Socso tells why so few cabbies register for insurance scheme

Only 7,774 of some 100,000 drivers have contributed to Socso as of Jan 7.

PETALING JAYA: Less than 10% of about 100,000 taxi and e-hailing service drivers have signed up for insurance coverage under a Social Security Organisation (Socso) scheme.

The main reason for this, according to Socso chief executive Mohammed Azman Aziz, is that many e-hailing and taxi drivers see insurance coverage as a burden instead of protection for themselves in the future.

Azman said this after noting that many of the drivers had failed to contribute to Socso despite calls by the government for all drivers to register for the scheme.

Based on a report by the human resources ministry seen by FMT, only 7,774 (7.7%) of about 100,000 drivers had contributed to Socso as of Jan 7 this year.

Human Resources Minister M 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 last year.

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

Azman said his team had continuously engaged with both taxi and e-hailing drivers to solve the issue and encourage them to register.

He said Socso would give another six months before imposing a penalty on those who failed to register for the insurance scheme.

“At the moment, our approach is still to inculcate awareness. We are still trying to get them to understand the importance of contributing.”

However, if they remained recalcitrant, he said, they would be issued compounds.

Kamaruddin Hussain, who leads a coalition of over 100 taxi associations called Gabungan Teksi Se-Malaysia, said it would be unfair for the government to impose a penalty on taxi drivers for failing to contribute to Socso.

“With the current conditions in the industry, it is almost impossible for us to contribute to Socso,” he said. “Taxi drivers are struggling to earn money to feed their family members, what more contribute to Socso.

“It is unfair and cruel if the government keeps asking or forces us to contribute but does not bother to look at the root problem.”

He urged the government to at least help taxi drivers get back their income by standardising the fare systems for taxi and e-hailing services.

If the government failed to create a level playing field between taxi and e-hailing services, he said, it should not expect cabbies to register for the scheme.

However, he acknowledged that the scheme was good and would benefit taxi drivers, many of whom he said would want to register if they had consistent incomes. - FMT