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Employers' Liability Insurance
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Workmen’s Compensation Insurance shows how liability may attach to the Employer when the injury or disease is caused by an accident to the employee arising during the course of employment. For those categories of employees not protected by the Workmen’s Compensation Acts or SOCSO, liability at law still exists and the Employer can obtain indemnity under the Employer’s Liability Policy.
The Policy indemnify the employer (Insured) against liability at law for damaged and claimants cost and expenses in respect of bodily injury or disease sustained by any person under a contract of service or apprenticeship with contract of service or apprenticeship with the Insured whilst employed in Malaysia.
The employer can be held liable at common law if it can be proved that the injuries/disease sustained have been caused by the employer’s
- Personal negligence
- Failure to exercise reasonable care in the selection of competent employees
- Failure to provide proper machinery
- Failure to provide a safe place of work
- Failure to provide a safe system of work
A workmen has the option of either seeking relief or compensation under the Ordinance OR under Common Law. He CANNOT, however, elect to claim both. Common Law compensation can only be successful if negligence can be attributed to the employer and the quantum is based on the injuries sustained and loss of earning capacity.
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