When Uber first launched in Australia, there was an uproar from taxi drivers. They claimed that Uber had come in to take their rightful share of the market without even putting in an effort. The taxi drivers claimed that the ride share company was offering ridiculously low rates and was not offering the appropriate insurance cover. They said that their insurance policy was not based under Australian laws. They claimed that Uber was not safe for passengers, something that Uber came out to refute.
All Uber passengers are covered under their insurance policy in case of injuries during their Uber trips. Apart from having their own insurance policy, Uber also require their drivers to have their own insurance. According to an Uber representative, any ride that is booked through their app within Australia is covered. The CGU issues an insurance of up to $20,000,000 for third party passengers and property using the UberX services.
States around Australia embraced the sharing economy, knowing that it will bring about economic opportunities. Uber and other ride sharing companies have opened up the markets and brought about business opportunities. The competition is now very high, which is healthy for the economy. As a result service offerings will definitely become more innovative and personalized. The reforms made by the states are good news to people that need the transport services.
Back to insurance, companies across Australia have made a dash to expand their cover to encompass ride sharing. They provide comprehensive, third party property and third party fire and theft for private car customers. The owners of ridesharing vehicles are eligible for the covers and all that they have to do is to confirm their participation with Uber. According to the Market Manager of one of the companies, covering of ridesharing vehicles was just a way of adding value to their already existing and future customers. They want the vehicle owners to feel secure in every way. This is whether they are operating in their own private time, or ridesharing. For the full benefits that are offered by each of the insurance companies, you would have to pay them a visit or visit their websites.
One of the most attractive things about these insurance companies is that most of them offer cover for ridesharing vehicles at no extra cost. I guess this is because Uber already has contingent insurance coverage for its driver partners. It is of utmost importance for drivers to compare and understand what the insurance companies have to offer and what Uber has to offer in order for them to understand what they’re covered for. What if there are drivers that do not share with the insurance companies their Uber activities and get into accidents during a trip? According to one of the insurance companies, when making a claim, the driver will be treated equally just like the insurance company would treat any other case.