Insurance for e-hailing vehicles in the pipeline
SOON after the e-hailing service hit the streets here in 2014, I had pointed out repeatedly that private vehicles are not insured to provide transport for fare-paying passengers.
I continued to do so even after two bills were passed in Parliament on July 27 this year legalising e-hailing services in Malaysia.
Recently, one insurance company unveiled its plans to introduce a cover for e-hailing vehicles and its e-brochures should be of interest to drivers, passengers, insurance agents and the relevant authorities.
For example, the insurer confirmed my warnings to e-hailing drivers that they are not insured for third party bodily injury, which is required by law, while ferrying passengers. They are also not covered for damage to third party property, or their own vehicle under comprehensive insurance.
Cabbies are fond of pointing out that there is no insurance for passengers in private cars, not knowing that passengers in taxis too are not insured. The motor insurance for public service vehicles only covers bus and taxi drivers for legal liability to passengers.
When bus and taxi drivers are at fault in accidents, injured passengers would have to sue them and wait for compensation to be awarded by a court, which may be several years later. But if the accident is caused by an out-of-control lorry, passengers would have to sue the lorry driver. If the lorry is insured and the driver not under the influence of drugs or alcohol, injured passengers should pursue third party claim for bodily injuries. But if it is a lori hantu (unlicensed lorry) or if any of the terms and conditions of the motor policy is breached, there is no insurance cover.
The company would be offering legal liability to passengers cover for e-hailing vehicles. Not only that, it is embedding the legal liability of passenger cover as well. This little-known cover insures passengers for legal liability, such as opening car doors recklessly and causing injury to others.
Imagine a rear door being opened suddenly and a pedestrian or motorcyclist crashing into it. This cover should be included for all taxis, not just e-hailing vehicles. Although the premium is only RM7.50 annually for private vehicles, few owners are aware or have such covers.
Personal accident insurance (PAI) for drivers should be made optional instead of including it in the package, as it would drive up the premium.
This is because all e-hailing and taxi drivers must be registered with Socso under the Self-Employment Social Security Act 2017. Socso chief executive Datuk Dr Mohammed Azman Aziz Mohammed said in May that it does not matter whether they are full-time or part-time drivers. Those who fail to do so can be charged in court and if found guilty, fined up to RM10,000, jailed up to two years or both.
But then e-hailing and taxi drivers would have to cough out between RM157.20 and RM592.80 a year to be registered under the Government’s social security net plan.
The Act officially comes into force on June 1 but drivers are given until the end of this month.
If so, Socso will be busy hauling thousands of e-hailing and taxi drivers to court next year for non-compliance. If e-hailing drivers are already covered under Socso as required by law, it would be unfair to force them to pay additional PAI cover just to be insured for ferrying fare-paying passengers.
At the moment, the premium for e-hailing vehicles has yet to be announced, but it would be a new add-on cover available for private vehicles under comprehensive cover. Add-on covers for special perils such as floods or strike, riot and civil commotion have long been available.
Unlike other add-ons which are for a full year, vehicles already insured with the said company can include e-hailing cover during mid-term for insurance to be effected without delay. It won’t be long before other insurers join the bandwagon.
It should have been introduced five months ago after amendments to the Land Public Transport Act 2010 and the Commercial Vehicles Licensing Board Act 1987 were passed in the Dewan Rakyat in July.