Recent reports indicate that Uber drivers in Ontario are now insured from the moment they turn on the app to the moment they turn it off.
Insurance has been one of the greatest obstacles to securing ride sharing services in Canada. Upon the recent legalization of Uber and other ride sharing services in Toronto, it was required that Uber obtain and sustain $2 million in insurance at all times.
Since then, insurance companies have stepped up to the plate with their own coverage plans for ride sharing drivers and passengers that have been widely discussed over the past few months.
To compound this effort, the Ontario Insurance regulator has approved a policy from Intact for private vehicles transporting passengers through a ride-hailing service.
According to the Financial Services Commission of Ontario, this “blanket fleet coverage” addresses a “critical insurance gap” in the industry.
This new policy covers all Uber drivers, passengers and auto owners when the app is in use. When the app is turned off, the vehicle owner’s personal auto insurance coverage applies.
“Going forward, I want to emphasize that the sharing economy in general, and the automobile insurance implications in particular, will continue to evolve and will require innovative solutions and responses by all stakeholders, including FSCO, that respond to technological advances,” said Brian Mills, CEO of the FSCO in a statement.
At the end of June, Intact and the province of Alberta entered into a similar arrangement to insure ride sharing. In a statement sent to MobileSyrup, it was specifically stated that users of ride sharing services (passengers or drivers) will receive coverage while in the process of using a ride sharing services.
The description goes on to describe how drivers will be covered “from the instant a ride is accepted until the passengers have exited the vehicle.” Riders must call their agent or insurance broker before participating to purchase this line of coverage.
In addition, Aviva Canada has also taken steps towards effectively insuring Uber drivers and passengers in Ontario, Quebec and as of August 1st, Alberta.
The Ontario government recently approved a regulatory change under the Insurance Act that allows insurance companies to develop fleet insurance policies for ride-hailing companies.
Mills goes on to say that he anticipates new policies building on what has been approved for Intact will be filed in the future.
This article was originally published on MobileSyrup