By Chan YM
Social Security Organisation’s (Socso) Self-Employed Scheme Division head Ismail Abi Hashim says only 5% of taxi, Uber and Grab drivers in the country are registered under the Self-Employed Employment Injury Scheme.
The Self-Employment Social Security Act 2017 was enforced last June, requiring all taxi and e-hailing drivers to be registered under the government’s social security net plan.
Last May, Socso CEO Mohammed Azman Aziz Mohammed was reported to have said, “We hope to complete the whole process by the end of June as the act officially comes into force on June 1.”
However, of the estimated 100,000 drivers in the industry, only 120 signed up to pay online within the first week, and drivers were given until the end of last year to make their contributions. Those who failed to do so could be barred from renewing their Public Service Vehicle licence.
They could also be charged in court and, if found guilty, fined up to RM10,000, jailed up to two years or both.
Earlier, taxi drivers had demanded Socso benefits, naively thinking that they would be given free of charge. They now have to cough out between RM157.20 and RM592.80 a year.
After a cheque presentation ceremony to the next-of-kin of a taxi driver who was killed in a road accident on March 3, Ismail told a media conference that only about 3,300 taxi and e-hailing drivers were registered under the Self-Employed Employment Injury Scheme.
Ismail was reported to have said: “The awareness among taxi drivers is still not at the level we expected. We will approach them to explain the benefits while they are at work and in case of death while on duty.”
It appears that Socso did not do its homework well before introducing and imposing the Self-Employment Social Security Act 2017 on taxi and e-hailing drivers.
It should have established channels with taxi companies and associations, e-hailing operators, the Road Transport Department and Land Public Transport Commission to inform all drivers that registration is mandatory under the law, not optional.
But in all fairness, it should have been optional for the self-employed, just like voluntary contribution to the Employees Provident Fund. Moreover, those afraid of financial losses resulting from accidental injury have been paying for their own personal accident insurance (PAI).
The annual premium for PAI varies according to the insured amount, occupation and age. This insurance cover is available at any general insurance company and effective on the spot. As such, the better proposition is to allow drivers the option of Socso or PAI cover.
If not, Socso will have to haul tens of thousands of drivers to court for non-compliance with the Self-Employment Social Security Act 2017. Failing to do so would be making a mockery of the law it introduced.
Chan YM is an FMT reader.
The views expressed are those of the author and do not necessarily reflect those of FMT.