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A mandatory insurance for taxi services by Apps in Peru?

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By Pedro Richter


Published 28 June 2021


The taxi service by applications has had an important expansion in Peru, mainly due to the high informality of the regular taxi service However, this expansion is not exempt from problems of a legal nature, therefore recently, Congress intends to regulate this activity (Bill 06600/2020-CR) by creating a mandatory insurance to the taxi service by application (SOTA).

Unfortunately, the technical bases of such insurance have not been justified, being that even it would present in an almost identical way the same coverages of the Compulsory Insurance of Traffic Accidents, which are limited to the risks of death and disability of the driver, occupant and third parties.

This situation has generated reactions from taxi drivers since they consider that they would be forced to take out insurance for a situation that they already have covered; for his part, the representative of the insurance sector, considers that the most reasonable thing would be that the obligation of contracting corresponds to the providers of the apps, since they could carry out a better risk management, improving for example the standards of selection of taxi drivers.  The truth is that this debate is still open and must be carefully developed, since a bad legislative choice could slow down the progress of this business model or an increase in the price of the service, which would end up affecting the end user.