Are you a Grab driver in Malaysia? Make sure that you have the right insurance, so that when you have an accident, the insurance will not deny your claim. Find out which company provides the Best insurance for Grab drivers.
In this article, we will describe what insurance a Grab driver needs and what protection it provides. Not every car insurance is suitable for Grab drivers, so you must carefully check your insurance. Find a list of the best insurance for grab drivers that can be purchased online.
For many Malaysians becoming a Grab driver is an easy and straightforward way to earn a few extra ringgit on the side. So it is not very uncommon for Grab drivers to have a full-time job and only drive Grab part-time. In the early days, being a Grab driver or an Uber driver was something new and unique. Many taxi drivers did not like the new competition, because it meant fewer guests for them and less income. But Grab makes taking a ride more pleasant, safer and more comfortable for tourists who always had to haggle over the price or be afraid to get scamped.
Commercial insurance for Grab drivers is expensive
One big problem for Grab drivers was to get the right car insurance. If the insurance company had found out that the accident happened while being a Grab driver, then the claim would have been rejected. The reason for rejection is that the car was not used privately, but for commercial purpose. Commercial purpose means that the vehicle was used to make money. Individual insurance for Grab drivers did not exist yet, and there was no best car insurance for Grab drivers out there.
The right car insurance for Grab drivers is crucial
A Free Malaysia Today article “GrabCar drivers told to make personal reports for insurance claims” describes, where a Grab driver was refused their insurance claim because the car was used for Grab. When you use your vehicle for commercial purpose, then you need to get different insurance, which is called commercial insurance. All taxi and busses have commercial insurance. Commercial insurance is much more expensive than private car insurance because the car is much more often on the road, and the risk to get into an accident is higher. However, buying commercial car insurance for part-time Grab drivers is too expensive. So in the early days, many drivers took the risk and drove Grab with regular private car insurance.
e-Hailing insurance is custom made for Grab drivers
Today, Grab has become the norm very much and is well integrated into the Malaysian infrastructure. Many places offer now dedicated spots for Grab drivers to drop off and pick up customers. Today insurance and takaful companies have also adopted the new trend and provide individual insurances that allow part-time Grab driver to be fully protected. This new insurance is called e-hailing. Read on to find out which car insurance company offer the best insurance for Grab drivers in Malaysia.
Best Car Insurance for Grab Drivers in Malaysia
What does e-Hailing insurance protect in Malaysia?
e-Hailing is the term used to describe when someone uses a mobile device to call for a car for pick up. In Malaysia, insurance for Grab drivers is offered as an Add-on to the private car insurance. So when you purchase your car insurance or car takaful, you can add-on e-Hailing like windscreen cover to protect you while working as a Grab driver.
Car Insurance for Grab Drivers need to cover 4 key areas:
- Loss or Damage to your own car, when used commercially
- Liability to Third Parties, when used commercially
- Legal liability to/of fare-paying passenger
- Driver Personal Accident
Loss or Damage to your own car, when used commercially
Protection for “Loss or Damage to your own car” is the protection you get, when you purchase regular comprehensive insurance in Malaysia and use the car privately. However, when you are a Grab Driver, and even if it is only part-time, then this protection does not exist for your regular insurance. It is difficult to prove that you are not using your car for Grab if you are registered with Grab. Using your vehicle to be a Grab driver is considered commercial use and you will need to have commercial insurance. The e-Hailing add-on will provide you with the added protection for commercial use.
Liability to Third Parties, when used commercially
Similar to “Loss or Damage to your own car, when used commercially”, you will need to extend your “Liability to Third Parties” from private use only to commercial use. When you purchase an e-Hailing add-on, then your protection is extended to commercial use as a Grab Driver.
Legal liability TO fare-paying passengers
When you are driving passengers as a Grab driver, and you get into an accident, then your passengers might sue you for any damages or injury. For example, during the crash, an expensive camera of your passenger broke, and he now wants you to pay for it. You are responsible for it. Thus you are liable for it. E-Hailing insurance will pay for the broken camera to the passenger.
Legal liability OF fare-paying passenger for a negligent act
It almost reads like the previous protection of “Legal liability to fare-paying passengers”, but the difference is in detail. This is the responsibility of the passenger that drive with you. For example, if a passenger opens a door and a motorcycle drives into the door, you have two parties with damages. Number one is the Grab driver because your car door is broken. So you want to get the money from the passenger.
Number two is the motorcyclist. The motorcycle might be broken, and the motorcyclist might be injured. The motorcyclist wants to get his damages paid and will look at you the Grab driver first because you are the vehicle owner.
In both cases, the “Legal liability of fare-paying passenger for negligent act” will help you get paid for the damages to your door and the motorcyclist.
Driver Personal Accident
This coverage is optional and a nice to have for any Grab driver, who cannot afford to buy Life insurance. In our article “How to buy the cheapest life insurance“, we have described two alternatives to full life insurance: Term Life and Personal Accident. Many e-Haling add-ons provide Personal Accident insurance for the driver so that in case of a severe accident, the family is left with enough money to adjust to the new life situation.
Not all companies offer Car Insurance for Grab Drivers online
As of the time of writing, only 3 insurance and takaful companies offer insurance for Grab drivers online. There are a couple of other companies that also provide coverage for Grab drivers, but to buy the add-on, you need to contact an insurance agent. For example, Chubb Insurance Malaysia Berhad offers e-hailing on their webpage, but they do not provide a way to purchase it online.
For a sample car with the sum insured of RM 55000, Berjaya Sompo Motor has the cheapest price and offers critical protection for Grab drivers.
Summary Best Car Insurance for Grab Drivers
- Berjaya Sompo Motor e-Hailing
- MSIG Motor e-Hailing e-Zee
- Etiqa Malaysia e-Hailing