A union wants private hire drivers in London to be able to choose their own private hire taxi insurance, instead of having to pick from a shortlist provided by Uber.
GMB Union representatives and officials from the ride-hailing company met before Christmas for one of their regular quarterly meetings when the issue – which was highlighted by the Financial Times the previous day – was raised.
Approved panel
The newspaper reported that Uber’s restrictions – which make drivers take out cover with one of eight taxi insurance providers – meant that many drivers were forced to pay higher premiums.
One driver told the Financial Times that they had been locked out of their Uber account after taking out private hire insurance with an insurer that was not on Uber’s approved panel.
And another said they had seen their premiums treble over two years – a claim apparently supported by an industry price comparison website which found that “more than 70 per cent of drivers may have paid more in insurance as a result of Uber’s restrictions in the past two years”.
The newspaper reports that some industry experts have questioned whether Uber’s insurance panel approach goes against anti-competition regulations. The Financial Times report claims experts say the panel “features about half of the insurers offering cover for UK private hire vehicles” and “is stopping the normal operation of the market”.
Following the meeting, the GMB said: “GMB has previously raised the issue of insurance where drivers are restricted to only eight TfL-approved insurance providers, causing premiums to rise. Walsingham, previously one of the cheapest options, is no longer accepting private hire drivers.
“This limited choice appears to be creating an anti-competitive situation where providers may be working together to keep prices high.”
Checks
Uber has explained that its approved insurance panel means it has instant access to drivers’ records and can prevent someone without the proper insurance from picking up passengers.
Uber told the Financial Times that the insurers on the panel were selected in 2021 and accounted for “over 90 per cent of policies sold in the private hire vehicle market in London at that time”.
It added that the panel was introduced following reports of uninsured drivers picking up passengers and it enabled the company to instantly verify drivers’ private hire insurance policies.
It added that the system has identified 174 instances of issues with insurance policies which “would not have been identified otherwise”.
The company told the Financial Times: “One of our priorities has been to enhance our document-verification processes for drivers to help us deliver on our commitments to Transport for London”.
“Uber does not receive a commission and the suppliers do not pay to be on the panel.”.
It added that it planned to “provide drivers with even more options” for insurance early this year.
Operators need to ensure that the drivers who work for them are fully qualified, licenced and insured. Their choice of insurer should come down to whoever provides the right policy for the best price.
Hopefully talks between the union and Uber will continue so that drivers feel they have enough choice to take out private hire policies that they can afford and meet their needs, rather than having their options limited.