Estonia, Financial Services, Insurance, Legislation, Transport

The board chairman of the association, Mart Jesse, said that ridesharing and taxi service are similar by nature.

"Since for taxis the frequency of loss events is three times higher on the average than for other participants in road traffic, their insurance payments are normally higher too," Jesse said, adding that it would be good to set up a database of vehicles used for the provision of ridesharing service.

"It can also reasonably be assumed that the state would launch an information sharing service by which people with justified interest, such as insurance providers, leasing companies and others could obtain information via electronic channels about vehicles that are used to provide the service," Jesse added.

Otherwise, according to Jesse, other participants in road traffic would have to pay for the higher level of risk of the providers of ridesharing service. Taxi companies, which must pay significantly more for insurance, meanwhile would have a considerable disadvantage in competition compared with providers of the ridesharing service.

Rain Porss, representing the insurer If, said car insurance and third party insurance is more expensive for taxis not because they are taxis but because of the amount of time they spend in road traffic compared with regular vehicles that are used to drive to work and back from work, and perhaps also to a kindergarten once every day.

The Riigikogu economic affairs committee decided by consensus on Tuesday to forward a bill dealing with ridesharing to the plenary for the first reading and set the date of the first reading at April 19.