GRAB Malaysia is offering cheaper insurance to its drivers to help them obtain the passenger service vehicle (PSV) licence, the e-hailing company said today.

The “usage-based” Grab daily insurance (GDI) and takaful can be as low as RM1 per day, a cheaper option than making drivers fork up RM400 to RM500 upfront for insurance required in order to obtain the PSV.

Drivers can purchase the insurance only when they’re online to work and pay using their driver’s wallet on the app.

Coverage will last for all rides for 24 hours, the company said.

“Drivers just need to ensure that their motor insurance or takaful provider is on our panel of insurers or takaful operators and click to opt in,” it said.

Once activated, the GDI will deduct from the driver’s credit only on the days that they go online, it added.

Grab said more than 20% of its drivers have signed up for the GDI in less than a week since it introduced the scheme.

It said about 80% of all its drivers work part time and can supplement their income by 37% more on average.

The PSV became a compulsory requirement for all e-hailing drivers last month. But following complaints of high upfront costs, the government granted a three-month grace period for all e-hailing drivers to obtain the licence. – August 6, 2019.