Uber, GrabCar insurance issues demanded to be clarified

The taxi authorities and passengers have called for more clarity about how private hire cars used by GrabCar and Uber are insured, reported The Straits Times. They were reacting to Tuesday's announcement that the Government plans to regulate the private hire sector through the licensing of drivers and registration of vehicles. It did not mention insurance needs.

The National Taxi Association has called for standardisation of coverage for the private hire sector. The Straits Times readers have also written in asking whether they are covered by insurance when they take Uber and GrabCar rides. Mr. Derek Teo, Chief Executive of the General Insurance Association, said, "If they are providing a service to the public, they have a responsibility to ensure that the safety of passengers is being addressed, including any possible liability."

Asked what policies they sold to Uber and GrabCar drivers or their fleet owners, insurers Aviva, AXA, Great Eastern and Prudential all declined to comment.

Mr. Lim Kell Jay, Head of Grab Singapore, said commercial insurance coverage for private hire vehicles "is subject to proof of liability and excess charges", adding that "some drivers may choose to cover third-party only, which is commonly the case." Mr. Lim said GrabCar offers a free additional layer of coverage on top of commercial insurance for all rides through an AXA personal accident insurance policy.

He said both driver and passenger are covered in the event of accidents from the first dollar - regardless of who is at fault. In Singapore, the policy will sponsor total personal accident benefits for the driver or passenger up to S$338,000 per vehicle.

Uber Singapore General Manager Warren Tseng said in the event of an accident, passengers can claim against the driver's compulsory insurance. Meanwhile, both Uber and GrabCar have lowered the minimum age for drivers to 21, from 25 and 22 respectively.