Putrajaya Unsure On Status Of Ridesharing Services

Putrajaya Unsure On Status Of Ridesharing Services

Ride-sharing operators are still waiting for a decision from Putrajaya on whether to classify their services as private or commercial.

According to Sean Goh, country head for Grab Malaysia, the government through the Land Public Transport Commission has yet to decide on the tier of services that ride-hailing companies are offering.

“We will be waiting for the government to make the relevant announcement,” he was quoted as saying by business paper The Edge.

The need to distinguish the type of services that e-hailing operators are offering is “technically important”, said Goh, as it will provide clarity to not just the transport industry but also to other spill-over sectors such as insurance.

“Right now, Grab is not officially classified as a commercial services provider. 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,” he added.

Last year, Deputy Transport Minister Abdul Aziz Kaprawi said e-hailing operators such as Grab and Uber would be required to purchase the same commercial insurance as regular taxis to continue operating on Malaysian roads.

“The most important thing is that Grab Malaysia provides a safety net to all its stakeholders, which include auto insurance and personal accident,” said Goh, adding that the e-hailing operators will comply with the latest insurance coverage scheme announced by the government.

“For now, our insurance coverage for Grab drivers and passenger is adequate,” he said, adding that Grab has engaged Great American Insurance Co to provide insurance coverage of up to US$10,000.


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