Better to be safe than sorry

WE at the Social Security Organisation (Socso) would like to commend Mr Jason Quah from Kuala Lumpur for highlighting the importance of social security coverage for self-employed taxi and e-hailing drivers in a letter to The Star entitled, “Contribute for your own good”, published on March 19 (online at bit.ly/star_socso).

The decision by Mr Quah, an e-hailing driver, to contribute to Socso should be lauded. It shows that Mr Quah understands the benefits of social security coverage.

I am sure like all of us at Socso, other readers are also saddened to hear about the predicament of an e-hailing driver who was involved in a hit-and-run incident, as disclosed by Mr Quah. Although we deeply sympathise with the driver and his three young children, we cannot deliver Socso benefits to this unfortunate breadwinner and his dependants because he is not a Socso contributor.

The Self-Employed Employment Injury Scheme under the Self-Employment Social Security Act 2017 (Act 789) aims to protect the self-employed and those in the informal sectors against accidents or occupational diseases while at work as well as commuting accidents.

The Act, which took effect on June 1, 2018, has made it compulsory for self-employed taxi, e-hailing and bus drivers to register and contribute to Socso. Act 789 will be extended to other informal sectors soon.

We have repeatedly reminded self-employed taxi and e-hailing drivers as well as bus drivers to register and contribute to Socso as the welfare of their spouses and children would be taken care of should anything untoward happens to them while working. We are currently doing all we can to get self-employed drivers to sign up to the scheme voluntarily rather than taking action under the Act.

The annual contribution payment under the scheme, which is based on four options of insured monthly income, are RM157.20, RM232.80, RM442.80 and RM592.80. Socso has introduced some flexibility where the self-employed can make contribution payments at any Socso counter and make monthly instead of yearly payments.

It is wise for self-employed taxi, e-hailing and bus drivers not to delay contributing to Socso as accidents can happen anytime. No one is fully shielded or invulnerable from accidents and diseases, or even death.

Consider this scenario: A taxi driver is involved in an accident and suffers a broken leg; it would normally take between three and six months to recover. Younger patients might recover faster but it is drivers in their 40s and 50s who are most likely to have more family and financial commitments. If the self-employed driver is a Socso contributor when the accident befalls him, he will receive Socso benefits and medical aid during the recovery period. If he is not a Socso contributor, he has to depend on his savings during the off-work period.

Following complaints by drivers about one year pre-paid contributions, Socso now allows them to pay RM13.10 a month instead of the RM157.20 lump sum payment for the year.

With the RM13.10 monthly contribution, if the driver dies while at work, his dependants will receive RM940 monthly compensation. The wife will receive the survivors’ benefit for life and the children will receive the benefit until they reach 21 or until they complete their first degree. In addition to that, the scheme provides a RM2,000 funeral benefit.

For the same amount, if a driver has an accident that renders him 100% paralysed or bedridden, he will receive RM945 a month as a permanent disability benefit. His carer will also receive RM500 a month as a constant attendance allowance.

The scheme will pay the real amount of medical costs, while the children of Socso’s periodical benefit recipients are eligible for an education benefit.

Socso also provides medical devices such as wheelchairs, adult diapers, crutches, hearing aids and other equipment needed by benefit recipients.

All this with only a minimum contribution of RM13.10 a month.

If Socso contributors do not make any claims at all because they are lucky enough not to be involved in any work-related accidents or suffer from occupational diseases, their contributions will help their less fortunate peers. This is the underlying principle of Socso’s social security protection, where all contributors agree that their contributions collected in a solidarity fund is redistributed to contributors who suffer disability or invalidity and to contributors’ dependants in the case of death.

I believe that people should change their mindset about Socso’s social protection scheme. It is sad to see that drivers willingly pay for their car insurance but when it comes to getting themselves insured against accidents or occupational diseases, they are reluctant to commit as they see it as a burden. Both car insurance and social security are similar as they provide protection against mishaps; while car insurance includes third party coverage, theft, and fire, Socso provides protection against work-related accidents, diseases and death of the insured persons.

I would advise the self-employed to think about their families because the people who matter most in your life would be protected from hardship if the unexpected happens.

For a small amount of money, social security coverage provides, among others, financial relief for you and your family when it is needed most. It is better to be safe than sorry.

DR MOHAMMED AZMAN AZIZ

Chief Executive

Social Security Organisation (Socso)