pihak Y. Bhg. Dato' untuk melaksanakan
  potongan gaji bulanan ke atas pekerja-pekerja
  asing yang terbabit seperti butiran berikut
• 1) Premium insurans tahunan sebanyak RM120 bagi
  setiap pekerja asing

48

• WHY DO WE NEED TO FOCUS ON
• IG FWCS ?
• From IG business we get FWCS/SPIKPA
• - It is advisable to make it compulsory, every
  IG has to be
• accompanied with FWCS/SPIKPA especially for
• renewals
• IGs/SPIKPA are normally required to be issued
  very urgently
• To be ahead of competitors, we encourage branch
  to issue it within the same day
• IG FWCS are profitable class of Insurance.

48
49

• SELLING POINTS
• NO UNDERWRITING REQUIRED
• PREMIUM IS FIXED
• EASY TO SELL AS IT IS A MANDATORY REQUIREMENT BY
  GOVERNMENT

49
50
MARKET TARGET

• GOVERNMENT AGENCIES
• EMPLOYMENT AGENCIES
• EMPLOYERS
• OUT- SOURCING COMPANIES
• LEGALIZATION EXERCISE
• FOMEMA
• EMBASSY ASSOCIATES

50
51
51
52
PREMIUM COMPUTATION FOR IG, FWCS SPKIPA

• EXAMPLE OF COMMISSION EARNED
• Case 1
• WORKER 1
• FWCS IG SPKIPA 67.00 50.00 (base on min.
  premium)
• 105.00
  222.00
• COMMISSION 10 each product 6.7 5 10.5
• TOTAL COMMISSION EARNED RM22.20
• Case 2
• - WORKER 100
• FWCS IG SPKIPA 6,700.00 560.45
  10,500.00
• - COMMISSION 10 each product 670.00 56.50
  1,050.00
• TOTAL COMMISSION EARNED RM1,776.50
• (based on the IG premium calculation of slide
  no. 7)

53
FOREIGN WORKERS NATIONWIDE
STATE 2009 2010
JOHOR BAHRU 250,348 242,006
KEDAH 38,541 38,931
KELANTAN 6,301 7,473
MELAKA 45,015 44,274
NEGERI SEMBILAN 37,684 40,623
PAHANG 50,158 55,034
PULAU PINANG 85,562 86,590
PERAK 69,093 86,590
WILAYAH 137,515 141,103
SELANGOR 283,610 303,956
SABAH 157,650 137,927
SARAWAK 60,972 71,358
53
54
MARKET FORECAST FOR FWCS SPIKPA

• TOTAL NUMBER OF FOREIGN WORKERS IN MALAYSIA
  APPROXIMATELY 2MIL
• FORECAST FOR LEGALIZATION EXERCISE APPROXIMATELY
  350K FOREIGN WORKERS
• ESTIMATED PREMIUM FROM THE WHOLE INDUSTRY IS..

RM439Mil
54
55
THANK YOU
55