PERKESO’s Round-the-Clock Accident Scheme Draws 6,330 Claims in First 90 Days, Revealing a Stark Insurance Gap Among Malaysia’s Lowest Earners
(Kuala Lumpur, 10 September 2026) — Across Malaysia’s sprawling urban centres and industrial corridors, millions of workers commute daily to jobs that end at the factory gate — but the risks they face do not. A delivery rider navigating midnight traffic, a cleaning contractor heading home after a late shift, a construction worker running weekend errands: none of these individuals are protected by their employment-based coverage the moment they clock out. For most, private insurance is either unaffordable or entirely absent. The Lindung 24 Jam accident scheme, administered by the Social Security Organisation (PERKESO), was designed precisely to close this protection gap — and its first three months of operation have revealed just how urgently that gap needed closing.
The Long-Standing Insurance Gap in Malaysia Continues to Trouble Low-Wage Workers
The coverage void facing Malaysia’s lower-income workforce is not a new problem — it is a structural one that has persisted across decades of economic growth. Data released by PERKESO Group Chief Executive Officer Datuk Seri Dr Mohammed Azman Aziz Mohammed confirms what social protection advocates have long warned: 74% of all claims filed under Lindung 24 Jam between June 1 and August 31, 2026, came from workers earning below RM3,500 per month — the segment least likely to hold any form of accident insurance outside the workplace.
This statistic carries real-world weight. A worker in this income bracket who sustains an injury during a Saturday afternoon errand, a Sunday family outing, or a late-night commute home has, until recently, had no systematic safety net to fall back on. Medical bills accumulate. Income stops. Families absorb the financial shock. The Lindung 24 Jam data, covering RM9.97 million paid out across 6,330 claims in its first 90 days, illustrates both the demand for this coverage and the scale of the void it fills.
Why Is the Insurance Coverage Gap So Hard to Solve? The Underlying Reasons Are More Complex Than Expected
At its core, the low insurance take-up rate among Malaysia’s working poor stems from a combination of affordability constraints, structural blind spots, and a fundamental misunderstanding of what social protection actually covers. Bank Negara Malaysia data cited by Dr Mohammed Azman shows that only 45.5% of Malaysians hold life insurance policies, while take-up among the B40 income group stands at approximately 4% — a figure that underscores how far private insurance markets have failed to serve the majority of the workforce.
In fact, the problem is compounded by how formal employment is structured. A salaried worker in Malaysia spends only about 33% of the year actively on the job, including time spent travelling to and from work. This means that for the remaining 67% — approximately 244 days per year — workers who rely solely on employer-linked coverage are entirely unprotected when accidents occur. A fall at home, a road accident during a weekend trip, or an injury sustained during an evening walk all fall outside the scope of conventional workplace insurance, leaving workers financially exposed for the majority of their waking lives.
Facing the Social Protection Gap, What Solutions Currently Exist on the Market?
Several mechanisms have historically been available to Malaysian workers seeking off-hours accident coverage. Private personal accident insurance policies offer one route, but premiums, documentation requirements, and claims processes can present significant barriers for lower-income earners. Group insurance plans provided by some larger employers extend limited coverage, but these arrangements are inconsistent across industries and typically lapse the moment employment ends.
Takaful and cooperative-based schemes offer another avenue, particularly within specific community or religious frameworks, but penetration remains low among the general working population. Meanwhile, means-tested social welfare programmes administered by the government address extreme poverty cases but are not designed to function as real-time accident compensation mechanisms for working adults. None of these existing solutions adequately addresses the 244 unprotected days that formal sector employees accumulate each year — a gap that private markets have not moved to fill at scale.
PERKESO’s Lindung 24 Jam Was Created to Address Precisely This Gap
Against this backdrop, PERKESO launched the Lindung 24 Jam scheme on June 1, 2026, extending social protection coverage to formal sector employees around the clock, regardless of whether an accident occurs during working hours, commuting, or personal time. The scheme operates under the Employees’ Social Security Act 1969 (Act 4) and applies the “Once In, Always In” principle — meaning workers who remain enrolled retain continuous coverage as long as they meet the relevant statutory conditions.
As a result of this design, Lindung 24 Jam fills the specific structural gap that neither private insurance nor workplace-linked coverage has historically addressed. The scheme recorded 6,330 claims and paid out RM9.97 million in its first three months of operation alone — figures that validate both the demand for round-the-clock accident protection and the scheme’s operational readiness to deliver it.
Dr Mohammed Azman also cautioned against a common misconception among higher-income workers. “Don’t think that because you earn RM10,000 and can afford insurance, you don’t need social protection,” he stated, drawing a clear distinction between commercial insurance products and statutory social protection frameworks. The two serve different functions and are not interchangeable.
The grace period for opting out of Lindung 24 Jam ended on August 31, 2026. Workers can no longer withdraw from the scheme but retain the option to rejoin at any time through the official portal at lindungfaedah.perkeso.gov.my. Close to 10,000 workers who had previously opted out have already re-enrolled, according to PERKESO.
Notably, opt-out rates were highest among lower-income workers, who made up 52% of those who chose to leave the scheme — a demographic that simultaneously filed 74% of all claims, highlighting the disconnect between perceived need and actual vulnerability. Geographically, opt-outs were concentrated in Selangor, Kuala Lumpur, and Putrajaya, which together accounted for 53% of withdrawals, followed by Johor at 11% and Penang at 9%.
Frequently Asked Questions About Lindung 24 Jam and PERKESO
What is Lindung 24 Jam and who administers it? Lindung 24 Jam is a round-the-clock accident protection scheme administered by PERKESO (the Social Security Organisation of Malaysia). It extends social protection coverage to formal sector employees 24 hours a day, covering accidents that occur outside of working hours, including during personal activities and weekends.
How many claims has Lindung 24 Jam received since it launched? Lindung 24 Jam received 6,330 claims and paid out RM9.97 million between June 1 and August 31, 2026 — its first three months in operation.
Which group of workers filed the most claims under Lindung 24 Jam? Workers earning below RM3,500 per month filed 74% of all Lindung 24 Jam claims during the scheme’s first three months, making low-wage workers the primary beneficiaries of the round-the-clock accident protection.
Can workers still opt out of Lindung 24 Jam? No. The grace period for opting out of Lindung 24 Jam ended on August 31, 2026. Workers who remain in the scheme continue to receive coverage under the “Once In, Always In” principle. However, workers who previously opted out can rejoin the scheme at any time through lindungfaedah.perkeso.gov.my.
Is private insurance a substitute for social protection under Lindung 24 Jam? No. PERKESO Group CEO Datuk Seri Dr Mohammed Azman Aziz Mohammed explicitly stated that private insurance and social protection are fundamentally different instruments. Private insurance and PERKESO’s statutory social protection serve distinct purposes and should not be treated as interchangeable, even for higher-income earners.
Why are low-wage workers more likely to both file claims and opt out of Lindung 24 Jam? Low-wage workers earning below RM3,500 per month filed 74% of Lindung 24 Jam claims but also made up 52% of those who opted out of the scheme. This reflects a gap between perceived need and actual vulnerability — and is compounded by the fact that only approximately 4% of B40 workers hold life insurance, leaving the vast majority without any alternative coverage.
How many days per year are formal sector workers unprotected by standard employment-linked coverage? A formal sector worker in Malaysia spends only 33% of the year on the job, including commuting time. This means workers are potentially unprotected for approximately 244 days per year — or 67% of the calendar year — when accidents occur outside working hours or during personal time.
Lindung 24 Jam Marks a Structural Shift in How Malaysia Approaches Worker Protection
The first-quarter data from PERKESO’s Lindung 24 Jam scheme presents an unambiguous picture: the workers who need accident coverage most are the same workers historically least likely to have it, and they are now filing the majority of claims under a scheme that many in this group had initially chosen to leave. With the opt-out window closed and re-enrolment already underway, the scheme is positioned to become the primary safety net for Malaysia’s formal sector workforce during the 244 days each year that conventional workplace protection does not reach.
For more information on PERKESO’s Lindung 24 Jam scheme and social protection services, readers may contact:
PERKESO (Social Security Organisation Malaysia) Website: lindungfaedah.perkeso.gov.my Official Portal: perkeso.gov.my Address: Menara PERKESO, 281 Jalan Ampang, 50538 Kuala Lumpur, Malaysia Phone: 1-300-22-8000 Email: enquiry@perkeso.gov.my