SHAH ALAM, Oct 28 — The government is considering introducing distance-based insurance and takaful coverage for e-hailing drivers as part of efforts to reduce rising insurance costs and provide more affordable protection.
Transport Minister Anthony Loke Siew Fook said the proposed scheme would take into account the distance travelled and individual drivers' risk levels.
He said the proposal followed a study conducted by an inter-agency task force established by Bank Negara Malaysia (BNM) to recommend measures to reduce insurance costs for e-hailing drivers and examine reforms to the e-hailing insurance and takaful system.
"These reforms include improvements to the scope and structure of e-hailing coverage to better suit drivers' needs," he said in a written parliamentary reply yesterday.
He was responding to Bakri MP Tan Hong Pin, who had asked how the government was addressing rising e-hailing insurance and takaful premiums and strengthening drivers' social protection.
According to Loke, other proposed reforms include a mechanism to share risks and costs among e-hailing platform operators, drivers and passengers, as well as the use of telematics technology to encourage safer driving behaviour.
Another proposal involves improving data sharing between platform operators and insurance companies to support claims verification and more accurate risk assessments.
Loke said the Transport Ministry (MOT) was working with BNM, the Land Public Transport Agency (APAD), the Road Transport Department (JPJ), industry players and e-hailing driver associations to review long-term improvements to insurance coverage.
"The government remains committed to adopting a whole-of-government approach and working with all stakeholders to ensure that e-hailing insurance coverage is fair, transparent and sustainable while safeguarding the welfare of drivers in the gig economy."
He said vehicle insurance remained mandatory under Section 90(1) of the Road Transport Act 1987 to protect drivers, passengers and third parties in the event of accidents involving injuries or property damage.
Loke added that social protection for e-hailing drivers was governed by the Employees' Social Security Act 1969, the Self-Employment Social Security Act 2017 and the Gig Workers Act 2025.
