More Expenses for Migrant Workers

Minister say migrant worker who do not buy insurance/settle hospital bills will not get work permit renewed...

It is shocking that the Malaysian government is asking that migrant workers themselves, not their employers, to pay for their own Foreign Workers Hospitalisation and Surgical Insurance. The exception being employers of domestic workers, and those in the plantation sector. I believe that this is discriminatory - and there is no justification why not all employers are required to pay.

Secondly, are not migrant workers already covered by the Workmen’s Compensation Act 1952 (amended 1996)., which provide today coverage not only for accidents that happen at the workplace, but for all accidents anytime. The coverage also covers the cost of treatment, hospitalization, etc... and if what is provided for in is inadequate, possibly also by reason that migrant workers are charged 1st class rates at government hospitals and healthcare facilities, then the appropriate action would be to amend these laws to update the coverage so that it is sufficient to cover the exorbitant rate Malaysian government charges all foreigners, including migrant workers.

Since all forms of accidents are covered, and certainly all other forms of workplace related illness are covered, all that remain are sickness that are not workplace related. But, given that most migrant workers also stay in accommodations provided by their employers, hence employers should also be responsible to cover the cost of treatment of illness caused by close human contact and/or proximity, any which is by reason of poor accommodation conditions. Hence, rather than insisting on another insurance, it may be best to just expand the scope of the insurance already existing under the Workmen’s Compensation Act 1952 (amended 1996)..

If it is an industrial accident, are we saying that the worker is supposed to pay for it - and not the employer? This is absurd - for logically and reasonably, if it is an industrial accident, then the employer is duty bound to pay all monies to ensure immediate treatment, surgery, etc...

What is interesting is that migrant workers have no choice, and they are forced to buy this insurance only and not some other. And, if they do not, then their work permits will not be renewed... Why do they have the choice to buy some other insurance?

Now, if their outstanding bill is not settled, their work permit will not be renewed. Is the Minister talking about present 'outstanding bill', or future outstanding bill? Why should migrant workers suffer for the failings of an employer. An errant employer who may no longer need the services of a migrant worker, despite the fact that the initial agreement may have been for a couple of years more can simply not settle the medical bill - and the worker's work permit will not be renewed, and he will be sent back to the country of origin prematurely. [Some say, why can't the worker fight and claim for breach of contract...the short answer is money and the fact that any court/tribunal needs the complainant/claimant to be physically present for the case to proceed, and a migrant worker with no work permit do not have the right to stay legally in the country...]. On a platter, the government of Malaysia has just handed errant employers another method to wrongfully and unjustly get rid of the worker when their services are no longer needed.

Liow said that any outstanding hospital bill must be settled by the foreign worker concerned or his employer before a work permit can be renewed.

Another matter of concern, was the assertion that migrant worker needing medical attention need ONLY to produce his passport. But, this is a problem because in most case employers and/or agents illegally hold on to the passports of migrant workers. And despite the fact that the Malaysian law requires the migrant worker to be able to produce his/her passport on demand, failing which it will be an offence, resulting usually in immediate arrest, detention, etc.. - the Malaysian government shows no political will to stop this wrong. Passports are used like leashes to 'control' migrant workers.

"These foreign workers only need to produce their passport at the registration counter," Health Minister Datuk Seri Liow Tiong Lai said Friday.

I have knowledge of one case, where a worker who got injured in an industrial accident lost the usage of his fingers which could have been re-attached by surgery because the employer took time getting the passport and the required deposit to the hospital. Speed sometimes is essential for saving lives, limbs, etc - and it is hoped that Malaysian doctors and hospitals will not just stand by and see migrant workers die, or lose the opportunity of using one's hand by reasons like not having their passport, not having some medical insurance, not having enough money for deposit/treatment. Have we in Malaysia lost our humanity?

And the proposed insurance will cost the worker RM120, and the maximum coverage is RM1,000 according to the Bernama report attached. I just met a women migrant worker in Penang that took home about RM200 monthly wages, and so I wonder whether there is really any more money available to pay for insurance. Further, lowest deposit for a migrant worker who need to be warded is RM400, and if it was a surgical case, it is RM800-00. Operation charges can range from RM50 to RM3,000 depending on the type of operation. Ultrasound cost RM100. Radiology charges range from RM50-RM600. Lab charges range from RM5 to RM100 depending on the type of tests, and usually there will be quite a lot of tests needed. So, really do we think that RM1,000 coverage is sufficient? I believe that there are certain that there are other insurance policies in the market that provides better coverage...

It is also wrong to impose a new obligation to buy insurance on migrant workers already here and working in Malaysia. It could be done for new migrant workers - who then at least the opportunity whether they do want to come work in Malaysia or not.

Personally, I am of the opinion that all medical and healthcare charges should already have been borne by the Workmen’s Compensation Act 1952 (amended 1996) that now provides 24 hour coverage to the migrant worker. If the provisions do not provide enough payment for medical treatment at government healthcare facilities, then the Act needs to be amended. If sickness, i.e. not work related ailments and/or occupational diseases, are not covered maybe the scope of coverage should be covered. If there is be any additional insurance, then rightly it must be the employer who pays for it, and also for any medical charges over and beyond the coverage of the said insurance policy. If there outstanding medical bills, it must be the employer that is penalised by way of a fine or being 'blacklisted' from being to employ new migrant workers, the present migrant worker's work permit must never be held as ransom until outstanding payments are made. We are talking about human beings here - not some car or motorcycle.

KUALA LUMPUR, Jan 7 (Bernama) -- Employees covered by the Foreign Workers Hospitalisation and Surgical Insurance Scheme need not pay a deposit or produce a guarantee letter to be admitted to a government hospital.

"These foreign workers only need to produce their passport at the registration counter," Health Minister Datuk Seri Liow Tiong Lai said Friday.

This followed the implementation of the Foreign Workers Health Insurance Protection Scheme on Jan 1 which provides for cashless admission, he said in a statement.

The insurance scheme provides coverage of up to RM1,000 with premium payment of RM120 a year.

Liow said that employers of plantation workers and housemaids are required to finance the insurance policies while other foreign employees must pay for themselves.

The foreign workers are given three months to buy the insurance policies.

"For this group, the premium payment imposed by the insurance company will be based on the remaining period of validity of the work permit," Liow said.

"Those who fail to do this (buy insurance policies) will not be allowed to renew their work permits."

Employers who advance premium payments for their workers must seek permission from the head of the manpower department to deduct from employees' salaries.

Liow said that any outstanding hospital bill must be settled by the foreign worker concerned or his employer before a work permit can be renewed.

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- Bernama, 7/1/2011, Foreign Workers With Insurance May Enter Hospital Without Deposit

Vietnam cleans up the insurance market

Here is something of interest.... to me that's it, but who knows, maybe you are also interest in.

Vietnam cleans up the insurance market

The draft law on the amendments and supplements to the Business Insurance Law has been completed before being submitted to the NA for approval at the forthcoming meeting from October 20 to November 27. The Ministry of Finance said that these amendments are necessary to heighten the responsibilities and mandates of state agencies, businesses and customers and create a healthy insurance market.

Representatives from the Vietnam Insurance Association said that the amendments and supplements to the Insurance Business Law will overcome any shortcomings in Vietnam’s insurance market, creating an equal playing field for all insurance companies.

Difficulties in bidding procedures

One of the articles to be amended this time is whether or not to apply bidding procedures on insurance products. Will the captive insurer model be prohibited or have stricter provisions. A representative from a major insurer in Vietnam said that if the regulations on providing insurance services have been carried out under proper bidding procedures, this would have helped Vietnam’s insurance market become healthier.

The draft law on insurance businesses stipulates that all groups and corporations will have to use bidding procedures in a public manner. Deputy Director of the Petro Vietnam Insurance Company (PVI), Vu Van Thang, said that every product should be put for tender as some domestic insurance companies do not have the capacity. Therefore, bidding procedures could cost more money and take longer.

However, an insurance expert emphasised that bidding procedures are necessary as at least 30 percent of insurance fees will be reduced. In addition, a public tender will offer opportunities for many other insurance companies to take part and more choice.

The National Assembly’s Economic Committee said that the activities of insurance services have not been regulated under bidding regulations over the past few years, leading to a lack of transparency in the insurance market.

Businesses’ insurance products under groups and corporations have been restricted in which insurer they can choose, leading to an unhealthy situation in the insurance market. Currently, Vietnam has more than 10 groups and corporations which have subsidiary companies (or captive insurers) offering insurance services. With the advantages of operating in their sectors, these captive insurers have more opportunities to get insurance contracts.

The re-insurance department at the PVI said that the establishment of specialised insurance companies by major corporations are an international practice and comply with Vietnam’s trend for international integration. Many big oil and gas companies in the world such as BP, Petronas, Talisman, Huyndai and Samsung also have subsidiary companies specialising in the insurance field.

A representative from PVI said that the use of captive insurers have helped groups recoup part of their investment capital and increase the efficiency of their operations.

Meanwhile, the Vietnam Insurance Association said that the captive insurance model have been applied by many financial institutions in developed countries. However, these groups are private and often offer reasonable insurance rates. In Vietnam, these corporations belong to the State.

An insurance expert calculated that the rates for insurance contracts of captive insurers have often been higher than in the market. Meanwhile, 90 percent of the total insurance fees from these companies have been re-insured with international reinsurance companies.

The PVI said that captive insurers are fully aware of the parent companies’ business operations and mechanism for providing financial support.

However, a major insurance company in Vietnam does not agree with PVI. The company said that before PVI, many companies such as Bao Viet and Bao Minh had assumed these tasks and they are internationally recognised as prestigious re-insurance companies.

The NA’s Economic Committee reported that many economic groups and corporations have captive insurers, leading to a lack of competitive edge and transparency. A representative from the Vietnam Insurance Association said that the NA Standing committee has asked these groups to submit detailed reports on the captive insurer model and its financial operations. – VOV

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Skeptic in Qatar: Takaful

Skeptic in Qatar: Takaful

Filling up the gas tank using MyKad?

When visiting gas stations to fill up the tank, make sure you have your MyKad with you come May 2010.

Without MyKad, your cash or credit card will not get you even a single drop of petrol!

I have no idea whether we will also need to swipe our MyKad to buy sugar, cooking oil and the like in the future.

The Malaysian government may be the only one in this world that needs to verify a buyer's identity before he fills up his petrol tank.

This reminds me of communism, where the people needed to show their identifications when buying a loaf of bread.

But then that was an era long gone.

At a time when ASEAN states and China are opening up their markets towards one another, I have no idea the policy of selling petrol on identification is meant to show off MyKad's multiple functions, which even many developed countries pale in comparison, or to stop foreigners from buying cheap petrol here.

If we are doing it just to show off the multiple functions of MyKad, then we should rightly feel proud, as a pocket-size MyKad can accommodate at least eight different functions.

Any data, from personal particulars to whether the cardholder is suffering from VD as well as his wealth and other private details, will be unreservedly exposed with a MyKad reader.

This is of secondary importance, and the worst thing is that there is no product assurance on the extremely vulnerable MyKad chips.

Imagine you are in a hurry for work, school, or some business meeting, but having an empty tank in front of a gas station MyKad reader that refuses to accept your identification.

JPN urges the public to replace their chips if found damaged, showing that such a possibility is very real.

Imagine half the country's population rushing to JPN to replace their MyKad just to fill up their petrol tanks, and the additional burden on JPN's side.

If the new policy has been a counter-measure against foreign car owners who have poked the loopholes in the earlier policy of allowing foreign-registered vehicles to fill up their petrol tanks only within 50km from national borders, and up to 20 litres before leaving the country, then it is by all measures a very poor contrivance.

Foreign vehicles, especially those from Singapore, have brought much bigger economic benefits to this country than the profits they have sneaked away from our petrol allowances.

Inconveniences experienced at petrol pumps will only drive them away.

If we do this merely to stamp cross-border smuggling activities, then the anti-smuggling squads should work a lot harder to check their activities instead of transferring the hassles to motorists across the nation.

It is necessary for us to prevent foreigners from enjoying our petrol allowances, but not to spend huge sums of money acquiring MyKad readers and inconvenience motorists! 

Acknowledgment: (By TAN POH KHENG/Translated by DOMINIC LOH/Sin Chew Daily)

EARN S$ SPEND RM

As Malaysia's younger workforce entry-level pay drifted down towards the poverty line, more and more Gen-Y workforce are being driven down south in search of employment that provide them with Singapore dollars.... With Sing$, then only they find it worthwhile living the frugal life to save and then spend them back home during the holiday breaks. It is definite more strategic than working hard in Kuala Lumpur, lives frugally but at the end of the day cannot even save a hunderd ringgit a month! But in Singapore, many of these Gen-Y graduate workers have proven despite the higher costs of living comparatively, save more effectively if they share room with their colleague in some lower costs HDB flats.... What they cannot even save a hunder ringgit they can save up to S$200 a month! Wow! Converting back to RM, this is nothing less than RM450.... We have to realise, in Singapore, only accomodation and owning a car are on the higher side compared to that in KL but most of the other things, the costs are relatively lower if we do not work on any currency conversion - this means the MRT is cheaper, food is cheaper, bus is cheaper, entertainment is cheaper... blah, blah blah...

But most of all you get the good old savings for your future and GOOD SECURITY - you don't get mobbed on public road.... and much better hygiene everywhere! True therefore, numerous of my younger friends and colleagues had or are in process of migrating their working lives down south....

What does this relates in the more strategic sense? Yes, Malaysia is going to be a country that is a net exporter of young graduate workforce, especially from the insurance industry, mostly to Singapore, Hong Kong, Gulf nations and some third world countries.... Why? Malaysian corporations cannot afford to pay - simple as that! Why again? They are too short sighted - getting the short term gains forgoing the longer and more strategic aspect for the long term benefit to the country! No one is thinking long term for the country now - they just want to make the bucks faster to realise their investment better. Was this because no one trust the economy of the country or was it all about our joker politicians?

Is this phenomenon damaging for Malaysia? YES, Without the most capable younger workforce, it would eventually create a brain drain and therefore a subsequent vacumm in the years to come.

No wonder Najib, our PM is working towards beefing up the nation to attain the status of a higher income earning nation, and not continues to live under the banner of low costs. Looks like it is going to be an uphill task!

Care to throw your shoes at your boss? Perhaps the Bank Governor?

Muntadhar al-Zeidi, the Iraqi journalist who hurled his shoes at President George W. Bush is now a well known man.In Geneva recently he was greeted by the Swiss with rounds of applause - it was a hero's welcome on Monday 19 October 2009. At the conference he repeated his allegations that he was severely tortured, including with electric shocks, during his none months of detention!



But this is now history, his reception in Switzerland was noteworthy unlikely those that were given when he was just released from prison back in hi home country. Yes! They said he is now famous as there are now more engagement for him, either to write or invitation to talk... Much money are involved especially gifts coming from the wealthy Arabs and an opportunity to spearhead the a foundation to support suffering Iraqis. What an achievement now compared to the days before he hurled his shoes at the President of USA.

Is that how people can become famous and improve their status financially?

I supposed so.... You can try throwing your pair of shoes at your boss during some important functions especially where all the press people are around. I am sure you can be famous! You could became famous if that's be the Bank Governor while she is delivering some speeches to foreign guests! You may end up being called to lead a group of deprived insurance workforce - deprived of promotion and reasonable increament... merely getting a 1% to 3 % increament year in year out! As you throw you shoes - but do remember, throw slippers will do as you are not famous and wealthy enough to buy a good pair of working shoes - you know your shoes may be confiscated as an evidence in court! After throwing do make enough loud noices and shout on top of your voice - shout whatever reason you think is approprite - make sure the people around don't think you are a sicko...oooo otherwise you end up in Tg. Rambutan serving hard times for nothing!

Nevertheless, I think you should end up famous.... if you act as if there are important political message to be sent in the slipper throwing incident... Yes you may be the next CEO or perhaps able to write a sell-out ebook! But then, do be prepare to be put into the lockup and suffered for a couple of months.... out of a job and so on! You must presevere so that you can get where you want ot go.....


Care to throw your shoes or slippers at your boss?