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Understanding the E-hailing Add-On For Private Hire Car

If you own a car and drive it frequently, you need to pay for car insurance and road tax. According to the Ministry of Transport, e-hailing drivers must now obtain a PSV licence as well as E-hailing insurance when they use their vehicle for e-hailing services such as Grab. This regulation became effective in 2019.

What is e-hailing add-on? how is it different from regular car insurance?

As defined by the Road Transport Act 1987, private car insurance covers you only when your car is used for social, domestic, or recreational purposes, or for the policyholder's business. When you use your car to provide E-hailing services and charge passengers, you fall under the private car insurance Exception List. If you are involved in an accident and file a claim while operating your Grab vehicle, your claim will be denied due to a violation of your private car insurance policy.

E-hailing is an add-on insurance that you can purchase to overcome above problems. E-hailing add-on is specifically designed for E-hailing drivers to minimise legal and financial risks that they might run into. Berjaya Sompo Insurance is one of the top online car insurance companies that offers E-hailing insurance.

Under Berjaya Sompo Private Hire Car Endorsement or E-hailing add on, the coverage includes:

  1. Loss or Damage to Your Own Car
    When your car is On-Call and transporting passengers and is involved in accident, the E-Hailing add-on insurance covers the loss or damage to your own car. The coverage also includes events such as fire and theft loss when you are transporting passengers in your car.

  2. Liability to Third Parties
    Your online car insurance provider will indemnify you or your Authorised Driver for the amount that you or your Authorised Driver are legally liable to pay any third party for the death or bodily injury of any person and property damage caused by an accident resulting from the use of your car on the road while your car is On-Call.

  3. Legal Liability to Fare-Paying Passenger
    Your online car insurance provider will cover any liabilities incurred by your Fare-Paying Passengers while being transported in, entering, or exiting your car, including death or bodily injury. However, if the number of passengers in the vehicle at the time of the accident exceeds the legal limit, your insurance provider will not pay in full. Your insurance provider will compensate you based on the formula below:

    (No of passenger permitted by law)xTotal claim awarded
    (No of passenger carried at time of Incident)

    Therefore, it is not advisable to transport more than the permitted number of passengers in your vehicle seat as stated in the Vehicle Registration Card.

  4. Personal Accident up to RM10,000 for the Authorised E-Hailing Driver
    When you or the Authorised Driver is On-Call and unfortunately enough to be involved in an accident and sustains from bodily injury, you or the Authorised Driver are entitled to the following compensation:

    Payable InjuryScale of Compensation (RM)
    Total and irrecoverable loss of sight in both eyes10,000
    Total loss by physical severance at or above the wrist or ankle of both hands or both feet or of one hand together with one foot10,000
    Total loss by physical severance at or above the wrist or ankle of one hand or one foot together with the total and irrecoverable loss of sight in one eye10,000
    Total and irrecoverable loss of sight in one eye10,000
    Total loss by physical severance at or above the wrist or ankle of one hand or one foot10,000
    Total disablement from engaging in or giving any attention to such person’s occupationRM50 per week for a period not exceeding 26 consecutive weeks.

  5. Legal Liability of Fare Paying Passengers for Negligent Acts
    Your online car insurance provider will cover for legal liability if any of your Fare-Paying Passengers is involved in an accident involving a third party. This means that your insurance provider will cover you if a fare-paying passenger is sued for their negligent behaviour while riding in your car.

Berjaya Sompo Insurance offers E-Hailing add-on for RM480 per annual. This affordable price is to ensures that you are protected against unforeseeable incidents while remaining within your budget. The daily plan is suitable for part time E-Hailing driver because it allows you to obtain E-Hailing add-on on an as-needed basis. When you are not On-Call, you are not requires to pay the additional fee. The annual plan, on the other hand, is suited for a full-time E-Hailing driver. By far, Berjaya Sompo Insurance offers the most affordable annual insurance for E-Hailing drivers, RM480 and you can opt in the e-hailing add-on when you are renewing your car insurance online.

Starting from 1st June, 2022, the e-hailing add-on is only available for existing customers only.