The Malaysian government has yet to come out with a decision to classify ride-hailing services such as Grab and Uber as private or commercial, according to a company executive.
This was revealed on Thursday by Sean Goh, Grab’s country head for Malaysia, speaking to reporters after an event marking the launch of the company’s passenger loyalty rewards programme.
“We will be waiting for the government to make the relevant announcement,” he added.
Goh reiterated that the government’s decision is important not just for the ride-hailing companies but also for related sectors such as insurance.
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“Right now, Grab is not officially classified as a commercial services provider,” Goh was quoted by Edge Markets. “We want to ensure that there is no gap in insurance coverage for our drivers and passengers. For this matter, we have rolled out group personal insurance to protect the safety of Grab stakeholders.”
Deputy Transport Minister Datuk Abdul Aziz Kaprawi announced last year that ride-hailing firms will be required to have the same commercial insurance policies as taxis to continue operating in Malaysia.
In February, General Insurance Association of Malaysia chairman Antony Lee said that the government and companies must come up with a clear classification of ride-hailing services to allow insurers to develop relevant insurance products that cover the transport sector’s needs.
“For now, our insurance coverage for Grab drivers and passengers is adequate,” said Goh. He also added that Grab has entered a deal with Great American Insurance Co to provide insurance coverage of up to US$10,000.
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