Some 100,000 self-employed taxi, Uber and Grab drivers will be covered under the Employment Injury Scheme after the Senate passed the Self Employment Social Security Bill 2017 on Thursday.
Deputy Human Resources Minister Datuk Seri Ismail Abdul Muttalib said the scheme would take effect on June 1 and all drivers registered with the Land Public Transport Commission (SPAD) are eligible.
He said the government had allocated a fund of RM60mil for the implementation of the insurance scheme.
"The scheme is first introduced to self-employed drivers. Gradually, it will be extended to other sectors such as farmers, traders, smallholders, fruit sellers and others.
"Our aim is to have everyone in the country covered by insurance," he told reporters after a flood relief presentation ceremony at SK Chenor here.
Ismail said a survey found that about 2.48 million people in the country qualify for the protection scheme.
He said self-employed drivers only have to contribute 1.25% of their monthly income.
"The annual contribution payment to Social Security Organisation ranges from RM157.20 (RM13.10 per month) to RM592.00 (RM49.40 per month) depending on the income of the insured.
"The scheme is a form of protection for the taxi drivers because should they be involved in an accident while on duty, they will be able to make a claim for compensation," he said.
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