Intact working on Uber ride-share insurance
Isaac Zisckind, Diamond & Diamond Personal Injury Lawyers, was recently featured in several press outlets discussing personal auto insurance coverage for UberX drivers. The firm is currently representing Taqfiqul Alam after his car accident in Toronto while driving for the ride-sharing platform UberX.
Uber and Intact Financial Corp. recently partnered to provide Canada’s 1st ride-sharing insurance policy. While details are sparse as Intact is currently waiting for approval from provincial insurance regulators, the intention is to offer the insurance coverage under the company’s two main brands: Intact Insurance and belairdirect.
In a statement made by Louis Gagnon, president of service and distribution at Intact Financial Corp., “With the growing popularity of the sharing and on-demand economy, we are adapting our product range to offer innovative solutions to meet the changing needs of consumers.”
Uber Canada has argued that its insurance policies are adequate. A spokeswoman for the company said in July that every ride on the uberX platform is backed by $5 million of commercial auto insurance, which covers both bodily injuries and property damage stemming from a crash.
According to Uber Canada, “Every ride on the UberX platform in Canada is backed by US$5,000,000 of contingent auto liability insurance covering bodily injury and property damage. This US$5,000,000 of coverage is more than two times the standard requirement for taxi and limo insurance in Toronto”. However, the Insurance Bureau of Canada warns that personal car insurance won’t cover drivers if they’re in a collision or a passenger is injured, so drivers must carry commercial auto insurance covers.
However, in the case of Taqfiqul Alam, he was rejected by his insurance company (which was expected) but the ride-sharing platform Uber has been dragging its feet in providing the contingent auto liability coverage requested by the driver. More information can be found here.
As the sharing economy grows, including platforms such as: Uber, Lyft, Airbnb, Task Rabbit, Lending Club and more, the need to provide proper insurance and implement regulations is more important than ever.