Motor policy exclusion where the vehicle is carrying fare paying passengers
Following on from yesterday’s post, I was waiting at an airport for a lift on Monday when I returned from New Zealand and I was approached by a driver who was between fares he said for a private hire car company.
I know that there has also been a lot of press and advertisements around Uber and other companies like them recruiting drivers for their alternate hire car/taxi services.
It is timely to remind our customers that to carry fare paying passengers requires a specific licence whether it be a bus or car and that most motor vehicle policies specifically exclude the vehicle and third party property damage where the vehicle is used to convey fare paying passengers.
The same could catch out the owner of a bike who offers rides for reward say at tourist destinations such as the Gold Coast, Uluru or anywhere else.
Yet another trap is another relatively new idea of renting your car out to others while you are not using it. This too may well fall foul of a policy exclusion which means neither the car is insured or equally if not worse that their is no third party cover.
Before entering into any business venture it is wise to discuss the risk exposures and the effect it may have on your existing insurance and what additional insurance coverage may be prudent to have.