To meet Malaysia’s dynamic and evolving employee protection needs

To meet Malaysia’s dynamic and evolving employee protection needs

In recent years, Malaysians’ employment concepts have undergone great changes. The rise of the “gig economy” and innovative work models has upended people’s views on traditional employment. The “gig economy” and contract workers refer to those who work through online platforms or digital economy companies (DEC) for flexible, flexible and temporary freelance work opportunities.

Although this new employment model creates job opportunities, it also exposes employees to unique risks, especially in terms of occupational safety and employee protection.

There has been a sharp rise in accidents involving gig workers in recent years. According to the social insurance agency (Perkeso)The data,2022A total of accidents occurred among self-employed employees in 20181872starting, equal to every day5rise.and2021Year723Compared with the158.9%.These incidents, ranging from minor accidents to fatal accidents, show that gig workers are desperately lacking the protection mechanisms provided by traditional occupations, such as workers’ compensation and employer-provided insurance plans.1.

To address this problem, the Malaysian government has launched a number of programs to encourage workers in the informal sector, including gig economy workers, to register with the authorities and pay social insurance (SOCSO)fee. One of the plans provides incentives of up to 80% for SOCSO contributors under the Self-Employed Social Security Scheme, and the other appoints corporate agents to handle the payment of Self-Employed Persons Social Security Scheme (SKSPS) fees for these employees.

The affordability dilemma

Insurance plays a key role in protecting workers from the unexpected, but low-wage gig workers are often uninsured due to financial constraints.High monthly premiums weigh heavily on them, which explains why gig workers rarely choose to purchase modern financial products, such as insurance and investment products1.

For low-income groups in Malaysia, when immediate needs conflict with future protection, insurance is no longer an option.All over Malaysia60Thousands of employees working on e-hailing and motorcycle food and parcel delivery services, but only abouttwenty threeTen thousand people paid social insurance premiums (SOCSO).One item for more than400Research on e-hailing drivers and delivery people shows that76%There is no unemployment insurance,59%No retirement savings,59%No emergency fund,57%No medical insurance,37%There is no occupational injury coverage. This stark disparity illustrates the stark reality that most gig workers face when it comes to protection against misfortune or financial security.

Inclusive security concept

As the gig economy continues to grow in Malaysia, security has become key to a financial buffer, providing security and stability in the face of unforeseen challenges.The biggest concern for gig workers remains income instability, so solutions and products must be designed to provide them with efficient cash flow without disrupting their daily lives.2.

ChubbAfter realizing the special situation and wishes of gig workers in the e-hailing industry,A range of flexible policies and innovative solutions are customized to meet their unique needs, from motor insurance to personal accident protection.

Chubb and Grab Malaysia design the first personal accident insurance for e-hailing drivers and passengers

Leading change through collaboration

As one of Southeast Asia’s premier super apps, get to know everyoneGrabE-hailing drivers and delivery partners are key players in the social service industry, so they2018since years withChubbPartnering to launch innovative in-app protection solutions in Southeast Asia.passGrabdriver app,This collaboration is more than260Thousands of namesGrabProvided by driver partnersAccident, medical and other important insurance coverage.

In addition, MalaysiaGrab(Grab Malaysia)andChubbCooperation launchedGrab Daily Insurancethis product also complies with the regulatory requirements for e-hailing insurance policies while taking into account the driver’s financial situation.Grab Daily InsuranceAllows drivers to choose after logging into the apptwenty fourhours validity of daily insurance or takaful.

Recently,ChubbAlso with MalaysiaGrabTogether we have developed a number of different insurance products, including:

1. Group Personal Accident (PA): The first personal accident insurance for drivers and passengers in the ride-sharing industry, with zero deductible and no additional costs.

2. Personal Accident Plus Insurance Program(PA+): Designed forGrabAffordable insurance plans for drivers and delivery partners to protect them and their families anytime, anywhere.

3. Insurance Kemalangan RPG 24/7: Designed forGrabFoodGrabMartandGrabExpressPersonal accident insurance tailored by delivery partners.

Not only does this provide significantly improved levels of protection for gig workers of all types, but it also highlights the potential for positive reform when the industry comes together to pursue common goals and therefore improves the protection and wellbeing of those working in the sector.

As Malaysia’s job market continues to transform into the gig sector, there are growing calls for strong protection for gig workers. This dynamic landscape requires collaboration between government and the private sector.

To meet the evolving security needs of gig workers, it’s clear that enhancing employee security and well-being is critical.

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