PETALING JAYA: The rising rates of insurance premiums for e-hailing drivers not only burden the drivers but also threaten the competitiveness of the industry, says the Malaysian eHailing Association (GEM).
Raising concern over the matter, the association's chief activist Jose Rizal said the increase also affects the gig community as a whole.
"We would like to express its support for the concerns that have been voiced by various parties regarding the sudden increase in health insurance premium rates.
"We are of the view that this additional insurance premium rates of the e-hailing sector is not only putting pressure on the people in general but also affecting the gig worker community, especially e-hailing drivers.
"The rates for insurance premiums have increased sharply by over 40% every year without clear justification.
"This increase not only burdens the drivers but also threatens the competitiveness of the e-hailing industry as a whole," he said in a statement on Friday (Nov 29).
Jose claimed that in an engagement session with Bank Negara Malaysia (BNM), the association was informed that this increase occurred due to the liberalisation of the insurance industry and existing laws that allow insurers to set rates at will.
"We believe that this reason should not be used as a justification for allowing insurance companies to act arbitrarily without control and monitoring.
"If BNM itself admits that they cannot control this situation, who should be held accountable? Can we as citizens and gig workers just sit back and watch giant insurance companies continue to run amok?" he questioned.
Thus, the association is calling on the authorities to take measures to ensure the fairness of the insurance system in the country.
"We call on the authorities to re-evaluate the insurance liberalisation policy that gives too much freedom to insurance companies in determining premium rates.
"We urge them to establish a price control mechanism or set a reasonable annual increase limit to protect the people, especially gig workers who are increasingly stressed, as well as establish a more inclusive public consultation before any decision regarding insurance rate increases is implemented.
"We believe that this issue requires urgent attention to protect the welfare of the people and ensure fairness in the insurance system in Malaysia.
"GEM will continue to fight for the rights and welfare of e-hailing drivers and other gig workers on this issue," said Jose.
