Proposal to allow taxis to deliver goods could run into insurance issues

“Regulatory sandbox” could help resolve concerns about insurance and other matters, says MP

Proposal to allow taxis to deliver goods could run into insurance issues

Insurance News

By Gabriel Olano

The National Taxi Association (NTA) of Singapore has asked the government to allow taxi drivers to deliver goods on a trial basis, after the Land Transport Authority said that taxis and private-hire cars cannot be used for this purpose.

Several Members of Parliament have also expressed support for the proposal, saying that this could help maximise the use of existing vehicles on the road and lessen dependence on vehicles.

However, there has been concern about insurance cover for the goods being delivered, in case the items get damaged during travel.

In response, the NTA will propose the creation of a “regulatory sandbox” to allow taxi drivers to make deliveries on an experimental basis, which will allow authorities to make the needed studies before making changes to existing regulations.

“If we don’t allow private-hire car or taxi drivers to do these deliveries, what it basically means is these deliveries have to be done by somebody else ... instead of using the same driver (and) car to do multiple work,” Ang Hin Kee, NTA executive adviser and Member of Parliament for Ang Mo Kio group representation constituency, told Today.

According to Ang, the regulatory sandbox can cooperate with insurers to provide wider insurance coverage to include the goods being carried by taxis.

Another MP, Patrick Tay, said that laws must be constantly reviewed and updated to keep up with the disruption brought about by new technologies.

“Whatever helps enhance the livelihood of working people, and if it doesn’t cause any inconvenience, they should be given the latitude to do so,” said Tay, who is also assistant secretary-general of the National Trades Union Congress (NTUC).

There have been reports that freelance drivers, who usually drive for ride-hailing firms Grab and Uber, have begun making deliveries for Amazon’s Prime Now service. Amazon has also hailed taxis for deliveries, but these were accompanied by a human passenger.


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