Ridesharing and Insurance Coverage
With the meteoric rise in Australia of the popular ridesharing app Uber, important questions about coverage for personal injuries under Compulsory Third Party (CTP) insurance policies are being asked.
Ridesharing involves car-owners picking up passengers and transporting them for a fee in their own vehicles. Uber provides the mobile app platform for connecting passengers with drivers.
The Insurance Council of Australia has warned of the possibility that Uber drivers may not hold the appropriate level of insurance coverage when using their vehicles for commercial purposes.
Uber has responded by claiming that it provides an additional cover-all policy if personal policies are insufficient, however the details of the policy have not been made public. In addition, any claim under Uber’s policy requires a claim to be first rejected under the personal insurance policy before it will respond.
What this means is that while passengers of rideshare services, or other road users, are covered by the CTP insurance scheme in the event of injury, there may be a confusing claims process and lengthy delays for injured persons. Further, rideshare vehicle owners could potentially find themselves facing recovery action for underpaid premiums in relation to CTP insurance.
If you or any member of your family or a close friend is involved in a car accident it is important to be fully aware of your rights and what compensation for personal injury you may be able to claim.
At GC Law we are personal injury experts and can help you assess your potential claim, for more information call us to speak to one of our lawyers on 1 300 302 318.