Malaysia passes regulation governing Uber, Grab

Companies must provide insurance for both the vehicle and passengers, says new law

Malaysia passes regulation governing Uber, Grab

Insurance News

By Gabriel Olano

The Malaysian Parliament’s lower house has passed the Land Public Transport (Amendment) Bill 2017 which legalises ride-hailing firms such as Uber and Grab.

According to a minister in the Prime Minister’s Department, Nancy Shukri, ride-hailing companies will have to submit the records of their drivers to the Land Public Transport Commission (SPAD), which will conduct background investigations before they are allowed to drive.

“The companies will have to give the drivers’ identities to SPAD. Even temporary Uber and Grab partners,” Shukri was quoted as saying by Free Malaysia Today at the winding-up debate. “Potential drivers will be screened for the safety of passengers.”

With the passing of the bill, ride-hailing companies must have an intermediation business licence and follow the rules of the Commercial Vehicles Licensing Board.

Like regular taxi drivers, Uber and Grab drivers are required to undergo regular vehicle and health check-ups, and they must have commercial driving cards and insurance coverage for both the vehicle and its riders, in case of an accident.

Shukri added that all complaints pertaining to ride-hailing companies and drivers will be handled by SPAD, which will take the necessary actions.

Related stories:
Ride hailing firm Grab announces insurance launch
Taxi drivers’ group accuses Uber, Grab drivers of insurance fraud
Malaysian government yet to classify ride-hailing services as private or commercial

Keep up with the latest news and events

Join our mailing list, it’s free!