KUALA LUMPUR, Oct 28 — The federal government is studying dynamic insurance and takaful models that price coverage based on mileage and driver risk profiles, seeking to rein in escalating vehicle operating costs across the e-hailing industry.

In a written reply yesterday to Bakri MP Tan Hong Pin in the Dewan Rakyat, the Transport Ministry confirmed that a dedicated Inter-Agency Task Force (IATF) convened by Bank Negara Malaysia is spearheading efforts to restructure e-hailing insurance mechanisms and alleviate the financial burden on drivers.

Under the framework being considered, traditional fixed annual premiums could make way for usage-based policies calculated on a per-kilometre basis alongside individual risk ratings.

The ministry explained that aligning pricing directly with actual road time and trip volume is intended to create fairer, more responsive coverage tailored to the varying work patterns of gig-economy motorists.

The task force is also evaluating the integration of telematics technology, which monitors driving habits such as speed, acceleration, and braking patterns, to incentivise safer road behaviour and mitigate crash risks.

Concurrently, the government is exploring deeper data-sharing protocols between e-hailing platform operators and underwriters to improve risk assessment accuracy and streamline accident claims verification.

The long-term reform brings together the Transport Ministry, Bank Negara, the Land Public Transport Agency (APAD), the Road Transport Department (JPJ), insurance and takaful providers, and e-hailing driver associations under a coordinated inter-agency framework.

The ministry reiterated that valid motor insurance remains a strict statutory obligation under Section 90(1) of the Road Transport Act 1987, enforced by JPJ to ensure financial indemnification for drivers, passengers, and third parties involved in road traffic collisions.

Wider social safety protections for the gig sector remain distinct from vehicular coverage, falling under the purview of the Human Resources Ministry through the Employees' Social Security Act 1969, the Self-Employment Social Security Act 2017, and the Gig Workers Act 2025.

However, the parliamentary reply stopped short of committing to an implementation timeline or projecting the expected percentage drop in premium expenses for drivers.