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 reduce the amount between contributions and benefits. The main objective of this study is to discuss and describe the current issues and challenges of social insurance qualitatively. This method provides an overview of further understanding pertaining to the phenomena faced by Social Security Organisation (SOCSO) as administer social insurance in Malaysia.