Uber Drivers to Need $7 Million Insurance in Toronto

Uber Drivers to Need $7 Million Insurance in Toronto

This week, the City of Toronto issued a draft proposal for a bylaw that would allow private transportation companies (PTCs) like Uber be legal and regulated. However, the ride-sharing giant has said the insurance parameter set out by the city are too harsh, and on closer exception it seems Toronto’s criteria is even higher.
Uber original said it was against the $5 million liability proposed by the city and would prefer $2 million, a number also mooted by consultancy experts who aided the Toronto council. However, the figure could actually be as much as $7 million, $2 million of collision and passenger hazard insurance, in addition to $5 million of commercial general liability insurance.

Collision and passenger insurance is currently required by all taxi operatives in Toronto and the city says its draft bylaw is aiming to create a level playing field. Taxi companies have argued that it really means a level playing field to allow Uber to dominate the taxi industry, and is calling for harsher taxi-like regulations, including insurance.

The draft also included changes to fares, with cabs now carrying a $3.25 minimum fare and then $0.25 for every additional 143 meters and $0.25 for every wait of 29 seconds.

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