A fatal weekend crash involving a ridesharing service is raising the question of how insurance works when there is an accident.
Shane Holland of West Sacramento, Calif. became the first person ever to be killed in an accident while using the ridesharing service Lyft – a service that is similar to Uber, which is spreading across major Canadian cities.
The Insurance Bureau of Canada wants brokers to remind their clients that personal car insurance won't cover them if they're in a collision or a passenger is injured – and that means they need to carry commercial insurance coverage.
“Every ride on the UberX platform in Canada is backed by $5 million of contingent auto liability insurance,” Uber’s Lauren Altmin told CBC News, “so drivers and the community at large can rest assured knowing that ride-sharing partners are covered by our insurance policy in addition to any insurance coverage maintained by the driver.”
In British Columbia, Transportation Minister Todd Stone has sent out undercover agents to hand out fines of up to $5,000 to operators of unlicensed, alternative taxi services, in response to UberX's launch in that province.
To be an Uber driver, you must be licenced, pass a criminal background check and carry insurance coverage on the vehicle.
In the case of Holland, he and Brady Lawrence were on their way home Halloween when the crash occurred.
California Highway Patrol are still investigating to see who was at fault; but one thing is clear: both men were riding in a Lyft car. The driver of the Lyft car was 31-year-old Shanti Adhikari of Sacramento, who also gave rides for Uber.
Lyft is an internet service where you can use an app to catch a ride from a private person who drives you where you’re going in their personal car, for a fee. That is similar to Uber, which also matches interested drivers with passengers through a mobile app.
Ironically Holland and Lawrence thought it might be safer than driving themselves, even though taxi drivers lobbying against Uber and Lyft won a victory in Sacramento this summer when regulations over the fledgling industry were tightened.
California State laws passed this summer say the ride-share companies have to provide $1 million of liability insurance for their drivers, even if they are still looking for a customer and don’t have a passenger in their car yet. (continued.)
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In Calgary, Alta., where Uber is looking to expand beyond its current three Canadian locations of Toronto, Ottawa and Montreal, Calgary Mayor Naheed Nenshi says Uber will have to conform with Calgary's taxi industry rules if it intends to operate in that city.
Uber is also currently planning to expand in Vancouver, B.C. where it has been actively searching for managers and drivers through postings on its website and on social media.
However, where Uber is already up and running, there is growing resistance.
Bylaw officers in Ottawa conducted a sting last month and fined two UberX drivers, and according to the Edmonton Journal, the city says more charges are expected.
The City of Toronto issued a statement in October that said UberX violates municipal bylaws and “may pose a serious safety risk.”
Montreal Mayor Denis Coderre has publicly said he believes UberX is illegal.
