93% of e-hailing, taxi drivers don’t contribute to Socso, says Kula

There are currently about 100,000 e-hailing and taxi drivers, but only 7,000 contribute to Socso.

KUALA LUMPUR: About 93% of e-hailing and taxi drivers do not have insurance coverage although they are categorised as a high risk group, says Human Resources Minister M Kulasegaran.

He said the wives of some e-hailing and taxi drivers had come to him and cried as their husbands did not have insurance and they were worried about the consequences if something should happen to them.

“These are the things that must be taken into account,” he told reporters after chairing a meeting of the National Labour Advisory Council at the Parliament building today.

Kulasegaran said these drivers must contribute to the Self-Employment Social Security Scheme through Socso beginning next year.

He said there was probably low awareness among the drivers about the importance of being insured.

“Maybe they do not know that the quantum is small and about the benefits of having insurance, so we must educate them some more,” he added.

In order to boost the insurance uptake, he said, his ministry was seeking the cooperation of the transport ministry to work out a mechanism to bar drivers from renewing their licence if they did not contribute to Socso.

“However, before we implement it, we want to give them a bit of time (to decide).”

There are currently some 100,000 e-hailing and taxi drivers, only 7,000 of whom contribute to Socso.

Kulasegaran previously said all e-hailing and taxi drivers were required to register and make contributions under the Self-Employment Social Security Scheme, effective Nov 1.

He said Socso and the transport ministry had discussed measures to be taken should these drivers fail to do so.