Uber: Ride sharers covered by contingent liability insurance

A partner can save RM40,000 and use that as downpayment on ten MyVi, for example, open a car wash and a workshop.
KOTA KINABALU: Uber Malaysia has confirmed in an industry update that ride sharers are covered by contingent liability insurance.

“Uber trips are covered from the moment the driver accepts a trip to the moment it ends,” said Uber Malaysia general manager Leon Foong in the update reported by Daily Express.

Anything that’s not covered by the primary policy, he added, will be covered by additional policy for drivers and passengers. “The car cannot be more than 10 years old,” said Foong. “Otherwise, the contingent policy will not cover the trip.”

If a car is older than five years, he continued, “it would need a physical inspection before it’s allowed into the system”.

In reiterating that 10 years was “the absolute maximum” for a car, Foong said that Uber urges that cars be less than five years old.

Uber protects its partners (drivers), he said, but declined to reveal the nature of the protection on the grounds that it was confidential. “It’s something that we are not allowed to disclose,” said Foong. “The nature of protection for our partners is a private agreement with them.”

Uber not only creates economic opportunities but helps drivers protect them, he said. “Ride sharing drivers are entrepreneurs.”

Foong believes that mindsets and the culture is changing in favour of entrepreneurs i.e. it’s no longer about being a doctor, lawyer or engineer.

He sees no reason why a ride-sharing partner cannot save RM40,000 and use that as downpayment on ten MyVi, for example. “You can hire the 10 cars to people who can’t afford to buy a car,” said Foong. “You can then make a percentage from each of them per month.”

Another opportunity is to own a car wash but provided one owns at least 50 cars. “Once you have a car wash, you can open it to other people,” he said.

When a partner has 100 cars, he said, it’s time to own a workshop.

Ex-IT head Brian Pereira, a case study cited, generates residual income through internet marketing from a FaceBook page where he posts Uber-related snippets and attaches a link.

“I get RM100 in referral fees per person in Johor Bahru and Penang,” said Pereira. “I get RM200 per person from those based in the Klang Valley.”

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