Uber Not Pleased by Ottawa Insurance Regulations

Uber Not Pleased by Ottawa Insurance Regulations

Uber is still facing auto insurance troubles, even in areas of the country where the company seems to have a passage to legalization with insurance options in place. Toronto announced a draft bylaw to accommodate Uber and other ride-sharing companies this week, just days after Ottawa had also revealed its path to Uber regulation.

The key to both these cities is that they are in Ontario, the only province in the country that currently has an auto insurance product designed for ride-sharing companies.

Aviva Canada launched an auto insurance policy in the province in February that provides coverage for drivers of ride-sharing companies. The product has been approved by the Financial Services Commission of Ontario (FSCO), but is limited to drivers working up to 20 hours per week. Uber is also known to be working with Intact Insurance towards an exclusive policy, but it has not been formerly announced yet.

With that in mind, it seems the path to legalization is open to Uber, but in response to Ottawa’s potential regulations, the company thinks the city’s insurance regulations are too strict. The capital is demanding non-owned automobile insurance coverage of $5 million, while Uber thinks it should be $2 million. Interestingly KPMG acted as a consultant to the city and also recommended $2 million liability coverage.

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