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Social insurance was introduced in Malaysia in 1971 through Social Security Organisation (SOCSO). SOCSO administer 4 schemes such as Employment Injury Scheme (EIS), Employment Insurance Scheme, Self- Employment and Invalidity Pension Scheme (IPS).
The main objective of this study to estimate the severity of SOCSO’s IPS from 2019 till 2023 by using single linear regression. Statistically, the total IPS’s claims payment had steadily increased since 1971 to 2014. On average, the total claims payment 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.
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In-Text Citation: (Chek et al., 2021)
To Cite this Article: Chek, M. Z. A., Ismail, I. L., & Jamal, N. F. (2021). Estimating Severity of SOCSO’s Invalidity Pension Scheme (IPS). International Journal of Academic Research in Business and Social Sciences, 11(4), 618-625.
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