E-hailing Insurance Add-on: What you need to know
Working as an e-hailing driver has become an alternative and main income source for many Malaysians. It is important for all drivers to make sure you have the correct coverage you need for your work.
In this article, you’ll gain more information about e-hailing and its importance. Read on and don’t miss out the last part!
What is E-hailing?
“E-hailing!” may sound like a very unfamiliar term, but it is something that everyone has in their mobile phone.
Still wondering what E-hailing is?
E-hailing is a process of ordering a car, taxi, limousine, or any other form of transportation pick up via virtual devices: computer or mobile device. A one word definition of E- Hailing is “Grab”. Grab is an example of an E-hailing firm. Besides that, Malaysia has about 41 e-hailing firms for riders and passengers to choose from such as MyCar, EzCab, EaziCar and many more.
E-hailing has made a structural improvement particularly in our big towns and cities. A decade ago individuals in need of a taxi ride had to either physically wave at a taxi or call a local car service to reserve a car at least half an hour prior to the pickup time.
With the development of E-hail services it is possible to secure a cab via a smartphone from any location. This service has particularly given various benefits to society and it has become a necessity in our daily lives.
E- hailing benefits;
- cashless payment
- track down the vehicle routes
- rate the driver’s performance
- cheaper rates.
Due to the systematic management system and working flexibility, it has given job opportunities to drivers to join as part timers or full timers.
How is E-hailing relatable to insurance?
E-hailing insurance is an add-on coverage to your existing car insurance policy just like when you add windscreen(link to windscreen blog), road tax or roadside assistance(link to roadside assistance blog). If you work as a private e-Hailing driver for companies like Grab, MULA, EzCab and DIFF, it is important to make sure you have insurance covered for your work.
It is important for all e-hailing drivers to get the right insurance!
Why? If your insurance company finds out that you met with an accident while using your car for commercial purposes, they will immediately reject your claims. This is because commercial purpose means that the vehicle was used to make money and there is a different insurance for this called e-Hailing insurance.
e-Hailing insurance is slightly more expensive than private car insurance because your car is much more often on the road, thus higher risk of getting into an accident. Every commercial vehicle has e-hailing insurance since it’s a mandatory law imposed by the government.
Today e-hailing has become a very common part of our daily lives, and is well integrated into the Malaysian infrastructure. Insurance and takaful companies have started emphasising on e-hailing rider’s insurance with extra protections for your vehicle and your passenger.
E-Hailing insurance covers you for…
- Loss or damage to your own car
You will be covered for the loss or damage to your own car due to an accident, fire, or if your car is stolen.
- Liability to third parties
You will be covered for the loss or damage to another person’s car or property.
- Legal liability to fare-paying passengers
You will be covered for the injury or death of the passenger due to an accident.
- Legal liability of fare-paying passengers for negligent acts
You will be provided coverage in case the passenger sues you for driving negligently, resulting in property damage, bodily injury or death.
- Personal accident coverage for the driver while performing e-Hailing services.
You will be covered for your death or injury due to an accident.
e-Hailing insurance coverages are not included in your Third Party, Third Party Fire & Theft and Comprehensive Cover. Now, it’s mandatory for all licensed e-Hailing drivers to obtain e-Hailing insurance.
Insurance companies in Malaysia with e-hailing insurance
E-hailing drivers who have a motor insurance(link to motor page) policy with the listed Insurers can opt for daily insurance.For example Grab has this facility where e-hailing drivers can choose Grab Daily Insurance for just Rm1 to RM2 on a daily basis and they are covered for 24 hours when they are on the road and driving for Grab. Apart from this, Grab drivers are also given the facility to purchase their own Annual e-hailing insurance and submit the Insurance Cover Note to Grab. Read on to find out the Grab Daily Insurance offered by various insurers for Grab drivers!
|Insurers||Grab Daily Insurance|
|Etiqa Takaful||RM1.36 / day|
|RHB Insurance Bhd||RM1.36 / day|
|Am Assurance||RM1.06 / day|
|Allianz||RM1.90 / day|
|Kurnia Insurance||RM1.06 / day|
|AXA Malaysia||RM1.80 / day|
|Tokio Marine Group||RM1.70 / day|
|Zurich Takaful||RM1.33 / day|
|MSIG Insurance||RM2.00 / day|
|CHUBB Malaysia||RM2.00 / day|
|MPI Generali||RM1.33 / day|
Daily vs Yearly E-Hail Insurance
Daily or Yearly? Which one should I opt for?🤔
E-hailing insurance provides two ways to purchase insurance.
1) Daily E-Hailing Insurance – You choose this option on a daily basis while you are driving for commercial use, if you are not driving or working on that day, you don’t need to purchase the Daily E-Hailing insurance. Eg: If you work as a Grab Driver, you pay RM 1-2 in the Grab applications. This ensures that you are insured for that day.
2) Yearly E-Hailing Insurance – Another option is to buy a yearly E-Hailing insurance. This saves your time from buying insurance on a daily basis furthermore, it is a cheaper option for full time e-hailing drivers. It is cheap because you spend up to RM2 for daily insurance, whereas for yearly, you spend around RM240 (the cheapest yearly e-hailing insurance) which is RM0.66 per day.
There are 2 different cases for you to decide on which option is right for you.
Case 1: If you drive for commercial purposes less than twice a week, then Daily e-hailing insurance is a suitable option. In this way you spend a lesser amount of your money since you are not a regular driver.Case 2: If you drive for commercial purposes more than twice a week, then Yearly e-hailing insurance is recommended where you can save over 70% on your e-hailing insurance.
Are e-Hailing drivers covered if he/she happens to pick up a Covid-19 patient?
No, since e-hailing only covers personal accident coverage and covid-19 is not one of them. It is advisable to get medical insurance that covers covid-19 if they are working in this covid19 period.
4 Tips to reduce your e-hailing Insurance premiums!
e-Hailing insurance varies significantly in price. This gives you the privilege to find cheaper and efficient cover for your e-hailing insurance. To save your money, check out these secret tips to reduce your premiums!
Tip 1: Drivers above the age of 25 are able to get lower quotes on their e-hailing insurance. This is because drivers below the age of 25 are least experienced and are prone to higher risks of accidents, eventually higher premiums.
Tip 2: Another way to reduce your insurance is to report your accident immediately. This avoids you from encountering higher premiums during your renewal.
Tip 3: New e-hailing drivers will have a higher premium. To acquire cheaper premiums in the subsequent years, you have to build up your No Claim Discount. Driving safely and responsibly will prevent you from accidents ,thus increasing your NCD.
Tip 4: Compare e-hailing insurance.This is the best way to get cheaper e-hailing insurance. Did you know PolicyStreet can also help you add-on your e-hailing insurance? Reach out to us anytime on Whatsapp at +601 11-684 2590 and we will be happy to assist!