TfL proposals tackle ‘unfair’ insurance gap between London pedicabs and taxis

Transport for London (TfL) has proposed compulsory insurance as part of its licensing requirements for pedicab drivers in London. 

Pedicabs in London are currently unregulated, with the transport authority’s new proposals aimed at ensuring that they are driven, maintained and operated in a safe and professional manner.

As part of these rules, all pedicab drivers would be required to hold a valid public liability insurance policy to the value of £5m – or an equivalent insurance – and the certificate of insurance would need to be available for inspection by TfL at any time.

Vehicles would also need to be insured to carry passengers for hire or reward, alongside other requirements such as passing vehicle inspections, criminal record checks, driver assessments and completing regular servicing. 

Proposed rules would also ban loud music being played from the vehicles and regulate fairs to end common overcharging practices.

In a TfL consultation that took place between January and March 2025, 97% of respondents felt that pedicabs should have appropriate insurance in place to carry passengers.

Marc Loud, director at rickshaw and pedicab specialist Park Insurance, told Insurance Times that adapting to this change would not be an issue for the sector, with the firm having the facilities to write up to £10m.

Speaking on the potential impact of the new regulation, Loud added: “It’s a good thing [because] they’re on the road. It’s no different than a taxi and they should be covered like any taxi driver.

“It’s unfair that someone can go and get a pedicab and yet a taxi driver that has got a lot of insurance is paying several thousand pounds. They are taking quite a bit of business away from the London taxi drivers.”

Navigating changes 

The new regulation is planned to come into force in early 2026 after a six-week consultation period with Londoners, businesses and pedicab drivers on TfL’s specific proposals for licensing regulations.

In preparation for the upcoming changes, a spokesperson at the London Pedicab Welfare Association (LPWA) said that that it has lodged a request with TfL to arrange the insurance, as the non-profit organisation cannot find any suitable policies.

Helen Chapman, director of licensing and regulation at TfL, said: “We’ve listened carefully to the thousands of responses we received earlier this year and we’re now setting out detailed proposals for how pedicabs should operate and be regulated in London.

“We’re committed to working with the pedicab industry and the public to ensure that regulation is proportionate, enforceable and deliver real improvements for everyone.”