GRAB and AXA Insurance Singapore on Wednesday launched AXA Pay-As-You-Grab (PAYG), a usage-based commercial motor insurance for private-hire car drivers that lets them pay insurance premiums calculated on a per-kilometre basis.
AXA PAYG drivers will pay a flat rate of 70 per cent of the commercial insurance base premium, and an additional S$0.06 per km driven on Grab rides; the total amount will be capped off at 100 per cent of their base premium.
Grab said: "This means drivers will never pay more than their traditional commercial auto insurance premiums."
AXA PAYG - said to be South-east Asia's first such offering - is expected to reduce cost barriers to entry for new private-hire vehicle drivers and help to grow the supply pool of part-time drivers, Grab added.
Currently, over 40 per cent of drivers of GrabCar (Grab's private-hire car service) drive less than 10 hours weekly.