In a bid to assist its drivers in complying with new ride-hailing regulations, Grab has introduced its Grab Daily Insurance (GDI) – a usage-based motor insurance and takaful created in partnership with 14 insurers in the country. This provides a value-for-money option for drivers who, under new laws that came into force on July 12, have to add a specific “e-hailing” motor insurance/takaful on top of their existing coverage.

Grab estimates that purchasing conventional yearly coverage will cost drivers an extra RM400 to RM500 upfront. With GDI, they will be able to purchase the additional insurance at between RM1 and RM2 per day, giving them the ability to pay only for what they need. That’s useful, especially considering the fact that around 80% of them drive part-time, supplementing their monthly income by up to 37% on average.

Drivers will be able to opt into the service when they go online via their driver app, with the money being deducted from their GrabPay Credit wallet. The coverage will be valid for 24 hours, with all rides within that period being covered by the ride-hailing insurance.

The policy covers covers vehicle loss or damage, passenger and third-party liability and personal accident coverage throughout the driver’s time under the employment of Grab. Drivers will need to ensure that their existing motor insurance or takaful coverage is already being provided by one of Grab’s panel of insurers.

“The introduction of GDI is yet another way we’re enhancing and setting the standard for the transportation industry in Malaysia, making our platform even more accessible and inclusive as a source of income for Malaysians,” said Grab Malaysia country head Sean Goh. “Within less than a week of being rolled out, more than 20% of our driver-partners have chosen to opt into the new e-hailing motor insurance.”