Singapore: AXA and Grab launch first-of-its-kind scheme for ride-hailing industry
Source: Asia Insurance Review | Jun 2016
Grab and AXA Insurance Singapore have launched Southeast Asia’s first usage-based commercial motor insurance for private-hire car drivers. Called AXA Pay-As-You-Grab (AXA PAYG), the policy is a tailored solution that caters to the need for flexibility by private-hire drivers who only pick up passengers part-time.
Pay as you grab
The policy allows drivers to pay their premiums on calculated on a “per km” basis, saving up to 30% off commercial auto base premiums. Drivers pay a flat rate of 70% of their commercial premiums (which equates to the same amount they would pay for non-commercial insurance), with an additional cost of S$0.06 (US$0.04) per km they drive while ferrying passengers utilising Grab’s ride-hailing service, to a cap of 100% of their base premium. AXA PAYG also allows drivers to pay their premiums in 12 month instalments.
This is the latest step Grab has taken to promote comprehensive safety and insurance coverage, after the launch of their free Personal Accident Insurance (PAI) for its drivers. AXA PAYG provides coverage for third party liability (including passengers) such as injury or death of a third party, and covers third party property damage.
No price tag to safety
“With over 40% of our GrabCar drivers driving less than 10 hours weekly, this is a growing segment which needs flexible safety solutions and help to manage their operational costs,” said Mr Lim Kell Jay, Head of Grab Singapore. “AXA PAYG will reduce cost barriers to entry for new private-hire drivers and help to grow the supply pool to meet Singaporean commuters’ demand,”
Mr Lim also shared plans to expand AXA PAYG to the five other markets with Grab services in the near future (Thailand, Philippines, Indonesia, Malaysia and Vietnam).
CEO of AXA Singapore Mrs Doina Palici-Chehab also talked about their plans to utilise telematics to further innovate their products. She said: “AXA aims to move from fixed insurance pricing to per km pricing (AXA PAYG) to more behavioural pricing (Pay As You Drive) in the future.”