Clarify terms in insurance policies on carpooling

I had participated in carpooling, both as a passenger and as a driver, but I stopped when I realised that the private motor insurance framework surrounding this practice lacks clarity.

In 2015, the Road Traffic Act was changed to allow drivers who carpool to accept monetary compensation or payment in kind, although they were not allowed to offer more than two rides a day (New carpool laws allow drivers to be paid; March 6, 2015).

Two carpooling platforms - Ryde and GrabHitch - are also in operation and have garnered much public support.

However, many private motor insurers' clauses exclude any form of reward for hire.

Only one insurer is explicitly clear on policies regarding the participation in carpooling.

Did the authorities work with the insurers when they revised their policies?

What will happen when a third-party claim related to carpooling arises?

There may be a need for insurers to provide revised terms and conditions.

Lok Kok Wah

A version of this article appeared in the print edition of The Straits Times on May 02, 2017, with the headline 'Clarify terms in insurance policies on carpooling'. Print Edition | Subscribe