PETALING JAYA: Bank Negara has stepped in to address concerns over steep e-hailing insurance premium hikes raised by drivers.
The central bank said it was exploring potential solutions together with the insurance industry and key stakeholders to make e-hailing insurance more accessible, affordable, and sustainable.
“We recognise the importance of e-hailing services as a source of income for many Malaysians, especially gig economy workers.
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“We are committed to ensuring that insurance protection for these drivers remains fair and sustainable,” Bank Negara said in a statement to The Star.
Bank Negara said this when asked for its response to an appeal by Persatuan Penghantar P-Hailing Malaysia (Penghantar), which urged the central bank to reassess insurance premium pricing practices for e-hailing drivers.
The group’s appeal was reported by several news outlets on Oct 6.
E-hailing insurance was introduced in Malaysia in 2017 as an add-on to a private car comprehensive policy to include the use of a personal car for e-hailing services. It provides additional coverage for passengers and personal accident coverage for drivers.
It is estimated that there are more than 100,000 e-hailing drivers in Malaysia.
Bank Negara said it was working closely with key stakeholders, including the Transport Ministry, Land Public Transport Agency (APAD), Road Transport Department (JPJ), and general insurance and takaful operators (GITOs) to address e-hailing issues and the broader ecosystem challenges.
Areas being studied include improving road safety, encouraging telematics adoption, enhancing data sharing, and reducing accident frequency.
“As part of this effort, GITOs are also examining how risks can be assessed more accurately and how safe-driving behaviours can be better recognised.”
The central bank said insurance premiums for e-hailing vehicles look at several market realities, such as significantly longer driving duration and mileage compared to private cars.
Rising repair and labour costs have also put pressure on the wider motor insurance segment.
This has led some GITOs to periodically adjust premiums to cover claims costs, while others have chosen to scale back due to the segment’s risk profile, Bank Negara said.
“In this environment, Bank Negara exercises oversight to ensure that any premium increase is fully justified based on claims experience and implemented in a fair manner.”
The central bank said it has expanded engagements with various e-hailing associations to build greater understanding and awareness of e-hailing insurance, as well as to promote safer driving behaviours.
Meanwhile, the General Insurance Association of Malaysia (PIAM) and its member companies said that they fully support Bank Negara-led initiatives and collaborative efforts to ensure that e-hailing insurance remains accessible, sustainable, and competitively priced.
In a statement to The Star, PIAM said it will continue to engage actively with e-hailing platform operators to address the rising costs of claims.
“We recognise the concerns raised by e-hailing drivers and industry stakeholders regarding the adjustment on insurance premiums.
“We are committed to transparent communication and will continue to closely collaborate with all stakeholders to strengthen the overall ecosystem for insurers, policyholders, and the e-hailing community,” PIAM said.
The association emphasised that it does not set or influence pricing decisions, noting that premiums are determined by individual risk-pricing models.
“For example, higher mileage and greater exposure to road risks have led to an increase in the frequency and severity of claims, resulting in higher claim costs.
“Rising costs of bodily injury and property damage, including medical expenses and vehicle repair costs, have further contributed to the pressure.
“These factors have inevitably led insurers to periodically adjust premiums to maintain long-term sustainability of the coverage, while some have reassessed their participation in this segment based on their respective risk outlook,” it added.
PIAM also encouraged consumers to compare quotes from various insurers to find a policy that suits their needs and budget, ensuring adequate coverage based on their location and risk exposure.
