AXA Insurance Singapore has launched its Pay-As-You-Grab (AXA PAYG) commercial motor insurance for private-hire car drivers in Southeast Asia.
The company has partnered with Grab and launched its flexible usage-based insurance first in Singapore.
AXA PAYG policy enables drivers to pay insurance premiums calculated on a 'per kilometre' basis, which saves up to 30 percent off commercial auto insurance base premiums.
Singapore's launch will be followed by AXA PAYG's roll out to five other countries with Grab services in the near future.
"AXA PAYG will reduce cost barriers to entry for new PHV drivers and help to grow the supply pool to meet Singaporean commuters' demand," said Lim Kell Jay, head of Grab Singapore. "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. With global insurer partner AXA, we're planning to offer this to GrabCar drivers in all the markets Grab operates."
12 months instalments
AXA PAYG allows drivers to have the flexibility to pay insurance in 12 months instalments.
Coverage is provided for third party liability (including passengers) such as injury or death of a third party. Third party property damages are also covered in this policy.
Private-hire car drivers are typically charged a fixed annual premium at one go, however, AXA PAYG drivers pay a flat rate of 70 percent of the base premium, and an additional US$0.04 per km driven on Grab rides, capping off at 100 percent of their base premium.
In other words, drivers never pay more than their traditional commercial auto insurance premiums, and only pay as they Grab.
"As a leader in motor insurance in Singapore, AXA aims to move from fixed insurance pricing to per-KM pricing (Pay as You Go) to more behavioural pricing (Pay as You Drive) in the future," said CEO of AXA Insurance Singapore, Doina Palici-Chehab. "We are confident AXA PAYG will support Grab's ambition to 'Drive Southeast Asia forward' and will continue developing innovative insurance solutions to meet the practical needs of our customers."
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