Grab’s insurance arm and NTUC Income jointly unveiled its first micro-insurance plan designed to help drivers better protect themselves against critical illnesses.
GrabInsure has launched a flexible pay-per-trip micro premium and accumulative coverage proposition together with local insurer NTUC Income on Thursday. Known as Critical Illness: Pay Per Trip (CIPPT), the microinsurance plan can be subscribed via Grab's driver-partner app and allows premiums to be deducted from their in-app cash wallet.
«We know many of them (the driver-partners) worry about falling ill, and the corresponding medical costs. They see the value of insurance protection but are hindered by a lack of affordable options that give them the flexibility in premium payment and coverage. Some of them are also discouraged by the application processes of insurance plans,» said Yee Wee Tang, Country Head of Grab Singapore in a media statement.
Flexible Cash Flows
CIPPT is a critical illness insurance plan that provides Grab driver-partners the option to pay for premiums on a per-trip basis. Unlike typical insurance plans that call for a commitment to a fixed premium amount over a set period, CIPPT offers greater flexibility on cash flows to maintain the plan.
For as low as S$0.10 per trip completed, Grab driver-partners can accumulate insurance coverage of a Sum Assured of up to S$200,000 for 360 days, in the event that the insured is diagnosed with a critical illness covered under the plan. There is no minimum trip requirement per day and they can work anytime.
«This micro-insurance proposition for critical illness protection is ground-breaking in the way in which it is purchased and where protection is rendered. The option to stack insurance coverage by paying premiums at micro-quantum is an innovative way to offer Grab driver-partners critical illness protection without incurring a substantial outlay from their monthly income. This approach resonates with people who prefer to have flexible cash flows to see to other financial commitments but yet at the same time, want to benefit from insurance protection,» said Peter Tay, NTUC Income’s Chief Digital Officer, who heads the company’s Digital Transformation Office.
Digital Insurance Product
CIPPT is also the latest digital insurance product offered by GrabInsure, after the launch of Personal Accident Plus (PA+) and Prolonged Medical Leave Plus (PML+) insurance plans in April 2019.
According to the Life Insurance Association Singapore’s Protection Gap Study, only 20 percent of economically active individuals in Singapore are covered for their critical Illnesses.
