KUALA LUMPUR (April 27): E-hailing operators are still awaiting a decision from the government on whether to classify their services as private or commercial, said Grab Malaysia country head Sean Goh.

"The government via the Land Public Transport Commission (SPAD) has yet to decide on the tier of services that ride hailing companies are offering,” said Goh.

“We will be waiting for the government to make the relevant announcement," he told reporters after launching Grab's first ride-hailing passenger loyalty programme in Subang Jaya today.

The need to distinguish the type of services that e-hailing operators are offering is "technically important", said Goh, as it will provide clarity to not just the transport industry but also to other spillover sectors such as insurance.

"Right now, Grab is not officially classified as a commercial services provider. We want to ensure that there is no gap in insurance coverage for our drivers and passengers. For this matter, we have rolled out group personal insurance to protect the safety of Grab stakeholders," he added.

Last year, Deputy Transport Minister Datuk Abdul Aziz Kaprawi said e-hailing operators such as Grab and Uber will be required to purchase the same commercial insurance as regular taxis to continue operating on Malaysian roads.

"The most important thing is that Grab Malaysia provides a safety net to all its stakeholders, which include auto insurance and personal accident," said Goh, adding that the e-hailing operators will comply with the latest insurance coverage scheme announced by the government.

"For now, our insurance coverage for Grab drivers and passenger is adequate," he said, adding that Grab has engaged Great American Insurance Co to provide insurance coverage of up to US$10,000.

In February, General Insurance Association of Malaysia chairman Antony Lee said the clarity on the services provided by e-hailing operators is essential for general insurance companies to design a relevant product that suits the transport industry needs.

Goh also welcomed the government's decision that self-employed taxi drivers, as well as Grab and Uber drivers, must be covered under the Employment Injury Scheme (EIS).

"This is a good initiative as our drivers have received recognition by the government. I'd say that this is a boon for ride-hailing operators," he said.

From June 1, some 73,000 taxi drivers and 35,000 active Uber and Grab drivers are expected to be covered under the scheme.

On the government's move to table a Bill to officially legalise and recognise e-hailing services providers, Goh said: "This will create a regulatory environment that is expected to be conducive for e-hailing players."

Last month, the government tabled an amendment to the Commercial Vehicles Licensing Board Act 1987 in Parliament, to provide for the licensing of vehicles used to provide e-hailing services.