Ride Sharing and not risk sharing

Booking seats on trains or buses is likely to be difficult. Engaging a private taxi is expensive. For city travel, there are several taxi aggregators like Ola, Uber and Meru to depend on.  For long-distance travel, there were a few options till one carpooling service which had been making waves in the country the BlaBlaCar stepped in. Ever since that the interest in ride sharing services has been on the upswing in India.

BlaBlacars model is simple. It connects people looking for a city-to-city ride with car owners going in the same direction so that they can travel together and share the cost of their journey. The name is a play on how chatty members are while riding in the cab.

So it is basically hooking up people who are driving with those without a car who are heading in the same direction. This creates a new market, and at the same time eases traffic congestion, and helps the environment. Passengers will also be able to save some money as it is cheaper than renting a car and drivers will get to earn a bit for a trip they were already planning to make. However, its business model is not fool-proof and has a grave risk.

In case of an accident and unfortunate injury or death of your co-passenger will your insurance company honour your claim?  No, because you are carrying a passenger for hire or reward, where the vehicle is on the date of the contract of insurance a vehicle not covered by a permit to ply for hire or reward.

BlaBlaCar claims that “Co-travellers' contributions to car owners do not generate profit, they only offset costs, therefore ridesharing is not ever hire and reward. Rides must only be given in a vehicle seating four passengers or less. BlaBlaCar scrupulously fulfills these conditions, as we limit number of seats and cap price per co-travelers”

BlaBlaCar’s interpretation is based on the clarification issued by The Association of British Insurers, which states as  “All ABI motor insurers have agreed that your insurance cover will not be affected if your passengers contribute towards your journey costs (including fuel, vehicle depreciation and associated vehicle running costs), as long as lifts are given in a vehicle seating eight passengers or less. This does not apply if you make a profit from payments received or if carrying passengers is your business. The ABI is supportive of car sharing platforms such as BlaBlaCar, Liftshare, GoCarShare whose prices and the number of seats offered are usually automatically capped, fulfilling the above requirement regarding profit. The ABI recommend that users of these services look at the terms and conditions associated with the schemes”

BlaBlaCar should be reminded that the British have left India in 1947 and Motor Vehicle Insurance in India is governed by the provisions of The Motor Vehicles Act, 1988 and regulated by IRDA.

A gratuitous or fare paying passenger in a goods vehicle or fare paying passenger in private vehicle has been proved to be a good defense for refusing the claim by Insurance Company and in number of other cases this judgment has been reiterated with a direction that the Insurance Company shall first make payment of the compensation to the claimant and then recover it from the owner.

Private Car Insurance Policy covers Vehicles used for social, domestic and for professional purpose (excluding carriage of goods other than the registered owner ) of the insured or used by insured's employees for such purpose but excluding use for hire or reward, racing, pace making, reliability trial, speed testing and use for any purpose in connection with the Motor Trade

What will happen if your insurance claim is rejected?  With the development of law, liability of the insurance Company has been made strict to the third party even if there is no negligence or defense to the Insurance Company are available. A right has been given to the Insurance Company by way of legal precedents incorporating various provisions to recover the said amount paid to third party from owner. This recovery can be made by mere filing of an execution application and not by a separate civil suit.

Being BlaBla you have the option to reduce your cost of travel, pollution level, find new friends and many endless benefit but at the cost of losing your hard earned saving and peace of mind.

So when you go BlaBla remember that “Once a word has been allowed to escape, it cannot be recalled”