KUALA LUMPUR – Malaysia’s rapidly expanding e-hailing industry is facing increasing pressure over the lack of flexible and affordable insurance solutions for drivers, raising concerns about the long-term sustainability of protection within the country’s gig economy ecosystem.
Industry observers and driver representatives say current insurance structures remain heavily designed around traditional employment and vehicle ownership models, leaving many part-time and flexible e-hailing drivers struggling with annual insurance commitments that do not reflect the realities of gig-based work.
According to e-hailing industry expert and Chief Activist of Gabungan eHailing Malaysia (GEM), Jose Rizal, whose real name is Masrizal Mahidin, the issue has become increasingly urgent as more Malaysians rely on e-hailing platforms as a supplementary or full-time source of income.
“Most drivers are still required to commit to yearly insurance coverage even though many only drive part-time or operate a few days a week. This creates unnecessary financial pressure on drivers who are simply trying to earn additional income,” he said during an industry discussion on the future of e-hailing insurance accessibility in Malaysia.
While e-hailing insurance is compulsory under existing regulations to ensure passenger and driver protection, industry players argue that current offerings remain too limited and insufficiently tailored to the flexible nature of gig work.
GEM revealed that discussions are currently ongoing with industry stakeholders, including insurance providers and regulators, to explore more practical alternatives such as daily or usage-based insurance models that allow drivers to pay only when actively operating on the platform.
“The gig economy has evolved rapidly, but insurance structures have not evolved at the same pace. Drivers need protection that reflects how they actually work,” Jose Rizal added.
The debate around insurance accessibility has also intensified amid wider national discussions concerning gig worker welfare, cost of living pressures, and platform sustainability. Industry stakeholders believe more flexible insurance frameworks could help reduce barriers for new drivers entering the sector while improving overall compliance and safety standards.
“There must be stronger collaboration between regulators, insurers, e-hailing platforms, and driver associations to create solutions that are both affordable and sustainable,” he said.
Industry observers warn that failure to address these structural issues could continue placing financial strain on drivers while slowing broader efforts to professionalise and strengthen Malaysia’s e-hailing ecosystem.
GEM also raised serious concerns over the uneven availability of daily insurance structures across different e-hailing platforms.
While selected operators currently benefit from flexible daily insurance arrangements, many compliant and legitimate platforms that remain excluded from equivalent access with insurance companies that have agreements with industry leaders that simply refuse to cooperate with new market players
According to GEM, this imbalance creates structural inequality that directly affects driver mobility and market fairness.
“When daily insurance access is selectively available, drivers become commercially trapped within certain ecosystems. Switching platforms becomes financially irrational, not because of service quality or commercial preference, but because structural insurance limitations effectively lock participation into selected operators. This undermines healthy competition and creates conditions that may unintentionally encourage concentrated market dominance.”
Importantly, GEM confirmed that it is currently engaged in ongoing close and regular discussions with Bank Negara Malaysia (BNM) as part of broader efforts to explore practical and sustainable solutions to these structural insurance challenges.
According to the organization, these engagements reflect growing institutional recognition that gig-economy insurance frameworks must evolve in tandem with Malaysia’s digital labour transformation.
“We appreciate the openness and seriousness demonstrated by Bank Negara Malaysia in engaging with the realities faced by gig workers. These discussions are critical because sustainable reform requires regulatory innovation, actuarial recalibration, and policy courage from all stakeholders.”
GEM emphasised that discussions with Bank Negara Malaysia are focused on identifying practical pathways toward:
- broader industry-wide access to different usage of e-hailing insurance implementation
- fair and transparent approval mechanisms for all operators
- actuarially sustainable usage-based protection frameworks
- cross-platform insurance portability
- long-term development of a standardised national gig insurance model
As conversations continue between industry representatives and policymakers, driver groups maintain that insurance reform will remain one of the most critical issues shaping the future of Malaysia’s gig economy sector over the coming years. - May 22, 2026
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