KUALA LUMPUR: Insurers and takaful operators cannot arbitrarily raise premiums for e-hailing vehicles without clear evidence from claims data, according to the Finance Ministry.
In a parliamentary written reply dated July 15, the ministry clarified that any premium adjustments must be supported by actual claim data and implemented gradually with transparency and prudence.
Bank Negara Malaysia has been tasked with monitoring pricing practices to ensure increases are not excessive.
The ministry explained that e-hailing premiums are inherently higher than those for private cars due to longer driving hours, higher mileage, and increased accident risks.
In some cases, claim costs have exceeded premiums collected, prompting necessary adjustments to maintain sustainability.
However, insurers are required to provide clear disclosure regarding protection scopes, exclusions, and benefit structures, with consumer protection frameworks available to handle unfair practices.
To address long-term sustainability, the government, the central bank, insurers, and the e-hailing industry are studying potential improvements to the sector's protection structure.
Among the measures being considered are cost-sharing mechanisms with platform operators and the use of telematics technology to encourage prudent driving and enable premium pricing based on individual risk.
The ministry was responding to Zahir Hassan (PH-Wangsa Maju), who asked about measures to regulate or standardise insurance rates for e-hailing vehicles.
