KUALA LUMPUR, Oct. 28 -- The federal government is studying dynamic insurance and takaful models that price coverage based on mileage and driver risk profiles, seeking to rein in escalating vehicle operating costs across the e-hailing industry.

In a written reply yesterday to Bakri MP Tan Hong Pin in the Dewan Rakyat, the Transport Ministry confirmed that a dedicated Inter-Agency Task Force (IATF) convened by Bank Negara Malaysia is spearheading efforts to restructure e-hailing insurance mechanisms and alleviate the financial burden on drivers.

Under the framework being considered, traditional fixed annual premiums could make way for usage-based policies calculated on a per-kilometre basis alongside individual risk ratings.

The ministr...