Grab Malaysia has introduced a usage-based motor insurance and takaful for its e-hailing drivers.
In a statement today, the group said the insurance and takaful policy Grab Daily Insurance (GDI) was specially designed in partnership with 14 leading Malaysian insurers and takaful operators.
Grab Malaysia said this offers its driver-partners the option to add on a daily e-hailing insurance or takaful coverage from RM1 a day.
The move comes in as new e-hailing regulations require e-hailing drivers to purchase an e-hailing insurance or takaful policy, on top of their existing motor insurance or takaful policies, which average between RM400 and RM500 a year.
The group noted that 80% of its drivers are part-time drivers, who are on average able to supplement their income by 37%, on top of income from their day-to-day jobs.
Grab Malaysia country head Sean Goh said the GDI will help ease the cost burden borne by its drivers to continue driving for the group's e-hailing platform.
"We are committed to forming further strategic partnerships such as these with the private sector across industries to develop even more accessible innovations and also with our government to create a more conducive environment to do so," said Goh.
GDI is the latest product launched by Grab Financial Group's insurance arm GrabInsure, which is a digital insurance market place established by a joint venture between Grab and ZhongAn Technologies Insurance International.
In order to be covered under the GDI, Grab drivers will need to opt-in for the GDI within their version of the Grab app, and have to ensure that their respective motor insurance or takaful provider is on the group's panel of insurers and takaful operators.
Once they have opted-in, the insurance and takaful premium will be deducted from their driver wallet every 24 hours upon going online, with daily rates ranging between RM1 and RM2 — depending on the driver's motor insurance and takaful provider.
As such, Grab drivers will only have to pay for insurance for the days when they are online.
Allianz General Insurance Company (Malaysia) Bhd, AmGeneral Insurance Bhd, AXA Affin General Insurance Bhd, Berjaya Sompo Insurance Bhd, Chubb Insurance Bhd are part of Grab's panel of insurers and takaful operators.
In addition, Etiqa General Insurance Bhd, Etiqa General Takaful Bhd, Liberty Insurance 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.