City Council subpoenas insurance records from ride-share firms
By Jon Hilkevitch, Chicago Tribune | |
McClatchy-Tribune Information Services |
The subpoenas were sent to Uber X, Lyft and Sidecar this month by the city clerk on behalf of the
Insurance experts and taxicab companies have sounded alarms that ride-share customers aren't protected by ride-share drivers or companies for any medical or other expenses resulting from an accident involving a ride-share vehicle.
The ride-share companies are currently not required to submit their insurance policies to the city or the state, and they have not done so voluntarily, officials with the city and the
The companies also do not post their insurance policies on their websites.
"These companies are being rogue in terms of providing transparency and sunshine," State Sen.
Representatives of Uber X, Lyft and Sidecar declined to testify before the Transportation Committee, Sandoval said.
The committee decided to ask the full
All three ride-share businesses insist ride-share drivers and customers would be covered by the driver's personal auto insurance and by "excess" policies purchased by the companies if an accident occurred.
Insurance experts who appeared before the Transportation Committee disagreed.
"There is just no coverage under the personal liability policies," said
Asked by the committee whether any insurance would kick in, Francis said: "We don't know what their policy says."
The city council voted to send the subpoenas to Uber X, Lyft and Sidecar at the request of Aldermen
Uber X, Lyft and Sidecar officials declined to testify at the city council hearing as well.
The Emanuel administration, which has allowed ride-share companies to operate in
The taxicab industry, which is tightly regulated, opposes the proposed ordinance, saying it does not go far enough.
Ride-sharing involves drivers with regular driver's licenses using their personal vehicles to transport customers for a fee. The drivers contract for dispatch services with the ride-share companies, which operate using smartphone apps to arrange rides for customers and collect fares via credit cards.
Widespread evidence exists, based on the fine print contained in all major personal auto insurance policies as well as opinions provided by state insurance regulators and insurance companies, that no coverage applies to ride-share drivers unless they carry commercial insurance, which is required of taxicab drivers.
Few, if any, ride-share drivers carry commercial insurance, which is costlier than personal auto insurance.
In addition, the
Insurance experts testifying before the
"There is literally no insurance to cover this type of activity,"
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