Grabhitch Insurance- Are you covered?
Grabhitch- does your car insurance covers Grabhitch?
Grab hitch in Singapore is a recent social carpooling that Grab has popularised and made easy, similar to Ryde, that proclaimed itself as Singapore’s #1 social carpooling.
However, there are many misunderstandings on what insurance does cover, and many riders were even rejected by Grabhitch Drivers if the person who is taking the ride is not the same as the person who booked, due to insurance concerns. Please read on to find out why it may not matter
Grab – PA insurance for GrabHitch and GrabCars
Grab has bought PA insurance (Personal Accident Insurance) for Grabhitch, but many hitch drivers seems to have the misunderstanding that riders and them are covered for their car insurance fully, in case of any accident. Well, the bad news is, Grab’s insurance for Hitch rides are so limited you probably have to rely on the driver’s motor insurance or third party’s motor insurance anyway.
Grab’s insurance only covers death and permanent disablement (both of which are submit to a limit of US$15,000) and 12 months of medical expenses (up to US$50,000 per accident). The insurance plan does not cover pain and suffering, loss of pre-trial/future earnings/earning capacity, transport expenses or other claims. The latter group of heads of claims would be the bulk of most personal injury claims, not medical expenses.
If you do get hit with permanent disablement, you would realise that the limit of US$15,000 is extremely low. Your medical expenses are also likely to span more than 12 months. So Grab PA insurance is very minimal.
What if the Grabhitch rider is NOT the same as the booker?
Yes, if the Grabhitch rider is NOT the same as the person who book via the app, Grab term and condition may not cover them. This is to protect Grab in case of people gaming the system. Grab is definitely aware that there are many people booking Grabhitch for someone else (many parents or children of ours still not tech savvy) This is not meant to deny their PA insurance to any riders in any accident. It is my opinion that Grab and insurer would probably allow the insurance payout to happens- goodwill and publicity is such an important corporate matters now.
However, the main issue is that the Grab’s PA is such a small amount, in most situation you have to claim on your own motor insurance.
Does your motor insurance covers carpooling?
If the driver’s motor insurance covers carpooling, it would cover even if it involves a different person. The identity of the rider does not matter for motor insurance coverage in the event of personal injury due to a motor accident.
If the driver’s insurance does not cover car pooling, then the rider can either make a personal injury claim against the driver himself and the driver’s insurer is required by law to pay you. The insurer will then claim back from the driver and repudiate the policy if it takes the view that the driver has breached the policy conditions.
Other than that, as the rider, you also have another option and in fact, should also claim from the other party’s insurance for complete coverage. Say your driver is 20% at fault, and the other party is 80% at fault, to get back your full damages, you need to claim both parties. Again, the other party’s insurer will pay you irrespective of whether you are the named app rider or not.
Conclusion – your motor insurance payout does not care who is the person booking the ride
For drivers, whether or not your rider is the same person as the one who takes the app does not prevent you from claiming under your own motor insurance policy (if it covers car pooling in the first place) or claiming from the third party. Grab’s PA insurance does not cover property damage to your car in the event of an accident, and as noted above, is of limited purpose when it comes to your own personal injury claims.
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