New pay-as-you-use insurance for part-time Grab drivers

A new pay-as-you-use motor insurance policy for private hire car drivers has been launched, to help part-timers lower their premiums and attract newcomers to join the industry, reported The Straits Times. 

Launched jointly by AXA Insurance Singapore and transport app Grab, it is targeted at drivers who ferry passengers for fares under the GrabCar chauffeur service. It aims to encourage more private car owners to drive for Grab, by reducing upfront costs like commercial motor insurance, which can cost around $3,000 annually - about 30 to 50 percent more than a regular car policy for private use.

Head of Grab Singapore Lim Kell Jay said commercial motor insurance need not be prohibitive. "We are making it more affordable for new drivers who may be sitting on the sidelines," he said. While there are an estimated 6,000 to 8,000 full-time private hire car drivers here, Mr Lim said part-timers can boost the "transient supply" of cars that ferry passengers during peak hours.

Called AXA Pay-As-You-Grab, the policy can help drivers save up to 30 percent on their commercial auto insurance premiums, AXA and Grab said. Policyholders pay 70 percent of the base premium, and another six cents per kilometre driven, capped at 100 percent of the base premium. Mileage is clocked using the Grab app whenever a driver takes on a GrabCar job, but not when he is using the vehicle for personal travel.