Grab and AXA Insurance Singapore have launched AXA Pay-As-You-Grab (AXA PAYG) – a usage-based commercial motor insurance for private-hire car drivers.
Touted to be the first in Southeast Asia, the policy enables drivers to pay insurance premiums calculated on a ‘per kilometre’ basis. It will first be launched in Singapore and subsequently rolled out to five other countries with Grab services.
According to Lim Kell Jay, head of Grab Singapore, this move is a response to the increasing need for flexible safety solutions for private-car drivers in Singapore to help manage their operational costs. AXA PAYG will reduce cost barriers to entry for new drivers and help to grow the supply pool to meet Singaporean commuters’ demand.
“This is part of Grab’s commitment to helping our drivers maintain sustainable livelihoods by managing operational costs such as insurance, rental, fuel and mobile data plans,” Lim said.
Doina Palici-Chehab, CEO of AXA Insurance Singapore, adds that the new pricing model will allow both drivers and passengers to enjoy savings and a better peace of mind on the road.
“We identified that one key barrier for drivers, especially part-time drivers, is the regular fixed insurance premium model. With flexi driving hours, paying a fixed insurance premium does not make economic sense for them,” Palici-Chehab said.