Insurance requirements for Uber still not enforced in Toronto

Despite a new bylaw, Uber technically still doesn’t have to comply with new insurance regulations, complains taxi industry

Motor & Fleet

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Despite a new Toronto bylaw put into place for Uber drivers on July 15, the ride-share company isn’t yet legally required to adhere to its newly-minted insurance restrictions – because the city has yet to issue the TCN a license.

The new legislature states Uber drivers adhere to minimum $2-million commercial liability insurance coverage, vehicle standards and condition requirements. The City of Toronto says it hopes Uber will receive its licence by the end of August.

“It has been two weeks since the bylaw has been in place and Uber continues to flaunt the law just as they have done in the past,” Toronto Taxi Alliance spokesperson Sam Moini stated to CP24. “They should have their license in place, they should have their drivers insured and they should be having their vehicles inspected today.”

However, the city says Uber has provided proof that an insurance policy is in place for drivers, once it’s officially up and running. Blanket coverage for Uber’s fleet was introduced in Ontario by Intact in early July. The new coverage has been embraced by critics of the ride-share company’s insurance gaps – but poses questions as to how auto brokers fit into the landscape.

“I think it’s awesome that’s it’s coming; it lets commerce and business flow freely in insurance,” said Adam Mitchell, president at Mitchell & Whale Insurance in an interview with Insurance Business, adding that the data it gathers may be beneficial to pricing future policies.

“Part of it is really clean because you can price it incredibly accurately, with how much the car is being used, whereas the old model was on, let’s see how much you drive and we’ll bill you based on that, they can reconcile it. If they have the data, that part is awesome,” he said.

However, he adds, removing the element of choice poses questions for drivers’ ride share free market options.

“I’m a choice advocate – I think that’s a cool way to have choice, so long as the drivers can choose to upload their proof of coverage, another way,” he said. “I don’t know if it’s an absolute win for choice if there is no other way. What options do they have to control their coverage?"


Related stories:
Will Uber blanket coverage edge out brokers?
Uber drivers in Ontario now insured automatically
 

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