One of the companies behind Canberra's electric scooters is to offer extra insurance to protect riders financially if they injure a pedestrian.
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Neuron Mobility said it would offer cover to bring "the level of protection associated with Neuron's service similar to more traditional transport modes".
Lawyers had warned that crashing an electric scooter could open the rider to legal consequences if the injured person sued.
According to Richard Faulks, managing director of the Canberra firm of lawyers, SHG, "if the rider of the scooter was negligent, that is failed to take proper care, it may give rise to a personal injury claim from the injured pedestrian against the rider".
The situation is similar to cycling: if a cyclist hits a pedestrian and causes injury, he or she could be liable to pay compensation.
But part of the problem is that the scooters are a new development and it's not clear how the law views them. Are they motor vehicles (where third party insurance is compulsory) or are they legally similar to a mobility device as used by disabled people? Are they similar legally to a skateboard or to a segway?
The law firm Hillhouse Legal Partners says that some home insurance policies may cover cycling accidents - but probably not e-scooter ones: "While these policies might extend to the riding of bicycles, they don't necessarily extend to the riding of electric scooters."
There may be a gap between what home insurance covers and motor insurance, according to Michael Morris from the firm.
The law company advises that the devil is in the detail of every insurance policy. It cites one as an example: "Allianz's policy provides the following in respect of coverage for legal liability: 'We will cover your legal liability for payment of compensation relating to death, bodily injury or illness, and/or physical loss of or damage to property."
But then adds the kicker that this particular policy excludes any "mechanically propelled vehicle, except garden equipment, golf buggy or wheelchair which do not need to be registered or do not require statutory bodily injury cover to be taken out".
Neuron Mobility's publicity company said nobody from the company was available to talk about the insurance scheme.
It issued a statement on the company's behalf: "Neuron has partnered with a leading insurance provider, Agile Underwriting Services Pty Ltd, to bring third party cover to all Neuron's e-scooter riders in Australia and New Zealand. This goes beyond Neuron's significant public liability and personal accident insurance.
"Riders do not need to opt in, they are automatically covered when they take a trip, and the cost is absorbed in the pay-as-you-ride or Neuron subscription passes prices.
"In case of an incident riders should complete a claim form available in the Neuron App and on the website and submit it directly to Agile Underwriting Services."
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