Corporate Personal Accident
What Corporate PA covers that SOCSO doesn't
SOCSO is a floor, not a benefits package — and in 2026 the floor moved.
Every Malaysian employer already provides accident protection, whether they think of it that way or not: SOCSO contributions are mandatory. The question a Corporate Personal Accident policy answers is a different one — what happens to an employee, and to the employer's obligations, when the statutory benefit is not enough.
Corporate PA is a group policy taken out by the company itself: the company is the policyholder and the insured entity, and its employees are the persons covered under that one policy. It pays a lump sum on accidental death or permanent disablement, usually as a multiple of annual salary, generally on a 24-hour worldwide basis rather than only during working hours. An employee does not buy it, hold it or renew it — which is what separates it from the individual Personal Accident cover on the Personal Protection side of this blog.
One note before the detail: SOCSO's schemes are run by PERKESO directly. We do not sell, distribute or administer them, and nothing here is advice on whether to contribute — what we arrange is the private cover an employer may choose to place on top.
What changed in 2026
SOCSO's coverage was extended in 2026 through the Employment Injury Scheme for Non-Work Accidents, Lindung 24 Jam, which took effect on 1 June 2026 and covers accidents outside working hours within Malaysia — at home, on the road outside work travel, during personal activities.
Two details matter for employers:
- Contribution rates — Contributions were set at 0.75% of wages, rising to 1.0% over the following three years and to 1.25% from the sixth year, with a wage ceiling of RM6,000.
- Who it applies to — Following a Cabinet decision in July 2026, Lindung 24 Jam remains mandatory for foreign workers but is voluntary for local employees. That change is what turns this into a live benefits decision rather than a payroll footnote: for local staff, an employer now has to decide what to provide.
Where the statutory scheme stops
A statutory scheme is designed to be universal and affordable, which necessarily means it is capped. Employers typically look at Corporate PA where:
- Earnings exceed the ceiling — Benefits calculated on a capped wage understate the loss for anyone earning above it.
- Cover needs to follow the employee overseas — SOCSO's non-work scheme covers accidents within Malaysia; staff who travel for work need cover that travels with them.
- The workforce isn't all employees — Contractors, directors and gig or project-based workers may sit outside the scheme entirely.
- The company has a contractual obligation — Employment contracts, union agreements and tender conditions frequently specify a death-and-disablement benefit that statutory cover alone does not meet.
What a Corporate PA policy typically includes
- Accidental death and permanent disablement — Total or partial, paid as a lump sum.
- Medical expenses — Reimbursement of treatment costs following an accident.
- Weekly benefits — Income support during temporary disablement.
- Optional extensions — Repatriation, funeral costs, motorcycling, and cover for specified occupational hazards.
Cover is normally arranged by category — for example, all management on one multiple of salary, all site staff on another — which keeps administration simple, since individuals do not need to be named as they join and leave.
Questions to settle before you go to market
- Who is in scope — Employees only, or contractors and directors as well?
- How is the benefit set — A multiple of salary, or a flat sum per category?
- When does cover apply — 24 hours worldwide, or only during working hours and work travel?
- Are any occupations higher-risk — Policies class some trades differently, and it changes both terms and price.
- How does this sit with Group Hospitalisation — They pay for different things — one covers treatment, the other pays a lump sum — and they are usually reviewed together.
Corporate PA is priced on your headcount, occupations and the benefit levels you choose, so there is no standard rate. Send us your census and what you want to provide, and we will come back with a comparison.