UberX drivers in South Carolina covered by state-approved insurance policy

Oct. 27--Uber may have overcome one of the main concerns about its business operations in South Carolina.

The S.C. Department of Insurance has found that Rasier LLC, a division of Uber that runs the UberX app, has demonstrated that it provides adequate insurance to drivers who use UberX and their personal vehicles to transport paying passengers.

The company applied last month for a certificate to operate as a motor passenger service in the state, which is still pending approval from the S.C. Public Service Commission.

The Office of Regulatory Staff, the state agency that makes recommendations to the commission on behalf of the public, asked for extra time to study the "unfamiliar insurance coverage," according to state filings.

After reviewing Rasier's commercial auto insurance policies, the Department of Insurance notified the PSC last week that the policies appear to satisfy all of the state's requirements.

Rasier has two policies with James River Insurance Co. to cover UberX drivers in three different phases of service: scanning the app for fares, driving to pick up passengers, and transporting passengers to a destination.

In the first phase, when the driver is "online" and available to pick up passengers, Rasier's policy provides liability coverage of $50,000 per person, $100,000 per accident, and $25,000 for property damage per accident if and when the drivers' personal insurance carrier denies coverage.

Raymond Farmer, director of the Department of Insurance, said drivers most probably would be denied coverage by their insurers because state law says personal policies can't cover vehicles used for commercial purposes.

From the time the driver has accepted a trip to the point when passengers are dropped off, a $1 million liability policy is the primary coverage for any wrecks or other incidents that UberX drivers are involved in.

Farmer said Rasier's two policies don't appear to have any gaps in coverage while drivers are using UberX.

Dukes Scott, executive director of the Office of Regulatory Staff, said his agency hasn't taken a position on whether UberX should be licensed as a motor passenger service. His agency will work with the PSC next week to schedule a public hearing, he said.

In its application, Rasier also asks the PSC to bend or waive certain rules to accommodate its business practices. For example, since rides are scheduled on an app, the company doesn't want to put its name and commission identification numbers on the side of the drivers' personal vehicles.

Since UberX launched in cities across South Carolina</location> this summer, several taxicab companies have complained to officials that the service raises public safety concerns in part because it lacks appropriate insurance.

Going Coastal LLC, a North Charleston-based taxi service, has requested to intervene in the state's hearing to testify against the company. Among several concerns listed in the written request, the company said it believes the insurance coverage "has serious" deficiencies.

Uber officials did not respond to requests for comment.

Reach Abigail Darlington at 937-5906 and follow her on Twitter @A_Big_Gail

___

(c)2014 The Post and Courier (Charleston, S.C.)

Visit The Post and Courier (Charleston, S.C.) at www.postandcourier.com

Distributed by MCT Information Services