New scheme covers drivers but passengers still at risk

Should an accident occur, the passenger in a ride sharing vehicle could hold the government liable due to SPAD's delay in regulating Uber, Grab, says 4PAM president.

PETALING JAYA: While the driver in a ride sharing vehicle is protected under the insurance scheme to be introduced by the government, the passenger is left to fend for himself in the event of an accident.

The Public Transport Users Association of Malaysia (4PAM) said while the government should be commended for looking after the welfare of the drivers of ride-sharing services, such as Uber and Grab, the welfare of the passengers have been overlooked.

4PAM president Ajit Johl said the Land Public Transport Commission (SPAD) had yet to regulate the ride sharing industry even though it had been instructed to do so by the government.

“Today, if a ride sharing vehicle is involved in a accident, the passenger can hold the government liable to a certain extent,” he told FMT.

Ajit said this was because the government had failed to get SPAD to regulate the industry.

“We appeal to the government to act quickly and not delay the regulation of ride sharing services.

“SPAD’s inability to regulate the ride sharing industry proves that it does not have the capability to do so and it should be asked to report to the transport ministry immediately,” he said, referring to the fact that SPAD is currently under the prime minister’s department.

It was reported yesterday that more than 100,000 self-employed taxi as well as Uber and Grab drivers would be covered under the Employment Injury Scheme (EIS) when the Self Employment Social Security Bill 2017 becomes law this year.

Social Security Organisation (Socso) chief executive Mohammed Azman Aziz Mohammed had said that it would become compulsory for all self-employed taxi drivers to register with Socso.

He said the scheme covered medical, temporary and permanent disablement, funeral and dependent’s benefits (pensions), among others.

In a statement, Grab Malaysia head Sean Goh lauded the authorities for their foresight in introducing such a scheme for the benefit of drivers.

“We are more than willing to work with the relevant parties to know more and understand the scheme further, so as to subsequently communicate what we have learnt to our drivers.”

He added that Grab, as the leading ride sharing app, had always prioritised the welfare and safety of its drivers.

“Grab introduced the first and largest comprehensive personal accident insurance coverage in Southeast Asia for a ride sharing service that is applicable to our GrabCar drivers regionally and in relevant countries, GrabBike and passengers.

A Uber Malaysia spokesperson also welcomed the government’s initiative to further improve the welfare of its driver-partners by granting them access to additional insurance coverage as self-employed, independent contractors. -FMT