E-hailing services are now part of daily life in Malaysia. Platforms such as Grab, AirAsia Ride, and inDrive help people move around easily. At the same time, many Malaysians are signing up as drivers to earn extra income.
Before starting, however, one important requirement must be addressed. Every e-hailing driver needs the right insurance coverage. Without it, drivers may face claim rejections, financial loss, or legal issues. For that reason, understanding e-hailing insurance is essential.
This article explains e-hailing insurance in simple terms. It covers why it is mandatory, how it works, how to get it, and which insurers in Malaysia provide it.
What Is E-Hailing Insurance?
E-hailing insurance is an extension added to your car insurance policy. It provides coverage when your vehicle is used to carry paying passengers.
Under normal circumstances, private car insurance only applies to personal use. This includes daily commuting or personal errands. Once passengers are carried for payment, the vehicle is considered to be used for commercial purposes.
Because of this difference, insurers require an e-hailing add-on. Without that add-on, claims made during e-hailing trips may be rejected.
In short:
- Private car insurance covers personal use
- E-hailing insurance covers passenger-carrying use
Is E-Hailing Insurance Mandatory in Malaysia?
Yes, e-hailing insurance is mandatory.
According to the Ministry of Transport (MOT) and Agensi Pengangkutan Awam Darat (APAD), all registered e-hailing drivers must have valid insurance that covers e-hailing activities. As a result, most platforms will not activate a driver account without proof of coverage.
This requirement exists to protect everyone involved. Drivers, passengers, and other road users all benefit from proper insurance protection.
Official references:
- Ministry of Transport Malaysia: https://www.mot.gov.my
- APAD Malaysia: https://www.apad.gov.my
Why Private Car Insurance Is Not Enough
Many new drivers assume comprehensive car insurance already covers all situations. Unfortunately, that assumption is incorrect.
Most private motor policies exclude:
- Carrying fare-paying passengers
- Commercial driving activities
- Ride-hailing usage
Because of these exclusions, insurers may refuse claims if an accident occurs during an e-hailing trip. In such cases, repair costs and medical bills may need to be paid personally.
For this reason, adding e-hailing coverage is not optional. It is a necessary form of protection.
What Does E-Hailing Insurance Cover?
Coverage may vary between insurers. Even so, most e-hailing insurance policies include the following.
Core Coverage
- Damage to your vehicle during e-hailing trips
- Third-party property damage
- Third-party bodily injury
Passenger Coverage
- Injuries to paying passengers
- Legal liability during trips
Driver Protection
- Personal accident benefits
- Medical expense coverage (depending on policy)
Before purchasing, it is important to read the policy wording carefully.
Types of E-Hailing Insurance Available
Two main options are available in Malaysia. Each option suits a different type of driver.
Daily E-Hailing Insurance
Daily insurance works best for part-time drivers.
With this option:
- Coverage is activated only when the app is online
- Premiums are charged per active day
- Activation is done directly in the driver app
For example, daily plans often cost just a few ringgit per day. Because of that, many weekend or after-work drivers choose this option.
Annual E-Hailing Insurance Add-On
Annual insurance is more suitable for full-time drivers.
Under this option:
- Coverage remains active for the entire year
- Premiums are paid once annually
- No daily activation is required
Although the cost is higher upfront, it may be more cost-effective over time.
How to Get E-Hailing Insurance in Malaysia
Getting e-hailing insurance is a simple process.
Step 1: Check Your Existing Policy
First, confirm that your car insurance is comprehensive.
Step 2: Choose Your Coverage Type
Next, decide whether daily or annual coverage fits your driving habits.
Step 3: Activate or Purchase
Then, activate daily insurance in the app or contact your insurer for an annual add-on.
Step 4: Submit Proof
Finally, upload your insurance details to the e-hailing platform.
Insurance Companies That Offer E-Hailing Coverage
Several established insurers in Malaysia provide e-hailing insurance options.
| Insurer | Coverage Type |
|---|---|
| Allianz Malaysia | Annual add-on |
| Etiqa Insurance & Takaful | Daily & annual |
| Tokio Marine | Annual add-on |
| Zurich Malaysia | Daily & annual |
| AmAssurance | Annual add-on |
| Chubb Malaysia | Platform-based daily |
Official sources:
- https://www.allianz.com.my
- https://www.etiqa.com.my
- https://www.tokiomarine.com.my
- https://www.zurich.com.my
How Much Does E-Hailing Insurance Cost?
Pricing depends on several factors. These include vehicle type, coverage level, and policy duration.
Generally:
- Daily insurance costs RM2–RM5 per day
- Annual add-ons range from RM300–RM600 per year
Always check with insurers for updated pricing.
Common Mistakes New Drivers Should Avoid
New drivers often make preventable mistakes.
These include:
- Assuming private insurance is enough
- Forgetting to activate daily coverage
- Driving before insurance becomes valid
- Ignoring passenger liability coverage
Avoiding these mistakes reduces financial risk.
Managing Car Insurance More Easily
Managing car insurance does not have to be complicated. Platforms like MetaFin allow drivers to compare and review options online with clarity.
You can explore available car insurance solutions here:
👉 https://metafin.com.my/car-insurance-online.php?src=blog
This approach helps drivers make informed decisions with confidence.
Final Thoughts
E-hailing offers flexible income opportunities in Malaysia. However, it also requires responsibility.
With proper e-hailing insurance:
- Drivers stay protected
- Passengers feel safer
- Regulations are met
Before accepting your first ride, take time to review your insurance coverage. That simple step can prevent serious problems later.