Tokio Marine has partnered with two firms to provide cheap insurance products for gig economy workers in Malaysia. The Japan-based insurer will focus these cheap policies on delivery riders, as the gig economy is expected to continue playing a significant role in the growth of e-commerce.
The insurer, alongside logistics provider KirimMan and fintech Finology, said that the new product is priced as low as MYR1 ($0.23) per day, offering gig workers affordable protection against road accidents while on the job. It provides coverage for accidental death or permanent disablement, medical expenses due to accidents, and ambulance fees. The protection is also enforced throughout the day and not limited to delivery trips.
Citing a report from Google, Finology said in a news release that the Southeast Asian internet economy is expected to hit $300 billion by 2025, a statistic that will benefit from additional insurance protection for gig workers.
Besides covering personal accidents for the rider, the collaboration also resulted in a goods-in-transit insurance product. This offers logistic providers affordable coverage for goods in transit, with rates as low as MYR2 ($0.45) per parcel. Both personal accident and goods-in-transit insurance products are now available for KirimMan customers and riders, who handle more than 50,000 parcels monthly.
KirimMan executive director and co-founder Tim Chee said that the new insurance product would help gig workers have more peace of mind while on the job.
“As a logistics aggregator and provider who works with various logistic companies, we understand the risks that delivery riders face every day. By offering affordable insurance coverage, we hope to provide them with the peace of mind they need to do their jobs effectively,” Chee said.
Earlier this year, Tokio Marine made waves in the industry as it announced its plans to start selling insurance to customers through the metaverse.
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