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London mayor responds to Uber on insurance feud

London mayor responds to Uber on insurance feud | Insurance Business UK

London mayor responds to Uber on insurance feud
London Mayor Sadiq Khan has responded to Uber’s campaign which is calling for a re-evaluation of the government’s tougher insurance rules for private hire drivers.
In a letter to Uber motorists and passengers, Khan defended the new rules requiring drivers to have commercial insurance policies even if they are using their cars for private purposes.
“The new requirement for hire-and-reward insurance to be in place at all times a private hire vehicle is licensed will help ensure that all vehicles and drivers have the correct insurance, meaning that both the passenger and driver are properly covered should an accident occur,” Khan said.
The London mayor said the new rules, which are already imposed on black cab drivers, received overwhelming support from the public during Transport for London’s (TfL) consultation. However, Khan requested the government body continue studying the matter.
“I have asked TfL to keep the insurance issue under review, taking into account the impact on those drivers who do not work full time,” he said.
Uber has warned that part-time drivers could lose an average of £350 a year due to the new rules on commercial insurance, according to an earlier report by Sky News.
In August, the car service company took legal action to question the insurance regulation and another rule forcing drivers from non-English countries to pass a written language exam.
Uber has also asked its passengers to send a company-prepared email to Khan urging him to reconsider the new requirements for drivers.
“I’m concerned that new rules from Transport for London will threaten the livelihoods of thousands of licensed private hire drivers in our city,” said the letter penned by Uber London general manager Tom Elvidge.
“Making part-time drivers pay for costly commercial insurance in the months when they’re not working is also unnecessary and could force some to give up driving for a living.”
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