What Happens If You Don't Have Workmen's Compensation?

In Malaysia, employers have legal duties when a worker is injured or made ill by their work. Today, most of that protection runs through SOCSO (PERKESO) under the Employees' Social Security Act 1969, with the older Workmen's Compensation Act 1952 as the original foundation. Missing registrations, late contributions or gaps in cover don't make the obligation disappear; they leave you personally exposed when an incident happens.

What you're actually on the hook for

If an employee is injured or falls ill because of their work and your registration or cover isn't in order, you — not an insurer or the scheme — may be left responsible for their medical expenses, lost wages and any disability benefits owed. If the injury is fatal, you may also face responsibility for funeral expenses and support for the employee's family.

It applies to your whole team

This isn't limited to full-time staff. The requirements generally extend to local and foreign workers, and to full-time and part-time employees alike, so a smaller or informal team doesn't reduce the obligation. Check the latest PERKESO guidance for how it applies to each type of worker in your business.

Where insurance fits in

SOCSO benefits have their own limits and eligibility rules. Workmen's compensation or employer's liability insurance, together with personal accident and group medical cover, can help fill the gaps. Read more in our guide to the Workmen's Compensation Act 1952 and what employers need to know.

Why this catches businesses off guard

It's often treated as paperwork to deal with "eventually," right up until an incident happens. At that point, a gap in registration or cover turns a workplace accident into a direct financial liability for the business owner.

Work with Cover Buddies Today!

We help you set up the right cover for your workforce, so this is settled before it's ever tested.

See our workmen's compensation page for what's covered, or get a quote to get this in place.