Taxi drivers’ group accuses Uber, Grab drivers of insurance fraud

Some ride-hailing drivers allegedly lie when making motor insurance claims

Taxi drivers’ group accuses Uber, Grab drivers of insurance fraud

Insurance News

By Gabriel Olano

An association of taxi drivers in Malaysia has accused some drivers of ride-hailing services Uber and Grab of lying about the cause of accidents in their motor insurance claims.

According to Malaysian Taxi Drivers’ Transformation Association deputy president Kamarudin Hussain, some Uber and Grab drivers are being told to lie whenever they are involved in a road accident. He alleged that these drivers delete the ride-hailing app from their phone after an accident to claim motor insurance, which will not be paid out if proven that a private vehicle was used for commercial purposes.

Kamarudin said that these drivers are committing fraud, and that this would cause insurers to charge higher motor insurance premiums for everybody.

“This is unfair as it will not just affect certain people but all Malaysians will also feel the heat,” Kamarudin told Free Malaysia Today.

Kamarudin, however, recognised the need for the taxi industry to improve itself and become more competitive against the likes of Uber and Grab.

“Local taxi companies should be smart at times like this. They should create better promotions such as Uber and Grab are doing right now,” he said. “This will definitely attract more customers.”

The amendments to the Land Public Transport Act of 2010, which will regulate the ride-hailing services sector, were tabled in Parliament in April, and debates are expected to begin next month.

Related stories:
21 Uber drivers arrested in Hong Kong
Despite more car accidents in Singapore, insurance claims are down
Vocational licenses now mandatory for Uber and Grab drivers

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