Introduction
Ride-hailing companies interfere with transport on a large scale while also offering millions of drivers economic opportunities. Southeast Asian e-hailing giant Grab has launched its own usage based e-hailing insurance coverage for its driver partners. Grab drivers only need to charge their Grab Daily Insurance coverage if they go online at rates as low as RM1 per day on the phone. For Grab Daily Insurance, if drivers come online and start driving for Grab, protection lasts for 24 hours. The exposure scope varies from insurer to insurer, as does the premium although the price range for the premium stays between RM1 and RM2. Drivers must ensure that their existing motor insurance plan is protected by one of Grab's insurance panels to opt in. After that, with a few clicks, drivers just need to opt-in to the app. When drivers have opted in, they can automatically deduct the fee for 24 hours when they go offline from their Credit Wallet.
Insurance coverage is triggered when the average premium is deducted. Grab drivers are required to obtain an e-hailing insurance add-on in addition to their existing private motor insurance plan under the new e-hailing regulations of the state. Grab Daily Insurance is a versatile and affordable solution and when they need it, drivers only need to pay for coverage. This removes the need to pay for an annual supplement that can cost up to RM400-500 a year, which may be a heavy financial strain for part-time drivers in particular. Drivers who have a motor insurance plan with the following insurers can opt into Grab Daily Insurance.
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As part of Grab's board of insurers and takaful owners, Allianz General Insurance Company (Malaysia) Bhd, AmGeneral Insurance Bhd, AXA Affin General Insurance Bhd, Berjaya Sompo Insurance Bhd, Chubb Insurance Bhd. Additionally, Etiqa General Insurance Bhd, Etiqa General Takaful Bhd, MPI Generali Insurans Bhd, MSIG Insurance (Malaysia) Bhd, RHB Insurance Bhd, Tokio Marine Insurans (Malaysia) Bhd, Zurich General Insurance Malaysia Bhd and Zurich Takaful Malaysia Bhd are also members of the group's panel of insurers and takaful operators.
Content
This study essentially, e-hailing drivers will be required to meet conditions similar to those imposed on traditional taxi drivers, such as showing a driver's identification card, having the car registered as a public service vehicle, passing regular vehicle inspections and having proper insurance coverage. Those who refuse to do so will be disqualified from renewing their license for public service vehicles and may also be prosecuted in court. When found guilty, they may be fined up to RM10,000, incarcerated for up to two years, or both. All private vehicle motor insurance plans expressly state the cover will be null and void if used to transport fare-paid passengers. No insurance protection for third-party damages is required by law without changes to existing policies. If so, e-hailing drivers would be in violation of the Road Transport Act 1987, and would therefore be vulnerable to massive lawsuits by those injured or kin of those killed. If they were at fault in a crash, they would have to pay substantial damages for damage to other cars, apart from their own complaint for harm being rejected.
Nevertheless, premium rates will only continue to be subject to tariff rates for third-party protection. As such, the Malaysian General Insurance Association, better known by its Malaysian acronym PIAM, should provide advice to the public unless it is barred by the Malaysian Competition Commission. While Grab and Uber enjoy a near-duopoly on the local market, customers can choose from about 15 local taxi apps, but they wouldn't be popular if taxi rates were higher than those of private cars. Limousine taxis and other vehicles run by tour firms are the untapped market. E-Hailing Vehicles are permitted for up to 10 passengers, allowing tour operators to license tour vans under Bas Persiaran (tour bus) in Peninsular Malaysia, with an additional option as Hire And Drive Vehicle in Sabah and Sarawak, or as a private vehicle under national e-Hailing. Excise duty would be excluded if licensed under Bas Persiaran but not as a private vehicle, although exemption would be given for vehicles produced or assembled by Proton or Perodua.
Under the old Motor Tariff, insurance premiums were very high, the prices were RM26, RM102.50 and RM122.10 for each RM1000 for private vehicles, limousine taxis and Hire And Drive vehicles respectively, and the gap for the first RM1000 was even greater. An app for tour vans and cars could be developed allowing passengers to book a pre-arranged particular vehicle, but in full compliance with e-hailing regulations. But it must first ensure that all e-healing vehicles are licensed in accordance with the law.
Grab Malaysia launched motor insurance based on use and takaful for its e-healing drivers. The group said in a statement today that Grab Daily Insurance (GDI) insurance and taka policy were specifically designed in collaboration with 14 leading Malaysian insurers and takaful operators. The group reported that 80 percent of their drivers are part-time drivers, who can supplement their income by an average of 37 percent, in addition to income from their daily jobs. Grab Malaysia Head of Country Sean Goh said the GDI would help ease the cost burden on its drivers to continue driving the e-healing project of the company.
GDI is the latest product introduced by insurance arm GrabInsure from Grab Financial Group, an online insurance marketplace set up by a joint venture between Grab and ZhongAn Technologies Insurance International. To be covered under the GDI, Grab drivers will need to opt-in to the GDI as part of their version of the Grab app and make sure their respective motor insurance or takaful company is on the group's board of insurers and takaful operators. Those who do not have an insurance policy on Grab's insurance board will have to cancel their current motor insurance plan and instead move to one of these panel insurers, Allianz (RM1.90/day), AXA (RM1.80/day), Berjaya Sompo (RM1.00/day), Chubb (RM2.00/day), Etiqa/Etiqa Takaful (RM1.36/day), AmAssurance & Kurnia Insurance (RM1.06/day), Liberty (RM1.80/day), MPI Generali (RM1.33/day), MSIG (RM2.00/day), RHB (RM1.30/day), Tokio Marine (RM1.70/day), Zurich/Zurich Takaful (RM1.33/day).
It ensures that there will be more drivers to get their PSV licenses. Core initiatives conducted by Grab include subsidizing the expense of driver licensing (training, clinical examination of cars, PSV licensing fees), works with authorities (online learning platform, co-organizing review halls) to reduce capacity limitations and to ease the application process by assisting in the compilation and delivery of documentation to JPJ on behalf of our drivers.
Conclusion
Innovative connectivity solutions now improve millions of people's flexibility and have the potential to deliver far greater benefits while meeting certain social goals. To realize the potential of these programs, the issues discussed in this document will need to be addressed by policy makers and regulators. In the spirit of extending the scope of these programs, the Committee offers the following recommendations with efficient and adequately sized community monitoring. It is the responsibility of public officials to promote transport systems that promote access while minimizing environmental costs. Sustainable mobility can be improved in part by fewer flights, shorter trips and more shared travel, which in turn can lead to decreased traffic, energy consumption and pollution. It is therefore in the public interest to implement public policies that affect the creation of advanced mobility services in order to achieve societal objectives. These policies could include promoting car-for-hire services, shared vehicles and micro-transit through economic incentives, better integration of private services with public services such as public transit.
The outcome should be to rethink the new proposed e-hailing industry regulations with a view to increasing new entry barriers and excessive price controls, as well as deregulating the existing taxi industry. The proposed regulations should be updated to remove the surge price cap and the operator fee limit, reduce entry barriers for new drivers by increasing the conditions for obtaining a PSV in particular the requirement for an additional driving course and ensuring electronic completion of the application process, simplify the vehicle inspection process by having other inspection facilities controlled by PUSPAKOM.
Innovative urban mobility technologies will continue to evolve, and academic and public policy groups will need to react quickly and in collaboration. The use of these services, which are yet to be established, would likely continue to transform passenger and freight travel. When connected and automated vehicles evolve and become popular, cooperation between these various stakeholders can become a precedent.
References
- E-HAILING REGULATION GRAB. (2019, JULY 9). Retrieved from GRAB: https://www.grab.com/my/blog/e-hailing-regulations/
- SHANKAR, A. C. (2019, AUGUST 6). THEEDGEMARKETS.COM. Retrieved from THEEDGEMARKETS.COM: https://www.theedgemarkets.com/article/grab-malaysia-launches-usagebased-motor-insurance-takaful-policies-ehailing-drivers
- TAN, J. (2019, AUGUST 6). Grab Now Has Its Own Daily E-Hailing Insurance. Retrieved from RINGGIT PLUS: https://ringgitplus.com/en/blog/Personal-Finance-News/Grab-Now-Has-Its-Own-Daily-E-Hailing-Insurance.html
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