Unclear start to insurance for e-hailing vehicles

LAST week, a general insurance company released a media statement announcing its launch of motor insurance for private vehicles used in the ehailing service.

Similar to other covers such as for floods or strike, riot and civil commotion, the cover for ehailing can be added on to the standard comprehensive motor insurance policy.

The additional premium to cover for flood is RM5 per thousand ringgit of the sum insured, and RM3 for strike, riot and civil commotion. But the premium to insure for ehailing service was not disclosed.

The statement explained that the cost was riskbased and would depend on several factors such as the policyholder’s details, and assured that it would be relatively affordable.

It said a vehicle below 1.5cc with full 55% NoClaimDiscount (NCD) can enjoy the coverage with an additional premium ranging from 30 sen to 70 sen a day.

But there are no internal combustion engine sizes below 1.5cc and this error was replicated by many print and electronic media. It should have been below 1.5 litres or 1,500cc.

Ehailing service was introduced in this country more than three years ago. It is a wonder why insurance for ehailing vehicles was not introduced soon after the service was legalised in July.

Even after its launch, the premium was not disclosed upon request. It should be publicised and promoted, as ehailing drivers are still running afoul of the law because their vehicles are not insured for third party injuries when ferrying farepaying passengers. YS CHAN Kuala Lumpur