Commercial insurance a must for Uber, Grab – gov’t

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According to a report by The Malay Mail, ride-sharing services like Uber and Grab will soon have to abide by new terms if they wish to continue operating in the country. Deputy transport minister, Datuk Abdul Aziz Kaprawi has reiterated that these terms will include the need to purchase commercial insurances, just as regular taxi drivers do.

“When the government regulates it, definitely we will need to install certain elements of the current taxi system into theirs,” he said. Taxi operators have since been made to purchase commercial insurances. It offers a degree of protection to their customers in the event of an accident.

Operating as private vehicle owners that offer rides for a fee, Uber and Grab are not bound to offering such insurance, incurring fewer operational costs. “We have discussed it with SPAD and they’ve done their lab (tests) and what I was briefed on is that they’ll try to regulate these apps,” said Kaprawi. “There is some suggestion to create a new approach like setting up taxi network operators,” he added.

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The government is also said to be looking at different ways to relieve some of the financial burden faced by taxi drivers. Kaprawi suggested that one way would be to reduce the frequency of the RM50 Puspakom inspections that taxi drivers are faced with. From having to undergo the inspections twice every year, this may be reduced to just once a year.

In January this year, the deputy transport minister further elaborated why ride-sharing services needed further regulation. “We want to regulate the industry so that these vehicles are safe for people to ride in. We also want to legalise the industry as the number of phone apps will continue to grow. Malaysians find these apps very convenient in terms of securing public transport,” he said.

As reported then, it seems that the Land Public Transport Commission (SPAD) is still gathering feedback on these ride-sharing services. It still hasn’t come to a conclusion on how to regulate these services as they continue to operate. Yesterday, the government confirmed that Uber will not be banned, but will be regulated accordingly. Today, outraged taxi drivers have blocked Jalan Bukit Bintang to protest against these ride-sharing services.

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Chris Aaron

With an equal passion for fast cars and everyday workhorses, Chris Aaron maintains a passion for European makes, Formula 1, playing the electric guitar and spending endless hours on the PlayStation - first-person shooters and the Gran Turismo franchise are his favourites. He also finds it strange to have written this in the third person.

 

Comments

  • alldisc on Mar 29, 2016 at 1:01 pm

    And that is why uber prefer to operate on its own. Making do without all sorts of regulations. And yet still capable of providing higher quality of service at a more reasonable rate.

    Like or Dislike: Thumb up 15 Thumb down 2
  • dodgeviper88 on Mar 29, 2016 at 2:21 pm

    Please do not refer ride-sharing as a taxi. Not to mention Malaysian taxi drivers which is known worldwide, a taxi by itself is bought just to provide transportation on the road. This means resources and raw materials used just for transportation.
    Ride sharing apps like Grab & Uber are utilizing cars that are already owned which if not for Grab/Uber will just sit idle at home.
    One thing good about it being legalized is the hope that these taxi thugs would stop vandalizing & harassing Grab/Uber drivers anymore.

    Like or Dislike: Thumb up 7 Thumb down 0
  • longjaafar on Mar 29, 2016 at 2:33 pm

    Making them pay for commercial insurance is also to make it more expensive for Uber drivers, and perhaps appease the taxi drivers. My guess is that taxi drivers will never be satisfied, until they have a monopoly and charge anyhow they like.

    Like or Dislike: Thumb up 9 Thumb down 1
  • Consumer on Mar 29, 2016 at 3:40 pm

    The RM50 inspections is not the main cost for taxi and not significant at all in order to help the taxi to reduce operation cost.

    Like or Dislike: Thumb up 5 Thumb down 0
  • Kent Lim on Mar 29, 2016 at 4:09 pm

    The article stated “government is also said to be looking at different ways to relieve some of the financial burden faced by taxi drivers. Kaprawi suggested that one way would be to reduce the frequency of the RM50 Puspakom inspections that taxi drivers are faced with. From having to undergo the inspections twice every year, this may be reduced to just once a year”

    Its interesting that safety is compromised to support cost cutting?! Why can’t the govt just give RM50 rebate to the taxi drivers? or ask the taxi companies to charge less rent?

    Like or Dislike: Thumb up 7 Thumb down 0
  • LOK CHYI YEU on Mar 29, 2016 at 4:31 pm

    Taxi driver issue, is each month need to paid greedy company holding the license that do nothing. They open their hand and each month around RM1200 need to paid to them eventhough the car they rent to you is a shitty Proton Saga which is on the road for more than 8 years.

    Way to solve it. Taxi driver quit their taxi job and join uber. No more paid to the greedy Government related company. Drive your own car and earn every bit of money that you get to keep.

    Like or Dislike: Thumb up 16 Thumb down 0
  • transformer on Mar 29, 2016 at 5:44 pm

    If Gov start legalise Apps based ride then Taxi driver should return their Taxi back to owner. Stop being a Taxi driver, jump to Uber or Uber-X.

    No more Taxi in MY that was reknown for its negative impression.

    Like or Dislike: Thumb up 10 Thumb down 0
    • alldisc on Mar 30, 2016 at 11:40 am

      We have discussed it with SPAD and they’ve done their lab (tests) and what I was briefed on is that they’ll try to regulate these apps,” said Kaprawi. “

      Take note what he said. They will try. Nice. Don’t know yet how.

      Like or Dislike: Thumb up 0 Thumb down 0
  • Uber and Grab are haram

    Like or Dislike: Thumb up 2 Thumb down 11
 

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