Bank Negara Malaysia (BNM) is working with general insurers and government agencies to address rising insurance costs for ride-hailing drivers, following complaints about steep premium hikes across the segment.
The central bank told The Star it is “exploring potential solutions together with the insurance industry and key stakeholders to make e-hailing insurance more accessible, affordable, and sustainable”. The statement followed an appeal from Persatuan Penghantar P-Hailing Malaysia (Penghantar), a labour and advocacy organisation representing food and goods delivery riders and p-hailing (motorcycle delivery) drivers in the country, which earlier urged BNM to reassess pricing practices for ride-hailing coverage.
Driver groups have reported significant premium escalation. Penghantar said some members are struggling to renew their policies, with one driver’s annual premium rising from RM615 (US$148.75) to RM1,710, an increase of more than 150%.
Another association, Grab Drivers Malaysia, said a separate insurer had increased its e-hailing premium from RM500 to RM945. Some drivers have reportedly resorted to taking loans to pay for coverage, while others have left the sector due to mounting costs.
BNM said premiums for e-hailing vehicles reflect “significantly longer driving duration and mileage compared to private cars”, and that rising repair and labour expenses have pushed up claims costs in the wider motor segment. It acknowledged that some general insurance and takaful operators (GITOs) have adjusted premiums to match claims experience, while others have scaled back participation due to the segment’s risk profile. The central bank stressed its oversight role to ensure that any increase is “fully justified”.
As part of broader reforms, BNM said it is studying measures related to road safety, telematics adoption, data sharing and accident reduction. The central bank is also expanding engagements with e-hailing associations to promote understanding of coverage and encourage safer driving behaviour.
The General Insurance Association of Malaysia (PIAM) said it supports the central bank’s initiatives and highlighted that rising bodily injury and property-damage costs, combined with high mileage and road exposure, have contributed to higher claims. It emphasised that insurers do not coordinate pricing and encouraged drivers to compare quotes to find suitable coverage.
Driver groups have called for further intervention, including a review of insurance liberalisation, temporary limits on annual increases and clearer transparency on claims trends, warning that more drivers may quit the industry if premiums continue to rise.
