Descriptive Research on SOCSO’s Invalidity Pension Scheme (IPS) Claims Payment
Mohd Zaki Awang Chek1, Isma Liana Ismail2, Nur Faezah Jamal3
1Mohd Zaki Awang Chek, Faculty of Computer and Mathematical Sciences, Center for Actuarial Studies, Universiti Teknologi MARA, Tapah, Perak, Malaysia.
2Isma Liana Ismail, Faculty of Computer and Mathematical Sciences, Center for Statistics and Decision Science, Universiti Teknologi MARA, Tapah, Perak, Malaysia.
3Nur Faezah Jamal, Faculty of Computer and Mathematical Sciences, Center for Statistics and Decision Science, Universiti Teknologi MARA, Tapah, Perak, Malaysia.
Manuscript received on 11 October 2019 | Revised Manuscript received on 20 October 2019 | Manuscript Published on 02 November 2019 | PP: 660-663 | Volume-8 Issue-2S11 September 2019 | Retrieval Number: B11040982S1119/2019©BEIESP | DOI: 10.35940/ijrte.B1104.0982S1119
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© The Authors. Blue Eyes Intelligence Engineering and Sciences Publication (BEIESP). This is an open access article under the CC-BY-NC-ND license (http://creativecommons.org/licenses/by-nc-nd/4.0/)
Abstract: Social insurance was introduced in Malaysia in 1971 through Social Security Organization (SOCSO). Herein, this study describes the increasing trend amounts of SOCSO’s IPS claims payment. This study analyzed IPS data from 2002–2014 to examine severity each of benefits offered such as Invalidity Pension, Survivors’ Pension, Constant Attendance Allowance, Rehabilitation Benefit and Funeral Benefit. Furthermore, the registered number of employers had increased to approximately 5% in 2013. This is because SOCSO officers all around Malaysia had been actively searching for employers who have yet to register to make contributions for their eligible employees. Additionally, the total number of IPS claims payment had steadily increased since 2002 to 2014. On average, the total claims payment of IPS increased at a rate of 10% every year. This study suggested that a large part of the increase in IPS claims could be explained by population which active contributors, and the increase result from equalization of IPS services across the country. In addition, it seems that the claims of low and high care levels depend on different factors. The increase in IPS claims should be monitored carefully to identify underlying factors and to ensure sustainability of the funding system.
Keywords: Invalidity Pension Scheme, Descriptive Analysis, SOCSO, Social Insurance, Claims Payment.
Scope of the Article: Social Networks