Materia Medica Malaysiana

Record RM754m paid out by Socso last year

Last year, Socso paid out more than ever before to victims of industrial accidents and those injured travelling between home and workplace.

Socso chief executive officer Datuk Ng Teck said the RM754 million disbursed last year in accident benefits was an increase of 13.3 per cent over the RM722 million paid out in 2002, and included RM166 million for those involved in accidents while commuting to and from workplace.

He said since the Occupational Safety and Health Act came into force in 1996 and stringent enforcement began in 2001, there had been a drop in the number of workers involved in such accidents.

"However, errant employers who do not strictly abide by the legislation's requirements have resulted in accidents in workplaces," he said.

Under Section 30 of the Act, it is compulsory for employers with more than 40 workers to set up a safety and health committee. Non-compliance can result in a fine of RM5,000 or six months' jail, or both.

The Act also provides for a fine of RM50,000 or jail not exceeding two years, or both, for employers who do not ensure the safety, health and welfare of their employees at worksites.

Ng said many industrial accidents could be averted if employers adhered to the Act and ensured safe working environments for their workers, including providing protective gear for those operating heavy machinery or doing hazardous work.

Last year, Socso collected RM1.143 billion from its 4.4 million active contributors, of which RM754 million was paid out to 241,038 beneficiaries. Socso has a total of 9.9 million registered contributors.

Ng said Socso had raised the salary ceiling of contributors from RM2,000 to RM3,000 a month.

"Our study revealed some 700,000 contributors have reached the RM2,000 ceiling and thus, to ensure they are protected, the ceiling has been increased to RM3,000," he said, adding that amendments were also being made to the Employees' Social Security Act 1969 to address controversial issues such as the definitions of employment injury and commuting accidents.

He said as unclear definitions had led to delayed payments, guidelines had been drafted to be presented at the Socso Appellate Board meeting on April 29.

Clearer definitions would help avert abuse by contributors and also specify coverage of injuries sustained in job-related activities and during functions organised by employers.

He said Socso allocated between RM1 million and RM2 million a year for activities organised by the Malaysian Trades Union Congress, Malaysian Employers Federation and non-govern-mental organisations to create awareness among employers and workers of the importance of reducing industrial and commuting accidents.