The government may make it mandatory for drivers of ridesharing vehicles to purchase commercial insurance which in turn may force them to charge passengers more to cover the cost.
Deputy Transport Minister Abdul Aziz Kaprawi said this is one the matters being considered as the government looks at measures to regulate app-based ridesharing services such as Uber and Grab.
He made the comment when asked whether for Uber drivers will be made to purchase more expensive commercial insurance plans as opposed to just taking out private car insurance as present.
“Yes. When the government regulates, we definitely we will install certain elements of the current taxi system into theirs (ridesharing services),” he said.
Abdul Aziz said that the government is also looking at ways to reduce taxi operating costs to benefit the drivers.
Last December, the General Insurance Association of Malaysia said private car insurance does not cover drivers who engage in ridesharing services.
Hence, the association urged Uber and Grab drivers to purchase the more comprehensive commercial insurance policy.
Abdul Aziz also urged the public to drive safe during upcoming Chinese New Year festive season.
He said that the number of road accidents and deaths has been increasing alarmingly since 2014.
“For example, the number of road accidents in 2015 increased to 489,606 compared to 476,196 in 2014, while the number of road deaths was 6,193 in 2015 compared to 6,187 in 2014.”
Abdul Aziz was speaking at a press conference after launching a road safety event in Kuala Lumpur this morning.