E Hailing Insurance: What Is It And What Are The Options?

The e-hailing industry has grown tremendously in Malaysia over the past few years.

Millions frequently use these on-demand platforms to travel quickly, conveniently, and affordably. Many individuals have also taken up driving for e-hailing apps as an income source, attracted by the flexibility and ability to work independently.

However, ridesharing services have exposed additional risks and liabilities for e-hailing drivers that need to be sufficiently covered by traditional private car insurance.

Recognising this gap, the government has mandated that all e-hailing drivers obtain specialised commercial e-hailing insurance policies before providing services. Driving without appropriate insurance is illegal and leaves drivers exposed.

Whether you are an e-hailing driver or a consumer of such a service, all Malaysian should know about e-hailing insurance.

This includes its importance, coverage provided, top providers in the market, cost factors, tips for getting protected, and more. Whether you drive for Grab, Gojek, or any other platform, ensure you have the facts on e-hailing insurance.

What Is An E Hailing Insurance?

E-hailing insurance is commercial motor insurance explicitly designed to cover e-hailing drivers, their vehicles, passengers, and third parties. It protects against liabilities that may arise when providing e-hailing services.

Here are some critical points about e-hailing insurance:

• It is an add-on policy on top of your regular private motor insurance. Most insurers offer it as an endorsement or rider.
• It covers you precisely when your private vehicle provides e-hailing services and carries paying passengers.
• Your regular private motor insurance will NOT cover you for e-hailing activities deemed commercial use.
• E-hailing insurance covers the entire process: when your car is on duty, en route to pick up a passenger, and transporting a passenger.
• The premiums are generally more expensive than private motor insurance since the risks are higher.
• E-hailing drivers must possess a PSV licence and e-hailing insurance before providing services. Driving without it is considered illegal.

In summary, e-hailing insurance gives drivers specialised protection tailored for conducting e-hailing activities commercially using a private vehicle. It covers risks that regular private motor insurance policies do not.

Common Coverages in E Hailing Insurance

E-hailing insurance policies offer drivers comprehensive protection by bundling multiple types of coverage into one package. While the specific inclusions may vary slightly between providers, most standard e-hailing policies on the Malaysia market consist of these key coverage types:

Loss or Damage to Your Own Vehicle

E-hailing insurance provides extensive coverage against loss or damage to your vehicle arising from accidents, mishaps, or malicious acts while providing ride-sharing.

Damage protection typically covers:

• Collision damage – This covers the cost of repairing your vehicle damaged due to a collision with another vehicle or stationary object while e-hailing.
• Overturning damage – covers repair costs if your vehicle overturns or flips due to an accident.
• Impact damage – Covers repair cost arising from accidental impact against an object, road debris, or driving into a drain or ditch.
• Fire damage – Covers repair cost if your vehicle catches fire due to determinable causes like an electrical fault, engine overheating, etc.
• Theft of vehicle – Covers compensation for your car being stolen while using it for e-hailing.
• Break-in damage – Covers repair cost for damage from attempted theft break-ins like smashed windows, slashed seats, etc.
• Flood damage – Covers repair cost if flood waters damage the vehicle during e-hailing usage.
• Typhoon, storm damage – Covers repair costs arising from damages by heavy rains and strong winds during typhoons.
• Landslide, subsidence damage – Covers repair cost if landslides, ground sinkage, damaged vehicle.
• Vandalism – Covers repair costs arising from deliberate, malicious damages inflicted by third parties, like scratched paint, dented panels, and slashed tires.
• Windscreen, windows, and mirrors damage – Additional cover for repair/replacement cost of damaged windscreen, windows, side mirrors, headlamps, and tail lamps.
• Towing fees – Reimburses the cost of towing your e-hailing vehicle post-accident, up to a limit like the first 50km.

In essence, own damage coverage provides reimbursement for the costs of repairing or replacing your vehicle that is damaged while ride-sharing.

It provides financial assistance in restoring your car to pre-accident condition. Thus, you won’t need to incur hefty repair bills yourself.

Personal Accident Injury and Death

Besides, the insurance provides coverage for a driver who suffers bodily injury, disability, or death due to an accident while operating the e-hailing vehicle.

This personal accident coverage for drivers typically includes:

• Death – Lump sum compensation payout to nominated beneficiaries in the event of the death of the e-hailing driver within 12 months of the accident. The payout amount is usually between RM30,000 to RM50,000.
• Permanent disability – Lump sum compensation if the accident results in permanent total or partial disability for the e-hailing driver within 12 months. It covers conditions like loss of limbs, vision, hearing, or speech impairment. Payout is typically around RM50,000.
• Temporary disability – Weekly income replacement for the duration the e-hailing driver cannot work due to temporary disablement from accident injuries. They are usually paid for a maximum of 104 weeks.
• Hospital income – Provides daily hospital cash allowance for each day the e-hailing driver is awarded in hospital for treatment of accident injuries—typically RM100 – RM200 per day up to 30 to 60 days.
• Medical expenses – Reimburses the expenses incurred in treating the e-hailing driver’s accident injuries. Includes hospital and surgical fees, ambulance fees, physician charges, physiotherapy, and more. The reimbursement limit is usually RM5,000 – RM10,000.

In essence, personal accident coverage provides crucial protection to the livelihood of the e-hailing driver in case of disabling or fatal injuries suffered in an accident while ride-sharing. It gives much-needed reassurance and income protection.

Liability to Third Parties

Aside from vehicle coverage and personal injury, you will also need protection against third-party liability.

The insurance will shield you from vast financial liability that can arise if you cause injury, death, or property damage to a third party during an accident.

It provides coverage for:

Third-Party Bodily Injury

It covers bodily injury or death suffered by a third party (i.e., someone other than you or your passengers) caused by your e-hailing vehicle during an accident.

Scope includes:

• Covers medical expenses incurred by the third party to treat the injury.
• Covers loss of income suffered by the third party if the injury results in temporary or permanent disability.
• Covers pain and suffering compensation.
• Covers death compensation payout to next-of-kin if the accident results in the death of the third party.
• Typically provides an unlimited limit of coverage.

Third-Party Property Damage

It covers the repair or replacement cost of damages caused to a third party’s vehicle or property due to an accident involving your vehicle. For example:

• It covers repairing a third party’s car that collided with your vehicle.
• It covers the cost to repair or replace a third party’s damaged property like a fence, wall, guardrail, etc.
• May provide coverage on a first-loss basis without deduction of excess.
• It usually comes with a high limit, typically RM3 million.

So, in essence, third-party liability coverage fully protects you against massive claims that can potentially arise from causing bodily injury, death, or property damage to others in an e-hailing accident. It is one of the most crucial protection components in an e-hailing policy.

Legal Liability to Fare-Paying Passengers

Now that you’ve got yourself and your third-party covered, you will also need insurance concerning the fare-paying passengers.

Luckily, all e-hailing insurance protects you against claims from passengers who suffer injury or death while transported in your e-hailing vehicle.

This coverage includes:

Passenger injury or death

Provides coverage if a passenger is injured or dies in an accident while in your e-hailing vehicle. Usually covers:

• Medical expenses incurred by the passenger for injury treatment
• Loss of income suffered by a passenger if the injury causes disability.
• Pain and suffering compensation
• Death compensation payout to next-of-kin
• Typically covers up to RM10,000 per passenger, unlimited total aggregate.

Liability from passengers’ negligence

Provides coverage if a passenger sues you for damages caused by their negligent behaviour while in your vehicle. For example:

• A passenger opens the door negligently, causing a passing motorcyclist to crash.
• Passenger vomits in the vehicle due to intoxication, damaging interiors.
• The passenger smokes in the no-smoking vehicle, causing a fire.
• Covers your liability as a vehicle operator for damages arising from a passenger’s negligence.

May provide excess passenger cover

If the passenger limit is exceeded, it may cover on a prorated basis. E.g.:

• Vehicle registered for 4 passengers.
• Six passengers were in the car during an accident.
• It covers liability for 6 passengers but is reduced by 4/6.

So, passenger liability coverage fully protects you against claims from passengers for any injury or death they sustain. At the same time, you owe them a duty of care during the e-hailing ride. This is crucial protection to have.

10 E Hailing Insurance Companies in Malaysia

In Malaysia, most major insurance providers now offer e-hailing insurance products and plans explicitly tailored for ride-sharing drive ridesharing.

Grab Daily E-Hailing Insurance

If you reside in Malaysia, there is almost a 100% chance you know what Grab is.

Yes. As of now, Grab still dominates the market of e-hailing. Therefore, most e-hailing drivers are Grab drivers.

Fortunately, launched in partnership between Grab and multiple insurers, Grab Daily E-Hailing Insurance makes selecting and purchasing e-hailing insurance easier and more convenient. Everything can be accessed and processed via Grab App

This program has some renowned insurance providers, such as Etiqa, Liberty, Zurick, Alliance, and more.

Grab drivers only have to pay a small daily premium whenever they drive, and they will be covered for all Grab rides for that day.

Coverage activates begin immediately upon premium deduction. Thus, there will be no need for an annual insurance plan.

Below is the list of reputable e-hailing insurance products and providers in Malaysia in partnership with Grab:

These provide a range of flexible and affordable options for e-hailing drivers to get suitable protection.

Don’t worry. All these insurance companies are some of the most reputable ones. They also offer some of the best travel insurance in Malaysia.

Your Risk Level Will Affect Your E Hailing Insurance Rate

Like regular motor insurance, your risk level as a driver is a crucial factor influencing the e-hailing insurance rate you pay. Drivers deemed higher risk pay more, while lower-risk drivers enjoy lower rates.

Here are the leading risk factors insurers look at to determine your premiums:

Age

Younger drivers below 21 and older drivers above 65 typically pay higher premiums due to inexperience and slower reflexes, respectively.

Driving experience

Newly licensed drivers are considered higher risk and charged more as they have less experience handling vehicles.

Past claims history

Drivers with frequent past claims are categorised as higher risk. More claims suggest a higher likelihood of future claims.

Vehicle age

Older vehicles above 10-15 years incur a higher cost to repair and replace. Hence premiums are higher.

Geographical location

Insurance rates differ based on location categories like urban, suburban, and rural with different risk levels.

Vehicle makes & models

High-end, high-powered, and luxury models cost more to insure.

Convicted driving offences

Drivers with past DUI or reckless driving convictions may be barred or charged much higher.

Credit profile

Good credit scorers may qualify for lower premiums from some insurers.

Full-time vs. part-time driving

Full-time drivers may get lower premiums from certain insurers than part-timers.

Passengers insured

Policies covering more passengers may cost slightly more.

Conclusion

E-hailing insurance is legally mandatory for anyone providing e-hailing services in Malaysia using their private vehicles. It protects you and your passengers when your private car is used commercially to ferry passengers.

Ensure you get a suitable e-hailing insurance add-on policy on top of your basic private motor insurance. Only drive for e-hailing with an active e-hailing insurance plan, as you could be uninsured and face serious financial risks.

Compare quotes from reputable insurers offering innovative coverage options and purchase a plan that provides adequate protection at a reasonable premium.

So, find out now the most suitable plan for you lest you cry over the spilt milk!

Frequently Asked Questions (FAQs)