Grab – Ride-hailing platform offers free accident cover

Grab, Southeast Asia’s leading ride-hailing platform, has announced free group Personal Accident Insurance (PAI) coverage for GrabCar and GrabBike passengers and drivers across the region. This is a first-of-its-kind policy provided by a ride-hailing platform and is an excellent example of product innovation for the “sharing economy”.

How Grab Rides Are Covered:

This policy provides an additional layer of free insurance on top of commercial auto insurance, which has differing coverage terms for drivers and passengers.

The initiative has been rolled out across the 28 markets that Grab is present in and covers accidental death, permanent dismemberment and bodily injuries which may arise during the course of a journey. Furthermore, the policy covers both drivers and passengers with the coverage limit set at US$250,000 per vehicle.

Ultimately, what Grab has done means passengers and drivers can enjoy complete coverage when using the service. Sounds like a winning strategy as it will attract both drivers and passengers to the Grab platform along with allowing insurers to play their part in the emerging digital ecosystem.

Benefit to Customers

• GrabCar / GrabBike passengers and drivers enjoy greater peace of mind when they take rides with Grab. The group PAI makes certain that they are covered against personal accidents, as some commercial insurance purchased individually by the drivers covers only third-party.
• Grab provides this additional insurance coverage at no charge to its users.

Benefit to the Insurer

• Providing a need-based insurance solutions which are not offered by traditional providers.
• Attract more drivers and passengers to its platform.

With the success of tech enablers like Grab and Uber, the concept of sharing assets on a peer-to-peer, real-time basis is emerging in multiple industries, such as healthcare, transportation, real estate and hospitality. In this case, traditional auto insurance policies have been unable to evolve to provide coverage for users of ridesharing programs, thus provoking innovators such as Grab to test new policies such as these.

Grap provides free PAI to drivers and passengers