Workmen'S Compensation Act 1952 · Updated to 22 Jul 1982 · Part II · Workmen’S Compensation for Injury
26. Compulsory insurance by employer
Feedback & supportEvery employer shall insure and keep himself insured with an insurer within the meaning of the *Insurance Act 1963
employer
“employer” includes the Government of Malaysia and the Governments of each of the States; in respect of civilian employees engaged in Malaysia or in Singapore of any visiting force lawfully present in Malaysia or of any person in the civil employment of the Government of any Commonwealth country, whose contract of service was made in Malaysia or in Singapore, the Government of that Commonwealth country; any local authority; any person or body of persons whether statutory or incorporated or not; the legal personal representative of a deceased employer; and in relation to a person employed for the purpose of any game or recreation and engaged or paid through a club, the manager or members of the managing committee of the said club: Provided that where the services of a workman are temporarily lent or let on hire to another person by the person with whom the workman has entered into a contract of service or apprenticeship, the latter shall, for the purposes of this Act, be deemed to continue to be the employer of the workman whilst he is working for that other person;
[Act 89] in respect of every liability which he may incur under this
Act to any workman employed by him.
workman
“workman”, subject to the proviso to this subsection, means any person who has, either before or after the commencement of this Act, entered into or works under a contract of service or of apprenticeship with an employer, whether by way of manual labour or otherwise, whether the contract is expressed or implied or is oral or in writing, whether the remuneration is calculated by time or by work done and whether by the day, week, month or any longer period: Provided that the following persons are excepted from the definition of “workman”— (a) any person employed otherwise than by way of manual labour whose earnings, calculated in accordance with section 9, exceed five hundred ringgit a month; (b) a person whose employment is of casual nature and who is employed otherwise than for the purposes of the employer’s trade or business, not being a person employed for the purposes of any game or recreation and engaged or paid through a club; (c) a domestic servant; (d) any person who is a member of the armed forces or of any visiting force lawfully present in Malaysia; (e) any person in the civil employment of Her Britannic Majesty’s Government in the United Kingdom, or in any other country of the Commonwealth whose contract of service was not made in Malaysia nor in Singapore; (f) a person employed, or selected for employment, in a civil capacity by the Government of Malaysia or by the Government of any State or by any local authority before 1 April 1953 in the application of this Act in Peninsular Malaysia, and before 1 January 1957 in the application of this Act in Sarawak where, in consequence of injury received by any such person in the discharge of his duties, a pension, gratuity or other allowance which would not be payable if such injury were received otherwise is paid to him or, in the case of his death, to any of his dependants as defined in this Act under any written law for the time being in force in Malaysia or any part thereof providing for the grant of such pension, gratuity or other allowance (this paragraph shall not apply in Sabah); (g) any police officer, and any other person engaged to perform police duties in accordance with the provisions of any written law while so performing such duties; (h) an out-worker; (i) a tributer; (j) any member of the family of the employer who dwells with him in his house; *(k) any class of persons whom the Minister may declare not to be workmen for the purposes of this Act. *NOTE—see P.U.…
*NOTE—Insurance Act 1963 [Act 89] has since been repealed by Insurance Act 1996 [Act 553]–
see Act 553, Schedule.
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Workmen’s Compensation
Notwithstanding subsection (1) the Minister may by order approve an insurance scheme, and upon the coming into force of the order, every employer shall insure and keep himself insured under the approved insurance scheme in respect of any liability which he may incur under this Act to every workman employed by him.
For the purposes of subsection (2) “approved insurance scheme” means a scheme underwritten by an insurer registered under the Insurance Act 1963 and established in a manner approved by the Minister.
insurer
“insurer” includes any insurance society, association, company or underwriter;
In the event the Minister revokes an order made under subsection (2) the provisions of subsection (1) shall apply.
Any employer who for the purpose of defraying or partly defraying the cost of insurance in respect of his liability to pay compensation under this Act makes any deduction from the earnings of a workman in his employment shall be guilty of an offence and shall be liable on conviction to a fine not exceeding five thousand ringgit or to imprisonment for a term not exceeding one year or to both.
Any employer who fails to insure himself in accordance with this section shall be guilty of an offence and shall be liable on conviction to a fine not exceeding twenty thousand ringgit or to imprisonment for a term not exceeding two years or to both.