Foreign workers' insurance stays

KUALA LUMPUR: The Health Ministry stands firm on its decision to make it mandatory for all foreign workers to be medically insured effective next year.

Speaking to The Malay Mail yesterday, Health Minister Datuk Seri Liow Tiong Lai assured that the move was for the nation's good and the annual cost of RM120 for the insurance premium was "minimal".

Liow said the government ruling should not worry employers as the annual insurance premium is borne by the employees, not employers.

“There are only two industries where the premium is borne by the employers, namely, the maid and plantation industry,” said Liow, when met at Parliament.

“Otherwise, the costs are borne by the employees themselves. However, RM120 is not a high premium.

"With it, the worker is insured up to RM10,000 in hospital fees instead of only RM750 under the current Foreign Workers Compensation Scheme, which awards compensation due to illness, injury or death during accidents at work only.

“It is, after all, for their health. They don’t have to worry when they visit the hospital because they are protected.”

Liow said the ruling was important because the government had to address the escalating uncollected hospital debts due to foreign workers who sought treatment at government hospitals.

“Last year, uncollected debt at hospitals was estimated at RM14 million. This year, it is about RM18 million.

"We have to do something because this is too much.”

Liow said the move was also one of the EPPs (Entry Point Projects) of the National Key Economic Activities for his ministry.

“It’s for the good of the nation. We hope reducing the uncollected debts will help our country’s economy.”

However, foreign workers outsourcing company, IRC Global Search (M) Sdn Bhd, called on the government to rethink the move.

It claimed the ruling would affect operational costs of small and medium enterprises.

The ruling takes effect on Jan 1 next year.

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Joseph Kaos Jr
Friday, December 3rd, 2010 13:55:00