Uber Raising Rates To Cover The Insurance For Drivers
Recently reported, Uber will now increase its rates by 5 cents per mile in Eight US states. Uber has launched Injury protection insurance program for its drivers, in order to cover this cost Uber has to increase the prices. The ride hailing company said that this program will provide drivers with cheaper options of injury cover and income security insurance.
According to PennLive, Uber’s head of safety and insurance Gus Fuldner told, “We believe that lost cost injury protection will help drivers to protect them from the circumstances they might face if they receive injuries and unable to work for a while, this cover will pay for their injuries as well as subsequent income if they are injured in any case.”
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Uber the largest ride-hailing services in the world with operations in more than 450 cities in more than 70 countries. Uber has faced so many legal, social and ethical issues in the past, the company is now focusing more on all legal, ethical and social grounds to make it better global company.
The company’s new offer is now attractive to most drivers, as they feel the sense of being hired by the company which protects their basic rights. This is pretty appreciable gesture from the company which shows serious concerns about protection of their drivers.
This insurance program will cover medical expenses and loss of income from an on-the-job accident up to $1 million. Drivers in the program won’t have to pay a cent from their income, according to PennLive. The injury protection insurance only covers drivers when they’re working for Uber and not when they are off job.
Uber is not generating any revenues for profit in this program, this program is exclusively protecting drivers and their families who are dependent on their workers.
However, Uber initiated similar program for drivers in the UK last month. In that, program, all the drivers who have completed at least 500 rides can avail the option of illness and injury insurance for £2 equivalent to $2.60 per week, which is not even a fraction of cost for drivers. Drivers can easily pay this amount to get protected.
Criticizing someone’s act is so easy, there is a psychological effect if you do not like someone or have prejudice about them, you will see their positives as negatives, same thing is happening with many of the critiques. Rebecca Smith, deputy director of the National Employment Law Project, said it seems Uber is just attempting to look good.
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“Though consumers are assured that they are paying for workers’ insurance, that will only be true for the drivers who opt in,” Smith said. “If Uber valued its workers, it would simply pay its workers’ compensation premiums and cover all of them.”
However, Uber didn’t respond to request for comment.
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