Monday, 9 April 2018

Uber Offering E-Bikes? Provide Insurance Coverage to Protect Your Riders!


I just read an article indicating that Uber has purchased a small e- bike-sharing startup.

In Toronto, we already have Bike Share Toronto, which has been around for many years. The difference with the Uber purchase is that it will be that much easier/faster for their patrons to get around Toronto, with the assistance of an electric bicycle. As our 2009 blog entry argues, who realistically can bicycle and maintain a speed at approximately 32 km/hour (which is the maximum speed limit allowed for an e- bike)? Yet, this same person who is unable to ride a bicycle quickly can travel 32 km/hour using an e-bike - will their reflexes and skill in riding a bicycle keep up with this excessive speed?

That is, it is so convenient to travel long quickly without having to use any effort, but given that there are no licensing requirements, are these people truly able to handle any e- bike traveling at such speeds? And when they get into an accident, without insurance, then what?

E-bikes are still in someone of a grey zone, legally, in that insurance is not mandatory in order for a rider to use an e-bike. As indicated in our 2009 blog entry, our view is that this is a significant problem regarding insurance risk, which the user may not appreciate, for both the e-bike user as well as anyone that they hit while riding an e-bike.

Now, it appears that some homeowners insurer's offer some form of coverage, within the homeowners policy, for e-bikes. It may also be possible to purchase e-bike insurance specifically. While we do not know the specifics, it does not appear that this e-bike insurance is as comprehensive as you would receive if you obtained a moped insurance - i.e. there does not appear that Accident Benefits insurance, attached to the e-bike insurance coverage, is available.

Let's hope that Uber, if there looking to make money in Ontario by offering these e-bikes, is forced to offer coverage which is equivalent to the type of coverage that moped users would have.

Foreseeable Problem: whoever is renting these e-bikes, my assumption is that they would not be covered under their own personal home insurance policies for the use of these rental bikes. That is, they would be writing without any insurance, at all, unless it Uber offers coverage for their bicycles while you use them.

Uber (for vehicles), of course, loudly advertises that they offer $2 million worth of insurance coverage yet, at least in the early years, Uber left the issue of insurance coverage for the vehicle itself to their individual drivers.

Given how Uber has barged onto the market, circumventing traditional taxi regulations, let's hope that if they plan on introducing large-scale introduction of e-bikes to Ontario - which we really would be a culture change and an increase of risk for drivers and pedestrians alike - that they are forced to provide insurance coverage which is akin to the insurance coverage that moped drivers would be required to obtain (i.e. standard coverage under an automobile policy).

Like anyone else, I love the convenience that a service like Uber promises.  If they are to flood the market with e- bikes, however, then they should be held to a higher standard in terms of providing insurance coverage for those involved using their bicycles.


Toronto Insurance and Personal Injury Lawyer
Insurance Law Geek




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