Uber, Grab drivers need commercial insurance – gov’t

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It has been announced that drivers of ride-sharing services will soon have to buy commercial insurance if they want to continue operating their businesses legally. According to the New Straits Times, deputy transport minister Datuk Aziz Kaprawi made the announcement and said that further details will be revealed in due time.

Taxi operators have long been subject to having commercial insurances which offer a degree of protection to their customers in the event of an accident. Uber and Grab (previously known as GrabCar) drivers been operating as private vehicle owners that offer “rides” for a fee.

But soon, it looks like the government will make it compulsory for Uber and Grab drivers to buy commercial licenses in order to continue their operations. The move is seen as one that will better regulate these services.

“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,” said Kaprawi.

As previously reported, the Land Public Transport Commission (SPAD), the Transport Ministry and several representatives from ride-sharing companies such as Uber and Grab, are in the middle of discussing the outcome of these ride-sharing services.

It was also reported that while Uber and Grab’s operations may be on the path to being legalised, it will have to adhere to several key terms – many of which regular taxi drivers typically encounter. On top of having commercial insurances as mentioned, periodic vehicle inspections by Puspakom is likely to be another requirement. No timeline has been provided as to when a final outcome on the matter would be tabled.

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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

  • 1Look on Jan 29, 2016 at 6:40 pm

    This seems fair….

    Like or Dislike: Thumb up 11 Thumb down 2
    • Safety on Jan 29, 2016 at 10:12 pm

      Better for passengers and driver too. Probably most of the unsafe Myvi and Vivas UberX cars will be off the roads. Government should also force Uber cars to go through Puspakom check every 6 months and driver health check every year.

      Like or Dislike: Thumb up 2 Thumb down 2
  • alldisc on Jan 29, 2016 at 10:20 pm

    Tell us. How can govt regulate uber? All the cars are unmarked.

    Like or Dislike: Thumb up 2 Thumb down 0
  • So caring la gomen nie on Jan 30, 2016 at 10:06 am

    Bodoh punye menteri and bodoh punye implementation. Uber and Grab is legal. You gome ppl just want to pressure them with so many rules so you can get bribes. U tink ppl tink,,you do this for ppl safety… Nah!!! Take my finger!!!! If you so care about ppl, you would not let so many milotins taxi’s on the roads, cheating drivers, not safety at all taxis in the road and etc2….

    Like or Dislike: Thumb up 5 Thumb down 0
    • If its so legal, why it was banned in Germany, France, Korea, etc?

      Like or Dislike: Thumb up 2 Thumb down 2
      • Donkey J on Jan 30, 2016 at 11:07 pm

        talk after review Malaysia taxis infamous ranking. Or else try one

        Like or Dislike: Thumb up 2 Thumb down 1
        • Doesnt matter. Its either legal or illegal. Just becoz police is useless, doesnt gip u the right to illegally own a gun.

          Like or Dislike: Thumb up 0 Thumb down 2
    • Gila-san on Jan 31, 2016 at 12:55 am

      It’s not for passenger safety…. it’s for passenger protection… in case of any accidents… those uber driver normal car insurance doesn’t cover the passenger, even worse those driver won’t even be able to claim insurance coz they breached the insurance agreement by using their car as commercial vehicle… stop being childish and comment reasonably…

      Like or Dislike: Thumb up 1 Thumb down 0
  • Better protection to passengers it seems. Furthermore, only committed uber driver will go for it,thus will prevent culprit/rapist/criminals from act as uber driver hopefully. The downside is maybe will effect the uber fee a bit.. Just my opinion.

    Like or Dislike: Thumb up 0 Thumb down 0
  • Uber Driver In Penang on Feb 01, 2016 at 12:27 pm

    Uber already has their own insurance protection for their passengers, I don’t see any point why commercial insurance is required.

    Like or Dislike: Thumb up 3 Thumb down 0
 

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