Grab offers free prolonged medical leave insurance to help drivers through periods of long illnesses and injuries
SINGAPORE — Grab will offer the majority of its drivers free insurance coverage that automatically protects them from loss of earnings due to illness and injuries, it said on Wednesday (Jan 16).
SINGAPORE — Ride-hailing firm Grab will offer the majority of its drivers free insurance coverage that automatically protects them from loss of earnings due to illness and injuries, it said on Wednesday (Jan 16).
Under the new prolonged medical leave insurance, drivers in the top three tiers of the firm’s rewards programme are guaranteed a daily payout that is pegged to a percentage of their average daily earnings.
They can receive a payout of between S$30 and S$200 a day, depending on the tier.
Grab has four tiers under its rewards programme, in which drivers are segregated into different categories based on factors such as the number of hours they clock in, as well as ratings given by passengers.
The new insurance plan, which comes on top of the company’s free personal accident insurance provided for drivers and passengers, does not apply to drivers in the bottom tier. However, Grab said that it is in the midst of working on an insurance coverage plan for these drivers, too.
In a statement, Grab said that the new plan is in line with recommendations that had been put forth by the Tripartite Workgroup on Self-Employed Persons, which had looked into the needs of the growing pool of freelancers in Singapore.
The growth of the gig economy has led to rising concerns that such workers lack the kind of basic medical benefits and insurance protection that salaried employees have, and that this will affect their ability to pay for medical events or save up enough for their retirement.
Last February, the workgroup suggested that firms provide insurance products tailored for freelancers that would give a daily cash benefit for hospitalisation episodes exceeding one to three days, or prolonged medical leave exceeding seven to 14 days.
Grab’s head of transport Andrew Chan said that the company is “continuously looking to push the boundaries in offering even more comprehensive support and benefits” for its drivers, adding that drivers’ earnings is an issue that is “core to their livelihoods and families”.
Apart from the roll-out of the new insurance scheme for drivers, Grab also announced on Wednesday its plan to create a digital platform to sell insurance products in South-east Asia.
Expected to be launched in Singapore in the first half of this year, the insurance products will be offered at reduced premiums through its mobile application.
This comes after it went into a joint venture with the subsidiary of Chinese Internet-based insurer ZhongAn Online P&C Insurance Co. That subsidiary, called ZhongAn Technologies International Group, will provide the technology expertise to build the new insurance platform.