KUALA LUMPUR: Insurance premiums for e-hailing drivers, which have risen by more than 40 per cent, place a heavy burden on drivers and jeopardise the industry's overall competitiveness, says the eHailing Malaysia Coalition (GEM).

GEM chief activist Jose Rizal called for a reassessment of the insurance liberalisation policy and the establishment of price control mechanisms for insurance premiums.

"GEM wishes to express its support for the concerns raised by various parties regarding the sharp increase in health insurance premiums, an issue currently sparking significant public debate.

"We believe that this rise not only places undue pressure on the public at large but also adversely affects the gig worker community, particularly e-hailing drivers, who are now facing similar challenges with additional e-hailing insurance premiums.

"The additional insurance premiums for e-hailing drivers have been increasing by more than 40 per cent annually without clear justification.

"This escalation not only burdens drivers, but also threatens the overall competitiveness of the e-hailing industry," he said in a statement.

During engagement sessions with Bank Negara Malaysia (BNM), it was learnt that the rise stems from the liberalisation of the insurance industry and existing laws that allow insurers to set rates at their discretion, he said.

"However, we are of the view that this explanation should not be used as a justification to permit insurers to act unchecked and without proper oversight.

"The question arises, if BNM itself admits that it cannot control this situation, who should be held accountable?

"Are we, as citizens and gig workers, left with no choice but to watch as these giant insurance companies operate with impunity?" he said.

He said the authorities should reassess the insurance liberalisation policy, which grants excessive freedom to insurance companies in determining premium rates and establish price control mechanisms or set reasonable annual increase limits to protect the public, particularly gig workers who are increasingly under pressure.

He called for more inclusive public consultations before implementing any decisions regarding insurance premium hikes.

"We firmly believe that this issue requires immediate attention to safeguard public welfare and ensure fairness within Malaysia's insurance system.

"GEM remains committed to advocating for the rights and well-being of e-hailing drivers and other gig workers in this matter," he said.

https://www.nst.com.my/news/nation/2024/11/1141816/insurance-hikes-threaten-e-hailing-industry-competitiveness-warns-gem