The Wall Street Journal reported that Sure has created a product that gives passengers of ride-hailing apps accident and death coverage on a per-day basis. The insurance can be purchased on demand via a mobile app and will protect the passenger from any injuries he or she received while in the vehicle. According to The Wall Street Journal, the move is part of a race in the insurance industry to churn out new products that meet the needs of the changing vehicle marketplace. With ride-hailing services booming and self-driving cars coming, the insurers are figuring out how to respond. After all, one of the biggest products for the industry is offering up automobile insurance.
Under the partnership, Chubb will underwrite the insurance policies for Sure. Passengers who purchase the insurance, which costs $2.40 for 24 hours, will get up to $10,000 to cover medical bill per each accident and also has a $100,000 death benefit. The insurance is being marketed under the name RideSafe. Passengers who ride with Uber in the U.S. are usually covered by liability insurance that it provides. The Wall Street Journal noted the coverage is a total of $1 million per accident and covers medical expenses and loss of income. It covers passengers even if an uninsured driver caused the accident. “Since 2013, Uber has made insurance available at no added cost to riders,” Gus Fuldner, an Uber executive, said in an email to the WSJ. “Our built-in $1 million liability and uninsured/underinsured motorist coverage provides peace of mind and protection from unforeseen events.”
Sure’s chief executive and founder Wayne Slavin said that even with Uber offering insurance, it is filling any gaps. The coverage can also be used to cover the deductibles on health insurance, noted Slavin. “There are many people, carriers and insurtech startups thinking of the implications of the ride-hailing world, the potential for gaps in insurance coverage and the opportunity to offer innovative new products,” said Michael Halsband, a partner at law firm Drinker Biddle & Reath, in the report.