Ride Hailing and Usage-Based Recovery

Image of a woman holding a cell phoneThe world around us is evolving. We can use our modern phones to order up a car at a moment’s notice, or we can purchase insurance based on vehicle usage. While things certainly are changing, Arbitration Forums, Inc. (AF) still provides services for recovery that fit the modern world.

Selecting the correct forum for recovery can be confusing when considering these new entries into our industry. A good clue to figuring out how to properly file a case is to focus on the position of the filer (Recovering Party [Applicant] or Company 1) to the case.

Here are some examples:
  • Recovering Party (Applicant)’s insured is in an accident with a ride-hailing vehicle and is trying to recover collision damages and rental costs. This still fits within our Auto Forum.
  • Recovering Party (Applicant) pays damages for an accident under a usage-based policy, and seeks recovery from the tortfeasor. This, too, fits in the Auto Forum.
  • The filing carrier paid out of its liability coverage for damage to a third party while its named insured was transporting a ride hailing customer and seeks recovery from the ride- hailing company’s carrier. This falls under the Special Forum.
AF’s rules and agreements are flexible enough to allow for losses encompassing these new and interesting services that have entered the marketplace. With new insurers and self-insured entities arising as a result of the ever-changing world, it is important to remember that AF allows for non-signatory companies to be party to arbitration with written consent. 
 


Article published in: October 2019 E-Bulletin