Mark Prefontaine, Alberta’s Superintendent of Insurance, has just made it clear that he has not only listened to brokers concerns about Uber but has now gone on the record backing them.
In a stern warning issued to the province, he announced: “If you’re using Uber, you are at risk. That doesn’t mean in every circumstance a claim will not be paid, but that risk is high,” reports the Edmonton Journal.
While Uber claims to have a $5 million supplementary policy that covers its drivers and passengers in Alberta, Prefontaine reviewed the ride-sharing upstart’s details and has deemed the coverage inadequate.
He is instead encouraging drivers to contact their auto insurance brokers and request a commercial endorsement to their policies, suggesting, “It would allow for an individual to drive on a for-hire basis.”
“This is a priority for my office,” he said.
Such coverage could cost between $6,000 and $10,000 per year, as estimated by one council official. While Prefontaine has committed to working with Uber to develop a solution, he hopes to conduct a full review of Uber’s current insurance structure first.
If necessary, “insurers involved could face administrative or other sanctions.”
Uber launched in Edmonton last December, but was temporarily suspended because of a city injunction. Regulators are expected to pass bylaws clarifying rules for the ride-sharing service this fall.
In the meantime, the tech company insists that its Alberta drivers and passengers are protected by suitable coverage.
"The bottom line is this: every ride on Uber is insured," Uber spokesperson Xavier Van Chau said in a statement. "We look forward to continuing our conversation with governments in Alberta to find long term solutions to enhance public safety and offer more affordable transportation options."
Uber faces a similar insurance battle in Toronto, where taxi and limo drivers have just filed a $410 million seeking damages they feel resulted from unfair competition with the mobile app service.
