FSCO APPROVES AVIVA CANADA RIDE-SHARING POLICY

FSCO APPROVES AVIVA CANADA RIDE-SHARING POLICY

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Aviva Rideshare Insurance is now available for Ontario drivers, is a simple addition to an Aviva-insured policy

The Financial Service Commission of Ontario has granted regulatory approval to Aviva Canada to launch its ride-sharing specific auto insurance policy in the province. The policy is a huge help to controversial ride-sharing company Uber as it gives its drivers their first ever auto insurance coverage. The Insurance Bureau of Canada (IBC) described the policy as a first of its kind in Canada.

The most interesting result of the FSCO’s decision is that it leaves UberX operatives in Canada’s largest province covered for the first time, but those same drivers are still working in Ontario illegally. That’s because Uber is still yet to receive regulatory permission in the province, in other words the UberX service has not been legalized.
Aviva says it is fulfilling a customer need and filling a space in the market.

“There are a lot of people out there trying to make some extra money, and that’s a great thing, but they’re doing it without the appropriate coverage for themselves and for their passengers as well,” said spokesman Glenn Cooper.

Toronto has recently voted to regulate Uber, but changes have not been implemented yet, while a bill to potentially legalize ride-sharing services in Ontario is still waiting to go before the committees. Champion of that bill, Progressive Conservative Tim Hudak, has described Aviva’s policy as a major step forward and urged the province to legalize sharing companies.

“The longer we delay on an overall ride-sharing legislative framework the less help it is for cabbies, for Uber drivers, for customers and I’m worried that situation, that tension, is going to escalate if the province does not act,” he said.

However, the taxi industry remains hugely critical of Uber and opposition to the company is never likely to cease, even if the company is legalized and regulated fairly. Taxi associations have protested Uber and think the company provides illegal and unfair competition, and as such they have also spoke critically of Aviva’s policy.

“We are very concerned that an Aviva announcement that ‘an approved product exists and is available for purchase’ will be misconstrued by politicians to mean ‘20,000 illegal UberX drivers are now insured,’ Toronto Taxi Alliance president Gail Souter and Canadian Taxicab Association president Marc Andre Way wrote in a letter to Aviva.

Aviva Canada released a statement on its media relations page last week saying that it does not endorse Uber or any other ride-sharing company.

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