Brokers formally warn UberX drivers about insurance

A prominent broker association has issued a warning to remind UberX drivers about insurance coverage gaps.

Risk Management News

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Quebec’s professional broker association, the Regroupement des cabinets de courtage d'assurance du Québec (RCCAQ), has issued a formal notice to “sound the alarm” on the recent partnership between Intact Financial Corporation and Uber.
 
In doing so, RCCAQ hopes to warn UberX users that no product on today's market provides adequate coverage for the ride-sharing service's drivers. In addition, since Uber operates in a “legislative vacuum,” the RCCAQ points out that substantial challenges may still lie ahead.
 
"Uber features a commercial car sharing service provided by drivers who don't have taxi licences and who aren't commercially registered,” RCCAQ chair Vincent Gaudreau said in a statement. “The government has yet to take an official stance. Given the confusion surrounding this issue, there is an urgent need for a carefully designed regulatory framework. All of this begs the question: how can something be insured if it's not legal?"
 
Moreover, the organization cautions  Quebec’s insurance laws, although it can’t know for certain until details on the product are revealed.
 
"Paid transportation services are not covered by the basic insurance contract, which is known in Quebec as Form FPQ 1,” Gaudreau added. “That means that in the event of an accident, UberX drivers would not be covered by their personal insurance. Even worse, they run the risk of having their insurance policy invalidated due to omissions or false statements."
 
In the meantime, Gaudreau continues to recommend that members of the public contact their brokers if they are interested in driving for the Uber platform.

"Keep in mind that brokers are always there to assist you. They will ensure that you receive the advice you need to make the right choices. Please don't hesitate to consult them," he said.

Correction: A previous version of this article incorrectly suggested that RCCAQ questions the benefits of an Uber-Intact arrangement in the long-term. Instead, the organization merely hopes to draw attention to the fact that there is not yet a product available to protect UberX drivers. Insurance Business regrets the error.

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