E-hailing drivers are facing escalating financial pressure as insurance premiums continue to surge, with some seeing annual costs more than double.
Persatuan Penghantar P-Hailing Malaysia (Penghantar) deputy president Abdul Hakim Abdul Rani said the steep rise has hit drivers hard, as e-hailing insurance is mandatory before drivers are allowed to operate.
“The burden is heavy. Some drivers are even taking loans just to renew their coverage,” he said.
One driver from the association reported his premium jumping from RM615 for 2024/2025 to RM1,710 for 2025/2026, marking an increase of over 150%.
He added that while daily insurance options do exist, the rates for those have also increased, causing some drivers to quit the industry as they can no longer afford the premiums.
“We strongly hope that a comprehensive engagement session can be held to address issues and challenges within the gig industry, particularly the e-hailing sector,” said Abdul Hakim.
Grab Drivers Malaysia Association president Mohd Azril Ahmat said an insurance company had hiked the e-hailing premium from RM500 last year to the current rate of RM945.
“Yes, drivers can still earn, but the margin is getting thinner,” he said, noting that rising maintenance and spare-part costs are compounding the strain on drivers.
Mohd Azril suggested introducing a ceiling rate for e-hailing insurance premiums, saying the absence of clear guidelines has allowed insurers to set their rates freely.
“There is no fixed rate, no benchmark at all. Without regulation, insurance companies can raise or lower premiums as they see fit.
“We are really feeling the pressure right now, especially with the intense competition among e-hailing operators, causing fares to be lower than they should be,” he said.
Rakan Representative Committee (RRC) spokesperson Shanlee Tan Shamsuri said premium hikes are expected to continue every six months or annually, adding that the number of insurers offering daily coverage has dropped from 10 companies to just five in a year.
“This leaves drivers with fewer affordable options. For full-time drivers, staying on the road is becoming financially precarious,” he said.
The RRC has proposed several measures to ease the burden, including reviewing insurance liberalisation, imposing temporary limits on annual increases, improving transparency in claims data, offering targeted support for lower-income drivers, and introducing a more affordable basic policy for low-risk drivers.
Shanlee said drivers are “not asking for charity” but for fairness and sustainability.
“If costs keep rising, more drivers will be forced to quit and this will ultimately impact service quality and e-hailing accessibility nationwide,” he said.
E-hailing insurance, introduced in 2017 as an add-on to private car comprehensive policies, provides extra coverage for passengers and personal accident protection for drivers.
Several groups, including government Bayan Baru MP Sim Tze Tzin, had called on Bank Negara to intervene after policyholders of investment-linked medical insurance plans reported drastic cuts in their coverage years.
