E-hailing vehicles require appropriate business insurance to ensure proper protection for drivers, passengers, and vehicle owners. This guide explains why standard personal insurance may not be sufficient, the risks of uninsured commercial use, and the key benefits of having the correct cover for platforms like Uber, Bolt, and inDrive.
Having the correct insurance for an e-hailing vehicle is essential for protecting the vehicle owner, driver, passengers and the business.
Standard personal motor insurance may not cover a vehicle that is being used commercially to transport paying passengers. If your vehicle operates on platforms such as Uber, Bolt, inDrive or another e-hailing service, your insurer should be informed that the vehicle is being used for e-hailing and business purposes.
Personal motor insurance is generally designed for private vehicle use.
E-hailing is considered commercial or business use because the vehicle is being used to generate income by transporting passengers.
If an accident occurs while the vehicle is being used for e-hailing and the insurer was not informed of its commercial use, an insurance claim may be rejected or affected depending on the terms of the policy.
Vehicle owners should therefore:
E-hailing vehicles carry members of the public every day, which creates additional responsibilities and risks.
Depending on the insurance policy, appropriate business insurance may provide protection relating to:
The exact level of protection will depend on the insurer and the policy selected.
For an e-hailing operator, the vehicle is not only a means of transport it is also an income-generating business asset.
If the vehicle is damaged, stolen or hijacked, the owner and driver may lose income while the vehicle is unavailable.
Depending on the policy, business insurance may provide cover for:
Vehicle owners should confirm these benefits directly with their insurer, as they are not automatically included in every policy.
E-hailing vehicles normally travel considerably more kilometres than privately used vehicles and may operate for many hours every day.
This increased road exposure can increase the possibility of:
Having insurance specifically designed or approved for e-hailing use helps ensure that the policy matches the actual way the vehicle is being operated.
In South Africa, certain risks relating to riots, strikes, public disorder and similar events may be covered through SASRIA where applicable.
Vehicle owners should confirm whether SASRIA cover is included with their insurance policy and understand the applicable terms and conditions.
Do not assume that normal personal vehicle insurance automatically covers e-hailing activities.
Before placing a vehicle on Uber, Bolt, inDrive or another e-hailing platform, ensure that your insurance provider confirms that the vehicle is properly insured for e-hailing, commercial or business use.
Having the correct insurance can significantly reduce the financial risk faced by the vehicle owner, driver and business when an accident, theft, hijacking or other insured incident occurs.
TM Transportation encourages all vehicle owners working within the e-hailing industry to maintain appropriate insurance cover and keep their vehicles roadworthy and properly documented.
For assistance with vehicle management, driver management and e-hailing vehicle onboarding, contact:
TM Transportation Services 50 Constantia Boulevard Quadrum Office Park, Ground Floor, Building No. 4 Regus Constantia Kloof Johannesburg, South Africa, 1709
Tel: +27 10 141 1238 0737771527
Disclaimer: This information is provided for general guidance only and does not constitute insurance or legal advice. Insurance benefits, exclusions and requirements differ between insurers and policies. Vehicle owners should obtain written confirmation from their insurer regarding the specific cover applicable to their vehicle.
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