Go-Jek's Insurance Model

Source: insightasia.com

Allianz Life Indonesia, the local unit of Munich-based multinational financial services company, will provide low cost health insurance for drivers  in motorcycle hailing service Go-Jek and their immediate family members. This is a part of the company’s efforts to deliver health services to low income families. This policy will allow Go-Jek drivers to have insurance coverage during in-patient hospital stays, consultation visits with general practitioners, surgery and other hospitalization benefits. Allianz will also pay for doctor bills, medication and diagnostic tests.

Go-Jek drivers in Jakarta typically make $375 dollars a month, about a third of the capital’s average income per capita. Service registration and payment of premiums of the insurance are done online, making it easier for Go-Jek drivers since they are always mobile. Allianz Life Indonesia is based on digitization, which aligns with the company’s effort to transform its services.

Go-Jek’s Insurance Model, A Blueprint For Other Companies?

Go-Jek’s new insurance policy adds a layer of visibility to the company’s conduct and also establishes a system currently lacking in other crowd sourcing startups.

Despite the fact that companies such as Uber have been quoted saying they create jobs and provide drivers with freedom, most of their drivers are covered by health insurance and do not receive benefits. In Thailand, Uber and GrabTaxi are constantly on the government’s watch as the applications are cited as illegal making it difficult for their drivers to be protected or on the government’s plans. A sharing economy leaves many drivers unprotected and vulnerable to exploitation.

Go-Jek’s implementation of health insurance to its riders raises the issue of insurance in the ecommerce marketplace models. By regulating these practices, the company protects employees’ interests and safety enhancing the drivers’ loyalty and in turn, produce better service for customers. Push for insurance reforms is seen strongly in the US but not yet in Southeast Asia, Go-Jek is taking a proactive step forward.

A version of this appeared in Jakarta Globe on June 18 . Read the full article here.

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