The top regulator in the Canadian insurance industry has now issued a warning to the popular ride share program, Uber, to warn the company, its drivers, and its customers that personal auto insurance will not be adequate for their purposes.
The Insurance Bureau of Canada (IBC) has cautioned that personal auto won’t provide the needed coverage.
The warning from this national insurance industry association has said that if an Uber driver is involved in a collision, or experiences a situation in which a passenger is injured, the average coverage won’t apply. The standard personal auto insurance will not cover liability with regards to a customer, or a crash while the vehicle was being used for commercial purposes. Therefore, the driver is required to carry commercial vehicle policy, instead.
The insurance industry association has issued this warning as Uber works to enter into new cities across Canada.
For instance, Uber has been attempting to step into the market in Calgary and has started recruiting drivers, there. It is already operational in a number of other Canadian cities. This ride share service works by matching interested drivers with passengers who need a lift, by way of a mobile app that can be used on virtually any smartphone.
According to Uber’s Lauren Altmin, in order to become a driver for Uber, an individual must pass a criminal background check, must be licensed, and must provide proof or his or her own insurance coverage on the vehicle to be used.
Altmin added that “In addition to that, every ride on the UberX platform in Canada is backed by $5 million of contingent auto liability insurance, 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.”
Calgary Mayor, Naheed Nenshi also sent a reminder to Uber beyond that of the insurance industry, pointing out that the company and its drivers will be required to adhere to the city’s taxi regulations if it wants to operate there.