KUALA LUMPUR - The stringent approach taken by the Social Security Organisation (Socso) in paying out compensations is with good reason, at least according to the Malaysian Trades Union Congress (MTUC) and the Malaysian Employers Federation (MEF).
The workers union claimed Socso’s limited fund and high liability has forced the statutory body to be more frugal, while the employers' group said more diligence has to be practised due to numerous instances of individuals making false claims.
MTUC president Datuk Abdul Halim Mansor pointed out that Socso’s supposed lack of funds had stemmed from a “very low contribution rate”.
At present, workers have to contribute 0.5% of their wages to Socso – while employers contribute 1.75% – for the Employment Injury Insurance Scheme and the Invalidity Pension Scheme.
“Malaysia’s social security contribution rate is among the lowest in the world, but Socso has a very huge financial responsibility, including to assist those who have lost jobs. So it’s not right to say Socso is not helping out,” he told The Vibes.
According to Abdul Halim, many claims were also rejected because workers had applied for compensation despite suffering non-employment accident injuries, while those with disablement or invalidity often submit wrong or incomplete applications.
“When claimants submit their applications and medical reports to Socso, it will be assessed by an independent panel of doctors. Unfortunately, many of these are incomplete or inaccurate.
“As for those who are involved in an accident, if it is not during any work-related travelling, then it’s not Socso’s responsibility,” he said.
Under Section 24 of the Socso Act 1969, an accident shall be deemed to arise out of and in the course of his employment if the accident happens while the worker is travelling to or from his workplace, on his journey for meal, or travelling for any other reasons related to his employment.
Make appeal, seek assistance
Abdul Halim was commenting on Human Resources Minister Datuk Seri M. Saravanan’s statement last Thursday that Socso is not responsible in deciding which claims get approved, saying these are done by an independent panel of doctors and lawyers.
The minister was responding to discontent among contributors over difficulty obtaining aid and benefits, despite many suffering permanent disabilities.
For those whose claims are rejected, Abdul Halim said they could still make an appeal with the social security appeals tribunal.
He cited a landmark ruling by the Court of Appeal last week – that widows whose marriages are not registered are entitled to claim for surviving spouse benefits under Socso – as an example of how appeals could be helpful.
This was after a widow T. Sarsvathy, who went into an Indian customary marriage in 1990 and did not register her union under the Law Reform Act (Marriage and Divorce) 1976, had her pension claim rejected after her husband died three years ago.
Abdul Halim said disgruntled individuals could also seek assistance directly from MTUC.
False medical report a recurring theme
MEF executive director Datuk Shamsuddin Bardan said he understood that Socso’s prudent take on compensation payout was from years of experience in dealing with falsified claims.
“They have no choice but to be more stringent, otherwise the people will continue to abuse the fund,” he said.
Shamsuddin noted that there have been many cases involving claims for disablement and invalidity where the claimants had colluded with doctors to provide a false report.
“The integrity of many of these claimants can be questioned, so Socso isn’t solely to be blamed,” he said.
On whether Socso should increase the contribution rate among both employers and employees, Shamsuddin said this should be avoided at the moment, especially as the country grapples with the economic challenges of Covid-19.
He said even if there was any plan for an increase, it should be minimal and with expanded coverage.
“Maybe Socso can extend the employment injury scheme to cover even non-work-related injuries and accidents,” he said.
Socso should stop being too meticulous in approving claims
Meanwhile, National Union of Banks Employees (NUBE) general secretary J. Solomon said it is still Socso’s responsibility to provide protection to workers who suffer injuries or disabilities, particularly where there is enough evidence to prove the claims.
He blamed Socso’s “extremely meticulous and strict requirements and procedure” as the reason behind many workers and dependents’ rejected claims.
“The whole reason Socso was set up is to provide social protection for the workers. The problem is they are becoming too technical with approving applications.
“They shouldn't be depriving contributors of their right by avoiding to pay out benefits or provide financial assistance,” he said. – The Vibes, October 7, 2020
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