Insurance provider working with Uber on ridesharing solutions
Published Tuesday, September 8, 2015 10:51AM MDT
One of Canada's largest auto insurance providers says it's working with ridesharing service Uber to provide custom insurance solutions for the company.
Very few details of the products they'll offer Uber have been released by Intact.
Uber's ridesharing service offers an alternative to conventional taxi services, causing controversy and sometimes friction in communities where it operates.
Uber has said that its insurance policies are adequate, but reaction from municipalities around the world has been mixed, especially in Canada.
In July, the Insurance Bureau of Canada said drivers who work for Uber should verify their vehicles are insured for commercial use. It said some policies provide coverage for only personal automobile use and insurers could reject a claim if the vehicle is used to generate income.
The industry group, which counts Intact as a member, issued that recommendation after the Alberta government concluded that Uber's insurance policies didn't meet that province's requirements.
Uber Canada says every ride arranged with the UberX platform -- which connects drivers with riders -- is backed by $5 million of commercial auto insurance, which covers both bodily injuries and property damage stemming from a crash.
Edmonton has developed a new draft bylaw that could legalize ridesharing services in the city. The Vehicle for Hire bylaw could see Edmonton become the first Canadian municipality to green-light Uber and similar services.
One of the key requirements of the bylaw includes the requirement that drivers have appropriate insurance.
The proposed bylaw has been accepting comments via an online survey (open until September 10), and will go in front of a public hearing on September 16.
Intact Financial Corp. is Canada's largest provider of property and casualty insurance, collecting $7.5 billion in premiums annually through its various subsidiaries.
With files from Canadian Press