The General Insurance Association of Malaysia (PIAM) agrees with the writer that both the owner and the driver are taking on the serious risk of self-insurance if they operate e-hailing without the protection of the specific e-hailing insurance extension.
We strongly encourage all operators to ensure that vehicles registered through their services carry the appropriate insurance for the business of e-hailing.
This additional insurance covers the vehicle, driver, passenger and third parties during the time the vehicle is in the e-hailing mode (during the entire period the e-hailing application is switched on until it is switched off).
E-hailing insurance cover is now readily available in the market. E-hailing drivers can request for an extension of their existing car policy cover from the insurer who is insuring their vehicle.
Due to the unique nature of e-hailing, the additional insurance cover must be bought so that the Private Car Policy can provide the added cover when the car is used for the business of e-hailing.
The motor premiums which insurance companies can charge consumers have been regulated by a tariff structure for the past three decades.
In 2016, Bank Negara Malaysia announced the Phased Liberalisation of the Motor and Fire Tariffs before transitioning to a fully liberalised market.
Liberalisation of the tariff means removing the tariff structure or freeing up the fixed premium rates so that insurance companies are able to charge premiums that are commensurate with or correspond to the risk profile of the driver.
Consumers also benefit from new and innovative products launched by insurers. PIAM advises the motoring public to shop around for the insurance cover that best suits their needs.
We appreciate the issues raised in “Insure vehicles for e-hailing purpose”.
While the Road Transport Act 1987 makes it compulsory for a vehicle to have the minimum Third Party Insurance before it is permitted for road use (as a condition of which road tax can be purchased for the vehicle), Third Party Insurance does not cover passengers and use for hire and reward are specific exclusions in a Private Car Policy.
Should insurers be compelled to pay for claims that are not covered under the Policy, there is a provision in law that insurers can recover both the settlement and the legal cost incurred from the owner and/or the driver.
PIAM has been working closely with all relevant government bodies on this matter and will continue to engage all key stakeholders to ensure that the public will benefit from innovative motor insurance products that offer peace of mind to all road users in Malaysia.
Mark Lim (Chief executive officer, PIAM)
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