Open AccessOVERVIEW OF SOCIAL INSURANCE IN MALAYSIA: INVALIDITY PENSION SCHEME (IPS)
Author(s) -
Mohd Zaki Awang Chek,
Isma Liana Ismail
Publication year - 2021
Publication title -
advanced international journal of banking, accounting and finance
Language(s) - English
Resource type - Journals
ISSN - 2682-8537
DOI - 10.35631/aijbaf.37003
Subject(s) - social security , unemployment , social insurance , actuarial science , income protection insurance , pension , key person insurance , business , private insurance , casualty insurance , self insurance , group insurance , insurance policy , general insurance , public economics , economics , economic growth , finance , health insurance , health care , market economy
Social insurance is a public insurance programme that provides protection against various economic risks such as loss of income due to sickness, old age, invalidity, death, or unemployment, where participation is made to be compulsory. Social insurance is regarded as a type of social security, and the two terms are sometimes used interchangeably. Social insurance programmes differ from private insurance in several ways. Firstly, the contributions are normally compulsory and may be made by the insured’s employer, by the state, as well as by the insured himself. Benefits are also not as strictly tied to contributions as is the case with private insurance. For example, to make the programmes serve certain social purposes, some contributors are included among the beneficiaries even though they may not have contributed for the required period of time. Next, benefits may be increased in response to the rising cost of living, which reduces the amount between contributions and benefits. The main objective of this study is to understand the contribution and benefits of social insurance coverage under the Social Security Organisation (SOCSO)’s Invalidity Pension Scheme (IPS).