Driver service committee to promote new insurance plan
Print Edition
THE Shanghai Road Transportation Industry Association is promoting a new insurance product for driver service companies, which offers an indemnity of up to 400,000 yuan (US$63,800) for each business.
The Shanghai Driver Service Committee will encourage its 63 member companies to buy the product.
Jointly introduced by Shanghai Ping An Insurance and the committee, which is affiliated to the Shanghai Road Transportation Industry Association, the product has been approved by the Shanghai Insurance Regulatory Bureau.
According to Feng Yuanming, head of the service committee, the product will pay up to 400,000 yuan to cover injuries to passengers and drivers, damage to vehicles, and alternative transport.
“When an accident happens, the company usually has to shoulder the bulk of the expenses,” Feng said.
“Some small companies can easily go bankrupt,” he said.
Earlier this week, the Pudong People’s Court upheld a man’s appeal against a Beijiing-based company whose application provided driver services.
On March 9, 2013, a car owner surnamed Pan placed an order seeking a driver through an app E-Daijia after consuming alcohol. The hired driver crashed into the cyclist who spent the next 16 days in hospital.
The court said the company that provided the service was responsible for accidents caused by its driver.
The court told the insurance company to pay the victim 126,600 yuan while E-Daijia was asked to pay 3,700 yuan.
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