Drivers, riders welcome injury insurance, but divided on CPF contributions

Consumers also have mixed views over having to pay more to defray higher business costs

- Kok Yufeng Transport

In his eight years as a private-hire car driver, Mr Kelvin Lam, 49, has met with at least two accidents that put him out of action for a month or two.

In both cases, his lost income and medical bills were covered by personal accident insurance that he had been paying for.

Having benefited from such coverage, Mr Lam welcomed the news that platform operators must provide more than 70,000 gig workers with work injury compensation insurance at the same level as that for employees, after the passage of a new law on Sept 10.

Other ride-hailing drivers and freelance delivery workers interviewed were unanimous in their support for the insurance regime that will kick in as part of the new Platform Workers Act from 2025.

But not everyone was enthused about contributing a greater portion of their earnings to the Central Provident Fund (CPF) savings scheme under the law.

Consumers were also divided over whether they would be prepared to pay more to defray the higher business costs that will arise from the new measures.

Under the Act, higher CPF contribution rates will be compulsory for younger platform workers born from Jan 1, 1995, and optional for older workers.

Private-hire driver Richard Ong, 42, said he will not opt for the higher contribution rates as he already has a flat and believes CPF savings are not as crucial for his retirement.

Even so, he is worried about the impact the new CPF scheme will have on his earnings, especially since platform operators will also have to fork out their share of the contributions, which will hit their bottom lines.

Food delivery rider Muhammad Irfan Zakkaria, 21, said mandatory CPF contributions are essential for those in his age group and will help him save for future needs.