Malaysia Makes 24-Hour Accident Insurance Scheme Contributions Voluntary

The Malaysian government has reversed its decision on mandatory contributions to the 24-Hour Accident Insurance Scheme, known as Lindung 24 Jam. In a significant policy shift, the scheme will now be voluntary, effective immediately, following feedback from the public and workers.

“

Therefore, the Council of Ministers has decided that the contribution is no longer mandatory, but is implemented voluntarily, effective immediately.

Datuk Fahmi Fadzil, the Unity Government Spokesperson, announced that Prime Minister Datuk Seri Anwar Ibrahim raised the issue of public feedback concerning the 0.75% salary contribution for the scheme under the Social Security Organization (Perkeso) during a cabinet meeting. Consequently, the Council of Ministers decided to make the contribution voluntary rather than mandatory.

Previously, the Minister of Human Resources, Datuk Seri R. Ramanan, had defended the contribution rate, stating it was significantly lower than most market insurance products and should be viewed as a small investment for comprehensive protection. The Lindung 24 Jam scheme was introduced to provide protection for workers and their families against accidents or calamities occurring outside working hours.

“

Thus, the Council of Ministers today decided that the contribution is no longer mandatory, but is implemented voluntarily, effective immediately.

Further clarifications and details regarding this decision will be released by the Ministry of Human Resources (KESUMA). The shift to a voluntary contribution model aims to address concerns about the financial burden on employees while still offering the option of accident protection.

“

The contribution rate for the 24-Hour Accident Insurance Scheme is much lower than most insurance products available in the market.