Foreign Worker Insurance Guarantee

Foreign Worker Insurance Guarantee

FWIG is a security deposit required by the Immigration Department from employer for the employment of foreign workers (excluding Domestic Maid) under the Regulation 21 of the Immigration Regulation.

It serves as a guarantee to the Immigration Department to cover the repatriation expenses in the event of deportation of the foreign worker back to his/her country of origin due to various reasons, such as breach of the Immigration Act, involve in illegal activities and many more.

Cash-Before-Cover (CBC)

The Company shall receive payment (i.e. Premium and Cash Collateral) before the IG is release.

Limit Per Guarantee

The maximum IG that an insurer can underwrite is RM250,000.00 per employer.

Letter of Indemnity (LOI)

LOI in the approved wording must be obtained from the Employer. All LOI must be dated and signed prior to or concurrent to the date of issue of the IG. Otherwise, the validity of the indemnity and/or third party guarantee(s) could be in doubt.

Cash Collateral

For IG in excess of RM25,000.00, employer is required to provide cash collateral security of not less than 20% of the sum insured of the IG in addition to the LOI/ counter guarantees.
NationalityGuarantee Amount (RM) Per Worker
Bangladesh 500
Canada 1,500
China 1,500
Hong Kong 500
India 750
Indonesia 250
Myanmar 750
Turkmenistan 1,500
Kazakhtan 1,500
Cambodia 250
Nepal 750
Pakistan 750
Philippine 1,000
Sri Lanka 750
Taiwan 1,000
Thailand 250
Vietnam 1,500
Uzbekistan 1,500
Las 1,500
Minimum Premium RM50.00 per Insurance Guarantee
Minimum Rate 1% per annum on Insurance Guarantee Sum
Stamp Duty RM10.00 per Insurance Guarantee
Stamping Fee RM10.00 per Indemnity
Commission 10%
Interest Earned on Collateral Security Provided Minimum of 50% of the prevailing interest rate from date of receipt of cash collateral above RM10,000.00 is to be refunded to the employer.

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