Kuala lumpur: Some 8.5 million workers, or 87.6 per cent, remain enrolled in the Social Security Organisation's (PERKESO) LINDUNG 24 JAM Scheme, reflecting the majority's awareness of the importance of social security protection beyond working hours. PERKESO Group chief executive officer Datuk Seri Dr Mohammed Azman Aziz Mohammed stated that this figure indicates workers' confidence in protection extended beyond working hours, particularly against the risk of accidents that could occur at any time.
According to BERNAMA News Agency, the LINDUNG 24 JAM Scheme, introduced on June 1, aims to extend protection to workers who suffer accidents unrelated to their employment. Mohammed Azman explained that the contribution rate in Malaysia, at 0.75 per cent, is among the lowest in the region compared to countries like Indonesia, Myanmar, Japan, and South Korea, where rates are significantly higher. He emphasized that social protection differs from private insurance as it acts as a crucial safety net to prevent workers from falling into poverty.
The scheme's effectiveness is evident, with PERKESO receiving 6,330 claims in its first three months, totaling RM9.97 million in benefits paid. These payments cover a range of benefits, including temporary and permanent disablement benefits, medical expenses reimbursement, funeral benefits, dependants' benefits, and rehabilitation equipment and implants.
Mohammed Azman expressed concern over the 12.4 per cent of workers who opted out of the scheme, particularly those earning below RM3,500, who often lack private insurance coverage. He highlighted that the largest group opting out is concentrated in Selangor, Kuala Lumpur, and Putrajaya, followed by Johor and Penang. This situation places these workers in a high-risk group vulnerable to financial shocks from accidents outside working hours.
Additionally, Bank Negara Malaysia (BNM) data for 2024 revealed that only 45.5 per cent of Malaysians have life insurance, with participation among the B40 group much lower, at around four per cent. Mohammed Azman urged awareness of the risks and the importance of coverage in safeguarding against unexpected financial hardships.