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Jul 2020

Malaysia: Uber, Grab & taxi drivers to be covered by work injury plan

Source: Asia Insurance Review | Mar 2017

More than 100,000 self-employed cabbies as well as Uber and Grab drivers will be covered under the Employment Injury Scheme (EIS) when the Self Employment Social Security Bill 2017 becomes law this year. The new law is set to take effect on 1 June.
   The coverage will benefit over 73,000 self-employed taxi drivers and some 35,000 active Uber and Grab drivers.
   Social Security Organisation (Socso) Chief Executive Mohammed Azman Aziz Mohammed told The Sun Daily that it will be compulsory for all self-employed taxi drivers to register with Socso under the scheme.
   The cabbies will make a contribution of 1.25% of their insured monthly income and their payment will range from MYR157.20 (US$35.33) to MYR592.80 a year. 
   “Self-employed taxi drivers, who are exposed to accidents or occupational diseases while at work, will be covered under the EIS and their dependants will have social security protection in the event of death,” he said.
   He also said that medical, temporary and permanent disablement, funeral and dependent’s benefits (pensions) were among the areas covered under the scheme. Other benefits include constant-attendance allowance, education loan, physical and vocational rehabilitation facilities and the Return to Work Programme.
   The Bill giving effect to the EIS is scheduled to be tabled in Parliament this month.
   Separately, ride-hailing service GrabCar assured its drivers and passengers that they are covered by personal accident insurance in the event of an accident. Grab Malaysia head Sean Goh said the insurance scheme was launched last year at no extra charge to passengers.
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