Kuala lumpur: The Malaysian Association of Employment Agencies (PAPA) has introduced an insurance scheme designed to provide balanced protection and address structural gaps for both employers and domestic workers in Malaysia.

According to BERNAMA News Agency, PAPA's president, Datuk Foo Yong Hooi, outlined that the policy includes crucial coverage features such as compensation for abscondment, hospitalisation, and illness, which had been previously neglected. Foo explained that this initiative aims to fill a structural gap in the domestic worker recruitment system, where the guarantee period usually lasts three to six months, leaving employers exposed to financial risks once it expires.

The scheme, developed in collaboration with GMAT Sdn Bhd and Allianz Malaysia, offers employers RM5,000 in compensation if a domestic worker absconds during the insured period, helping to offset recruitment and placement costs. Foo noted that while the first year is considered the highest-risk period, the RM5,000 runaway worker benefit will not apply beyond the first year. However, other benefits, such as personal accident and hospitalisation coverage, will continue.

The policy extends hospitalisation and surgical coverage for domestic workers beyond work-related injuries to include general illnesses. It offers weekly compensation for up to 12 weeks if a worker is medically certified as unfit for duty and provides limited assistance for the loss of essential documents like passports. Foo highlighted that this scheme offers broader protection compared to a previous abscondment policy discontinued due to fraudulent claims and addresses the lack of illness-related medical coverage for domestic workers, who are classified as informal workers.

Foo mentioned that the Social Security Organisation (PERKESO) coverage is limited to work-related accidents, and this new programme is designed to address that gap. The scheme, initially introduced for PAPA members, is also available to other employers with domestic workers.

In addition, GMAT Sdn Bhd's chief executive officer, M. Marimuthu, stated that the policy can be purchased online and allows for the reimbursement of hospitalisation and surgical expenses at private hospitals, subject to certain limits.