Insurance scheme for self-employed taxi drivers

06 Feb 2017 / 12:24 H.

PETALING JAYA: Come June 1, all self-employed taxi drivers, as well as Grab and Uber drivers, will be covered under the Employment Injury Scheme (EIS) – just like other workers under the Contract of Service scheme.
These self-employed drivers will make a contribution rate of 1.25% of their insured monthly income.
The coverage will benefit over 73,000 self-employed taxi drivers and some 35,000 active Uber and Grab drivers.
Previously, self-employed taxi drivers had to buy insurance policies on their own.
Social Security Organisation (Socso) chief executive Datuk Dr Mohammed Azman Aziz Mohammed told theSun that it will be compulsory for all self-employed taxi drivers to register with Socso under the scheme.
"The annual contribution payment ranges from RM157.20 (RM13.10 a month) to RM592.80 (RM49.40 a month)," he said.
He said the extension of social security protection under the scheme for the self-employed begins with self-employed taxi drivers and individuals offering similar services in the country.
"The Human Resource Minister has agreed to include Uber and Grab drivers as well under this scheme," Mohammed Azman said.
"Self-employed taxi drivers, who are exposed to accidents or occupational diseases while at work, will be covered under the EIS and their dependents will have social security protection in the event of death," he said.
Mohammed Azman said medical, temporary and permanent disablement, funeral and dependent's benefits (pensions) are among the areas covered under the scheme for the self-employed taxi drivers.
Other benefits include constant-attendance allowance, education loan, physical and vocational rehabilitation facilities and Return to Work Programme.
"The constant-attendance allowance is something different and additional that Socso will be giving.
"When an employee becomes 100% or permanently disabled due to injuries in the course of his employment, he or she will be dependent on a caretaker whether it's the wife, mother or even a maid.
"The constant-attendance allowance is given to the caretaker," Mohammed Azman said.
The EIS will come into place with the enactment of a new law - the Self Employment Social Security Bill 2017.
Human Resource Minister Datuk Seri Richard Riot Jaem is expected to table the bill in the Dewan Rakyat in the next meeting, which is scheduled for March 6-April 6.
"The Act will allow Socso to administer the scheme for self-employed taxi drivers," Mohammed Azman said.
A grace period of two months will be given to these taxi drivers to register with Socso after the bill is passed in Parliament.
"Socso enforcement officers will go down to the ground to reach out to the taxi drivers and those offering similar services to inform them about the scheme and register them," he said.
A RM60 million allocation was announced under Budget 2017 for the implementation of the scheme for individual taxi drivers with a monthly income of up to RM3,000.
This coverage for the self-employed is in accordance with the principles of universal social justice under Article 23 Human Rights (Universal Declaration of Human Rights, the United Nations 1948) and the International Labour Organisation Convention C102 Social Security (Minimum Standards) 1952 and R202 Social Security Protection Floor Recommendation, 2012.

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