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News Ban on ride-sharing services lifted in April

thomas

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By the end of the present fiscal year, the government will establish a new system to allow individuals with private cars to transport passengers for a fee under the operational control of a taxi company in places that lack taxi services and during periods when taxi numbers are insufficient. Taxi companies are finding it challenging to source drivers due to a labour shortage, among other reasons. Under the new system, individuals with a standard driver's license can work for taxi firms.



Japan's taxi drivers are rapidly decreasing in number. According to government data, there were about 290,000 such workers in 2019. As of March, however, this figure had fallen to about 230,000. The decline is partly due to many taxi drivers retiring during the COVID-19 pandemic when the demand for taxi services dropped.


 
I wonder how vehicle/liability/injury insurance works with all this? I doubt my personal auto insurance company would be okay with me driving for hire, and I'd fully expect them to decline/deny coverage if an accident happened while engaged in that.
 
According to the article, they'd operate "under the operational control of a taxi company." I assume that the taxi companies' business insurance will also cover those private drivers.
 
I wonder how vehicle/liability/injury insurance works with all this? I doubt my personal auto insurance company would be okay with me driving for hire, and I'd fully expect them to decline/deny coverage if an accident happened while engaged in that.
I know this isn't in Japan but when I modified my car insurance I was specifically asked if I used the vehicle or drove for a ride sharing company. My guess is that either the Taxi company's insurance will cover them or that they will need to have a rider added to their current policy in order to do it.
 
Probably that kind of rider is not available in Japan.
 
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